The Taskforce on Nature-related Financial Disclosures (TNFD) has published the final version of its recommendations on a framework to identify, assess, manage and disclose nature-related issues.
The TNFD aims to do for nature what the Task Force on Climate-related Financial Disclosures (TCFD) did for climate, with the aim being to “position nature risk alongside financial, operational and climate risk and help to shift capital flows to nature-positive outcomes”. For these purposes, “nature” encompasses land, ocean, freshwater and atmosphere – and so goes further than the concept of “biodiversity”.
TNFD recommendations in a nutshell
The TNFD recommendations are based on the same four pillars as the TCFD:
- Governance: the governance processes, controls and procedures the organisation uses to monitor and manage nature-related issues.
- Strategy: the approach the organisation uses to manage nature-related issues.
- Risk and impact management: the process used by the organisation to identify, assess, prioritise and monitor nature-related dependencies, impacts, risks and opportunities.
- Metrics and targets: the metrics and targets used to assess and manage material…
