TNFD (Taskforce on Nature-related Financial Disclosures)
Framework for reporting on nature-related risks and opportunities.
What is TNFD (Taskforce on Nature-related Financial Disclosures)?
The Taskforce on Nature-related Financial Disclosures (TNFD) is a global initiative that has developed a risk management and disclosure framework for organizations to report on evolving nature-related issues. Similar to TCFD for climate, TNFD aims to enable companies and financial institutions to integrate nature into their decision-making and report on their dependencies and impacts on nature.
Why is TNFD (Taskforce on Nature-related Financial Disclosures) important?
The TNFD is important because it addresses the critical need for businesses and financial institutions to understand and act on their relationship with nature. By providing a standardized framework, it helps identify, assess, manage, and disclose nature-related risks and opportunities, ultimately driving financial flows towards nature-positive outcomes and preventing biodiversity loss.
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Frequently asked questions
Similar to TCFD, the framework is structured around four pillars: Governance, Strategy, Risk & Impact Management, and Metrics & Targets.
Nature loss and climate change are intrinsically linked. TNFD disclosures complement climate-related disclosures (like TCFD) by highlighting how nature impacts financial performance and vice versa, emphasizing nature's role in climate resilience and mitigation."
Currently, TNFD reporting is voluntary, but it is expected to become a widely adopted best practice, similar to TCFD, and may eventually inform future regulatory requirements.