A government-backed framework for corporate approaches to financial disclosures on nature is ready for consultation.
The Taskforce on Nature-related Financial Disclosures (TNFD) has unveiled the fourth draft of its Nature-Related Risk & Opportunity Management and Disclosure Framework, which aims to enable organisations to report and act on evolving nature-related risks. After a consultation period and pilot testing, it will be published in September.
The framework has been viewed more than 90,000 times by market participants across more than 150 countries and territories. The latest version has reduced its proposed recommended disclosures from 15 to 14, based on feedback. It also defines risk and opportunity assessments for nature under the Locate, Evaluate, Assess and Prepare approach, while aligning its recommendations with those of the Taskforce on Climate-related Disclosures. The TNFD said that this alignment will enable more market participants to integrate climate and nature into their reporting.
Three tiers of disclosure metrics are proposed, covering ‘core global’, ‘core sector’ and ‘additional’ issues. The latest TNFD framework also adapts Scopes 1, 2 and 3 in climate reporting for use in nature, covering direct operations, upstream, downstream and financed impacts.