Taskforce updates nature-related disclosure framework
The latest amendments to a framework to help corporates to outline and disclose their nature-related risks and impacts have been unveiled, ahead of its official launch next year.
This is the third and latest version of the Taskforce on Nature-related Financial Disclosures’s (TNFD) beta Nature-Related Risk & Opportunity Management and Disclosure Framework. This expands earlier draft disclosure recommendations to incorporate ‘dependencies and impacts’ on nature, alongside the risks and opportunities to an organisation. These include supply chain traceability, rights holders, engagement, and the alignment of climate and nature targets.
The TNFD says that the latest version aims to accommodate different organisation types’ varying reporting preferences, as well as to support early action by companies and financial institutions and encourage their ambitions for disclosure over time. It includes additional guidance on risk and opportunity assessment and the metrics proposed to support analysis. It also offers draft guidance on target-setting, developed with the Science Based Targets Network, as well as draft disclosure guidance for financial institutions.
The organisation says that this third version of its framework is based on feedback from corporates, financial institutions, governments, regulatory and standards bodies, civil society organisations, indigenous peoples and local communities around the world.
TNFD co-chair David Craig said that the framework “now provides a full spectrum of recommended disclosures across dependencies, impacts, risks and opportunities to support the reporting preferences and compliance requirements of report preparers everywhere.” He added: “Our objective is to provide the TNFD framework as a powerful tool that helps move business and finance to take action on nature-related dependencies, impacts, risks and opportunities sooner rather than later.
“This framework will encourage increasing disclosure ambition over time, essential to aligning financial flows and business activities to the task of urgently halting and reversing nature loss, and ensuring that both business and finance become more resilient in the face of the increasing frequency and magnitude of nature-related risks that are clearly apparent today.”