The Taskforce on Nature-Related Financial Disclosures is an international initiative that builds on a model developed by the Taskforce on Climate-Related Financial Disclosures (TCFD). Its mission is to provide a framework for how organizations can address environmental risks and opportunities with the ultimate goal of channeling capital flows into positive action.
The recommendations of the TNFD have been designed to meet the corporate reporting requirements of organisations across jurisdictions, to be consistent with the global baseline for corporate sustainability reporting and to be aligned with the global policy goals in the Kunming-Montreal Global Biodiversity Framework. The TNFD disclosure framework consists of conceptual foundations for nature-related disclosures, a set of general requirements, a set of recommended disclosures structured around the four pillars of governance, strategy, risk and impact management, and metrics and targets. This is consistent with the approach of the TCFD and the ISSB's IFRS Standards.
Recommendations include six general requirements that are additional to the general requirements and other provisions of the ISSB's IFRS-S1 Standard. Report preparers publicly stating their use of, and alignment with, our recommendations are expected to apply the general requirements to create consistency in the information disclosed. The general requirements apply to all four pillars of the recommended disclosures.
They describe:
- A. The application of materiality
- B. The scope of disclosures
- C. The location of nature-related issues
- D. Integration with other sustainability-related disclosures
- E. The time horizons considered
- F. The engagement of Indigenous Peoples, Local Communities and affected stakeholders in the identification and assessment of the organisation's nature-related issues
TNFD has published its final framework on September 2023.
The TNFD framework is voluntary.
To whom and how to report:
Stakeholders
