The Philippine Geothermal Production Company (PGPC) has made history as the first energy firm in the Philippines to adopt the Taskforce on Nature-related Financial Disclosures (TNFD) framework—an emerging global standard for integrating biodiversity, ecosystems, and nature-related risks into corporate reporting.
This milestone highlights a trend that African energy producers—particularly in the renewables sector—can no longer afford to ignore.
PGPC, a subsidiary of SM Investments Corporation, will begin reporting under the TNFD framework in its 2025 Sustainability Report, joining over 500 companies globally, including Moody’s, PwC, S&P Global, and Sumitomo.
What Is TNFD—and Why Should Africa’s Energy Sector Pay Attention?
Launched in 2021, the TNFD framework helps companies identify and disclose how their operations both impact and depend on nature. Similar to the now widely adopted Taskforce on Climate-related Financial Disclosures (TCFD), TNFD aims to align financial flows with nature-positive outcomes, not just climate-neutral ones.
For African countries where biodiversity is rich but vulnerable, and where energy projects often intersect with critical ecosystems—from Kenya’s geothermal fields in the Rift Valley to hydropower installations along the Congo and Nile—adopting TNFD principles could bring several advantages:
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Attract nature-conscious investors and multilateral funders
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Improve ESG (Environmental, Social, and Governance) ratings
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Mitigate ecological risks and avoid community backlash
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Strengthen project approval processes and license-to-operate
A Geothermal Parallel for Africa
PGPC currently operates two major geothermal steam fields in Southeast Asia, delivering up to 300 MW of baseload renewable energy. With similar geothermal potential across East African countries—including Ethiopia, Kenya, Djibouti, and Rwanda—Africa can draw direct inspiration.
Several African nations are already scaling geothermal energy, but few operators have yet embedded nature-risk assessments into their sustainability or financial disclosures. As environmental scrutiny and sustainable finance requirements grow, early adoption of TNFD-like frameworks could give African firms first-mover advantages in global markets.
A Call to Action for African Energy Stakeholders
As Africa intensifies efforts to build a just, clean energy future, nature-positive energy development must complement the decarbonization agenda. Governments, private developers, and utilities should:
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Integrate TNFD-aligned practices into national energy strategies and environmental regulations.
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Encourage state-owned and private energy firms to pilot nature-related risk disclosures.
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Build capacity in ESG reporting to align with evolving global standards and funding requirements.
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Partner with local conservation experts, indigenous groups, and environmental scientists to ensure on-the-ground realities inform policy and reporting.
The Future Is Not Just Net-Zero—It’s Nature-Positive
PGPC’s move underscores a broader shift in global sustainability thinking—from focusing solely on climate emissions to recognizing the inseparable link between climate, nature, and energy systems.
As Africa positions itself as a global renewable energy leader, the continent must also lead in ensuring that energy development respects, preserves, and benefits from the natural ecosystems on which it depends.
