On September 18, the Taskforce for Nature-related Financial Disclosures (TNFD) released its final set of recommendations and guidance for implementation. The bottom-line message: the health and resilience of nature is no longer a social issue but a core strategic issue every business and financial institution must address.
A foundational driver of the TNFD approach is that our economies and financial systems are not separate from nature but embedded in it. Nature is declining at an unprecedented pace, and this deterioration poses risks to businesses, financial systems, and economies. Governments and central banks recognize this and are acting through policy and fiscal action to ensure this threat is addressed.
The TNFD guidance provides the framework by which organizations can integrate nature into decision-making, and follows in the footsteps of its recommendations on climate-related financial disclosures. The guidance outlines 14 disclosures aggregated around four reporting pillars: governance; strategy; risk and impact management; and metrics and targets.
The TNFD provides guidance for implementing the final recommendations, including supporting materials that help organizations identify, analyze, manage, and disclose nature-related issues. The new publications include:
- A set of recommended indicators and metrics for analysis
- A suite of guidance materials, including, but not limited to, the following topics:
- How to get started with TNFD
- The use of the LEAP Approach in the identification and assessment of nature-related interactions:
- Locate your interface with nature
- Evaluate your dependencies and impacts
- Assess your risks and opportunities
- Prepare to respond to nature-related risks and opportunities and report.
- Sector- and ecosystem-specific guidance
- Scenario analysis
- Engagement of Indigenous Peoples, Local Communities, and affected stakeholders.
Implementing the TNFD framework is complicated. It requires a wide array of specialty disciplines to accurately evaluate and assess how an organization interacts with nature.
Don’t know where to start?
Integral's multidisciplinary team of ecologists, spatial analysts, climate risk specialists, and environmental economists are experts in identifying linkages between human systems and the natural world and can help your organization navigate the process in a way that aligns with existing operations and additional reporting requirements.