The Taskforce for Nature-related Financial Disclosures (TNFD) has released its long awaited first (beta) version of its nature-related risk-management and disclosure framework. Annelisa Grigg, Director of Globalbalance supported in TNFD in the development of the foundational concepts and definitions that underpin this framework.
- Is the first integrated approach to incorporating nature-related risk and opportunity analysis into the heart of corporate and financial decision making
- Provides foundational guidance, including key science-based concepts and definitions, to help a wide range of market participants understand nature, and nature-related risks and opportunities
- Recommends disclosures aligned with the approach and language of the climate-related guidance developed by The Task Force on Climate-related Financial Disclosures (TCFD)
- Gives practical guidance on nature-related risk and opportunity analysis for companies and financial institutions to consider incorporating into their enterprise risk and portfolio management processes
TNFD’s disclosure recommendations build on work done by the TCFD in recognition of the interlinkages between climate change and nature loss and in response to calls from market participants for a consistent approach and language across sustainability reporting. The framework considers the importance of location throughout in recognition that dependencies and impacts on nature are inherently local. A wide range of partners from financial institutions, corporations, market service providers, NGOs and academia have collaborated on the project, demonstrating the increasingly agenda-topping importance of nature-related risk management for business. Further iterations of the framework are planned for release throughout 2022-23, building on the feedback of market participants and stakeholders.
A further three iterations of the beta versions are planned for release in June 2022 (v0.2), October 2022 (v0.3) and February 2023 (v0.4). This will culminate in the final release of the TNFD’s recommendations (v1.0) planned for September 2023.
Pine Forest” by wackybadger is licensed under CC BY-SA 2.0.