TNFD releases third iteration of beta framework
November 11, 2022
The Taskforce on Nature-related Financial Disclosures (TNFD) has released an ambitious third draft of its beta framework and is calling for greater transparency from companies.
After two iterations of the framework, which was first published in March, the new one has expanded its scope in several areas.
The TNDF’s work is aimed at encouraging businesses and financial institutions to assess and disclose how they impact on nature – and how it impacts on them.
It is building on the success of a previous work by the Taskforce on Climate-related Financial Disclosures (TCFD), which has changed the way firms’ boards consider their impacts on climate change and has gained traction in 89 countries and nearly all sectors of the economy.
The latest TNFD framework includes an expansion on the draft disclosure recommendations to incorporate the impacts of nature, alongside the risks and opportunities to the organisation.
Specifically, it wants greater transparency on supply chains, stakeholders, and whether a company’s climate and nature targets are aligned with those at the TNFD.
The fourth draft of the framework is due out in March ahead of the publication of the final version’s recommendations in September 2023.
It will be informed by feedback from businesses, financial institutions, governments, regulatory bodies and poor and rich communities from across the world, and more than 130 organisations have already signed up to pilot test it.
TNDF co-chairman Elizabeth Mrema said: “The framework is evolving in a direction that is well aligned with emerging regulatory and standard setting approaches and also with global policy goals currently being negotiated as the Global Biodiversity Framework (GBF).
“I am confident the framework can be the practical connective tissue between global political commitment to act on nature loss represented by the GBF and the mobilisation of business and finance action through better risk management and capital deployment.”
Last Updated: 11 November 2022