Posted on 18 September 2023
Today, the Taskforce on Nature-related Financial Disclosures (TNFD) has published its final Recommendations for nature-related risk management and disclosure.
aim to inform better decision-making by companies and capital providers, and ultimately contribute to a shift in global financial flows toward nature-positive outcomes and the goals of the Kunming-Montreal Global Biodiversity Framework. An accompanying suite of additional guidance has also been released to help market participants get started with integrated assessment and corporate reporting related to nature.
Aaron Vermeulen, Global Finance Practice Lead, WWF International, said: “As a founding partner of the Taskforce for Nature-related Financial Disclosures (TNFD), WWF welcomes the release of its recommendations. Having a science-based framework that enables companies and financial institutions to disclose nature-related dependencies, impacts, risks and opportunities is a major milestone in forging a nature-positive global economy. As a forum member, knowledge partner and member of its Stewardship Council, WWF will support the TNFD to continue strengthening the framework, and we encourage its widespread adoption by the private sector.”
The Recommendations released today build on those of the Task Force on Climate-related Financial Disclosures (TCFD) and are consistent with the global sustainability standards of the International Sustainability Standards Board (ISSB) and the impact materiality approach used by the GRI and incorporated into the new European Sustainability Reporting Standards. This provides reporting organisations with a set of nature-related guidance that enables their reporting requirements across jurisdictions with the different approaches to materiality now in use.
Elizabeth Aceeituno, Sustainable Fiinance Expert, WWF International, said: "As a market-led initiative, the TNFD will boost the integration of nature into financial and business decision-making and help accelerate the shift of global financial flows toward nature-positive outcomes. Companies and financial institutions should adopt the framework, disclosing not only the nature-related risks they face but also embracing 'double materiality' and addressing their impacts on nature and society. Beyond voluntary disclosure, we also need a range of private and public sector measures that scale action for nature."
Read WWF's opinion piece on why nature-related disclosure is a milestone in shaping a nature-positive global economy here.
Importantly, the TNFD Recommendations are also aligned with the requirement of Target 15 of the Global Biodiversity Framework for corporate reporting which calls for assessment and disclosure of nature-related risks, dependencies and impacts, enabling companies to now align their corporate reporting with global policy goals as they are now doing on climate related issues.
Find the TNFD recommendations here, and read the full TNFD press release here.