On 27 October 2024, the Taskforce on Nature-related Financial Disclosures (TNFD) issued a discussion paper which sets out draft guidance on nature transition planning for corporates and financial institutions developing and disclosing a transition plan in line with the TNFD recommended disclosures.
Focus areas
The draft guidance covers all aspects of nature apart from climate change and greenhouse gas emissions as drivers of nature loss, and natural carbon stocks.
Transition planning for these topics is covered in guidance from organisations such as the Glasgow Financial Alliance for Net Zero, including their complementary voluntary draft guidance for financial institutions on nature in net zero plans, which is now out for consultation. The TNFD discussion paper does, however, include considerations of synergies and trade-offs across sustainability objectives, including social objectives. Organisations should ideally move towards integrated planning over time.
Key focus areas in the draft guidance include:
- A definition of a nature transition plan.
- An overview of related initiatives.
- Guidance on what a nature transition plan should include.
- Guidance on how a plan should be presented and disclosed.
- Areas of further work needed to support development and assessment of nature transition plans.
Next steps
The deadline for comments on the discussion paper is 1 February 2025.
The TNFD encourages businesses and financial institutions to pilot test the draft guidance set out in the discussion paper.
Based on the feedback received through the consultation, and insights gained through potential pilot testing, the final guidance will be published in 2025.