GSK looks to Nature-related Financial Disclosures to boost sustainability

Sustainability and TNFD is a core element of GSK’s net zero journey as the company aims for net positive impact on nature by 2030.

Sustainability and TNFD for the pharmaceutical and biotechnology company means reducing its impact on nature across multiple elements of natural capital: water, waste and materials and biodiversity while investing in nature conservation and restoration.

The company is collaborating with partners on water, materials and biodiversity initiatives. Finance has a key role to play in delivering its nature goal and represents GSK as a member of the Taskforce on Nature-related Financial Disclosures (TNFD), leading a working group on Metrics and Targets.

Partners such as the Science Based Targets Network (SBTN) also support GSK with setting targets and developing methodologies to achieve them, which are aligned to the company’s TCFD and future TNFD reporting.

“As a science-based healthcare company, understanding and managing our environmental impact and dependencies is fundamental to our purpose,” the company writes in a sustainability and TNFD report. “We know that a thriving natural word is fundamental to human health and long-term business success. That is why we have set the target to be nature net positive by 2030, and plan to achieve this by reducing our environmental impacts across water, materials and biodiversity and investing in protecting and restoring nature.”

To create effective sustainability and TNFD strategies GSK suggests that, “You need to understand your key areas of focus and what is most material to your organization. We continue to identify key areas of focus by assessing what is material to our organization and collaborating with others to understand how to address key areas.

“We started by collaborating with others to understand the definition and the scope of the issues. Some examples of collaborations include: Working with the Rainforest Alliance to develop standards for sourcing naturally derived materials, while participating in the Water Resilience Coalition has showed us that we need to work together to address shared water challenges.”

The Science Based Targets Network provides a framework for setting targets and taking action on those targets to protect and restore natural capital. GSK is also an early supporter of the Taskforce on Nature-Related Financial Disclosures and is embedding this process into the business from the beginning.

GSK has senior representatives from the Finance Team leading the Metrics and Targets sub-group. Recently, there has been a number of sustainability reporting consultations which require finance to take on a greater role in this area, including the International Sustainability Standards Board (ISSB), US SEC, European Financial Reporting Advisory Group (EFRAG).

Going forward the company says it will complete its materiality assessment of the most important areas of business impact and dependency on nature by following the Science Based Targets approach. GSK offers the following tips to effective sustainability and TNFD:

BE STRATEGIC – Consider what’s material for your organization and where your gaps are so you can focus on the most meaningful partnerships for your organization. For an overall view of a business approach to nature and target setting, the Science Based Targets Network is a good place to start.

DRAW ON EXISTING RELATIONSHIPS – Look at the organizations you already work with for different areas of natural capital – for example, your waste vendor or your water supplier. They can often help you to define some of your initial challenges.

GET INVOLVED – Use your voice to shape new standards and reporting frameworks. The strength of these initiatives comes from people with a range of perspectives coming together to tackle a shared problem. Whatever the sector or size of your organization, your input is relevant and important.