TNFD: A new era of nature-related disclosures

As part of Climate Week NYC, the Taskforce on Nature-related Financial Disclosures (TNFD) has unveiled its much-anticipated final set of recommendations. This marks a significant step towards aligning corporate practices with the pressing need for more transparent and standardised nature-related disclosures.

Spanning two years of meticulous design and development, the TNFD has finally shared 14 core disclosure recommendations. These are supported by a comprehensive suite of implementation guidance. The expectation is palpable, with many looking to leading companies to announce their alignment with this framework in the coming weeks.

Companies are not waiting on the sidelines. GSK has already laid out its plans to release its first TNFD disclosures by 2026, leveraging data from 2025.

The World Economic Forum Meeting in Davos, scheduled for January 2024, is looked upon as a potential watershed moment. Many anticipate an additional surge of corporate backing for the TNFD framework at this event.

The why and the how of TNFD disclosures

By choosing to align with the TNFD framework, businesses are taking a monumental step. Not only are they providing essential data in a unified format for crucial stakeholders, such as regulators and investors, but they’re also paving the way for an impending mandate. Under the UN’s biodiversity treaty, over 190 nations will adopt corporate nature-related disclosures by 2030.

To assist businesses in this transition, the TNFD has rolled out 14 definitive reporting recommendations. These touch upon disclosing nature-linked impacts, risks, and dependencies that span a company’s entire value chain. Mirroring the structure of the Taskforce on Climate-Related Financial Disclosures’ (TCFD) framework, the TNFD’s recommendations fall under four primary pillars: governance, strategy, risk and impact management, and metrics and targets.

Building upon previous insights

Before this final reveal, the TNFD had launched four beta versions of the framework, incorporating feedback and insights with each iteration. 

It’s also noteworthy that the TNFD framework is a synthesis of insights from existing standards. It leverages the expertise of the International Sustainability Standards Board (ISSB) and the Global Reporting Initiative (GRI) – both of which partnered with the TNFD as knowledge contributors.

In line with the momentum, CDP, a global environmental disclosure platform, has voiced its intention to integrate its platform with the TNFD. Their goal is to embed the framework into their system by 2024, setting a precedent for others to follow.

The unveiling of the TNFD framework’s final recommendations heralds a new age in corporate transparency related to nature. With leading companies and global institutions throwing their weight behind it, the future looks promising for both businesses and the planet. It is important to keep front of mind that this is just the start; companies must rapidly implement this guidance to enact change at the scale required.

 

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