Preparing for TNFD

Since the adoption of the Kunming-Biodiversity Global Framework in 2022, transformative action to halt and reverse biodiversity loss has seen an increase in importance. As the Taskforce on Nature related Financial Disclosures released their final recommendations in September 2023, Landcom sought to better understand its current approach to nature and how these new recommendations could influence the organisation.

Landcom firstly signaled its intent to disclose under the new recommendations by FY25. Over FY24, Landcom reviewed actions undertaken by our peers around nature, undertook internal stakeholder engagement on how we manage biodiversity and reviewed global, national and local drivers to establish a high-level overview of nature-related risks and opportunities.

In particular, risks to Landcom included:

• Changes to legislation resulting in additional costs for ecosystem or species credits, impacts on approval timeframes or limiting the viability of development;
• Reduced revenue or increased costs due to changes in natural resource supply and quality such as timber in construction or waterway pollution;
• Perception that Landcom is not adequately addressing biodiversity, leading to reputational challenges;
• Reduced availability of viable offsets and credits, limiting the ability to develop land.

Conversely, opportunities identified included:

• Competitive advantage and beneficial returns for developments that are resilient to climate change and offer an opportunity to interface with nature;
• The ability to regenerate and restore land within our developments, bringing along the community, fostering a sense of place and encouraging social connections; and
• Green infrastructure as a means and alternative to grey infrastructure in providing additional ecosystem services such as urban cooling, enhanced biodiversity and improved soil health.

While Landcom is well placed for disclosure based on our previous experience in disclosing under the former Taskforce on Climate-related Financial Disclosures and based on our current metrics and targets addressing nature, additional work is required. Our next steps include preparing for FY25 disclosures by undertaking a formal LEAP assessment and scenario analysis to support a more detailed nature-related risk and opportunity investigation as well as refining short, medium and long-term actions for the organisation.