TNFD publishes nature transition guidance
October 31st, 2024
The Taskforce on Nature-related Financial Disclosures (TNFD) has published a discussion paper setting out draft guidance on nature transition planning.
For corporates and financial institutions, the paper details how to develop and disclose a transition plan in line with the TNFD recommended disclosures.
It includes a definition of a nature transition plan, an overview of related initiatives and guidance on what a nature transition plan should include and how it should be disclosed.
The guidance aims to stimulate further work and collaboration to support nature transition plans including on transition pathways and transition finance categories.
Emily McKenzie, Technical Director at TNFD, said reaching this goal requires a broad effort across institutions:
“Every business has impacts and dependencies on nature. They also face growing physical, transition and systemic risks as the resilience of nature underpinning our economies and societies continues to erode.
“It is now critical for organisations to consider the concrete actions they are going to take to address those issues – for the benefit of their own organisation and to contribute to the achievement of nature positive outcomes as called for by the Global Biodiversity Framework,” she said.
The Kunming-Montreal Global Biodiversity Framework’s (GBF) mission is to reverse biodiversity damage by 2030. To meet this goal, significant changes need to be implemented to business practices across all sectors.
Within the paper, an organisation’s goals, targets, actions, accountability mechanisms and intended resources to respond and contribute to the transition are set out.
“The discussion paper released today builds on market practice and experience with net zero transition planning – particularly the approach and guidance provided by GFANZ and the TPT – and ultimately seeks to move towards integrated transition planning for the benefit of investors and other stakeholders,” added McKenzie.
The discussion paper is open for consultation until February 1, 2025.
Last Updated: 1 November 2024