On 19 September 2023, the Taskforce on Nature-related Financial Disclosures (TNFD) published its recommendations.
The TNFD was launched in 2021. It is a global, market-led, science-based, and government-supported initiative with the mission to develop and deliver a risk management and disclosure framework for organisations to report and act on evolving nature-related issues.
The aim of the recommendations is to help business and financial institutions integrate nature-related issues into decision-making, risk management and disclosures. They include a set of general requirements for nature-related disclosures and a set of recommended disclosures structured around the four pillars of governance, strategy, risk and impact management, and metrics and targets.
The key focus areas of the recommendations are:
- The importance of nature’s health and resilience for societies, economies and finance.
- An introduction to understanding nature and business.
- Outline of the TNFD disclosure framework.
- Conceptual foundations and general requirements for nature-related disclosures.
- 14 recommended disclosures.
- Overview of metrics architecture and recommended set of disclosure metrics.
Following the publication of the recommendations, the TNFD will move to the next phase of its work to encourage and scale voluntary market adoption of the recommendations by expanding market awareness, market engagement and supporting market capacity building efforts.
The TNFD encourages organisations to get started and begin their nature-related assessment and reporting.
In a recent survey of the TNFD Forum, over 86% of 239 respondents from 36 countries and across 11 sectors indicated that they felt they could start reporting on the TNFD recommended disclosures by calendar year 2026, based on their financial year 2025 outcomes.
