TNFD publishes final disclosure recommendations
September 20th, 2023
The Taskforce on Nature-related Financial Disclosures (TNFD) has published its final recommendations for nature-related risk management and disclosure.
TNFD has released 14 recommended disclosures and a suite of additional implementation guidance to inform better decision making by companies and capital providers.
The recommendations encourage firms to disclose their governance of nature-related dependencies and the effects of nature-related dependencies on company strategy.
They also encourage companies to describe processes used to monitor nature-related risk and impact management and disclose the metrics and targets used to assess nature-related dependencies.
The recommendations come at a critical time, according to the TNFD, amid growing interest across business and finance in nature and biodiversity issues.
David Craig, co-chair of the TNFD, said: “Nature loss is accelerating, and businesses today are inadequately accounting for nature-related dependencies, impacts, risks and opportunities. The costs of inaction are mounting quickly.
“Businesses and financial institutions now have the tools they need to take action.”
The recommendations have been developed to be in line with the standards set by the International Sustainability Standards Board (ISSB) and the impact materiality approach used by the Global Reporting Initiative (GRI), to ensure guidance is consistent across jurisdictions.
They also align with the global policy goals and targets in the Kunming-Montreal Global Biodiversity Framework (GBF), including Target 15 on corporate reporting of nature-related risks, dependencies and impacts.
The recommendations have been published alongside guides to broaden uptake and adoption, including guidance on the identification and assessment of nature-related issues and guidance for financial institutions, which includes draft metrics for feedback.
The TNFD will announce an inaugural list of TNFD Adopters at the World Economic Forum at Davos in January 2024.
The new recommendations come as pilot testing of the beta framework by 130 organisations around the world recently found further guidance was necessary for businesses to conduct robust reports on nature-related disclosures.
Last Updated: 21 September 2023