Natural-related Financial Disclosure
TNFDThe Taskforce on Nature-related Financial Disclosures (TNFD) was established in 2021 in response to the growing need to factor nature into financial and business decisions. It is a global, market-led initiative with the mission to develop and deliver a risk management and disclosure framework for organisations to report and act on nature-related risks and opportunities. The first version of the framework (v0.1) was published in March 2022. In June 2022, v0.2 was launched with new features such as draft metrics and targets for measuring dependencies and impacts. Version v0.3 was published on November 4, 2022, including new developments such as new disclosure recommendations, an enhanced LEAP approach (Locate, Evaluate, Analyze and Prepare), a draft on nature-related target setting, draft guidelines for disclosure by financial institutions, and consultation documents for scenario analysis. A new v4.0 version was published for consultation in March 2023. Finally, the TNFD published the final version of its disclosure standards in September 2023.
Taskforce on Natural-related Financial Disclosures (TNFD)
Executive summary
The TNFD aims to create a risk management and disclosure framework that can be used by organizations of all sizes and in all jurisdictions to identify, assess, manage and disclose nature-related dependencies, impacts, risks and opportunities. The updated framework incorporates a number of important modifications and additions aligned with the TNFD framework´s core components. The most significant updates concern the approach to disclosure and the usability of LEAP.
Main content
The TNFD framework has five main components:
- Fundamentals for understanding nature. Fundamental concepts and definitions recommended by TNFD for understanding nature.
- TNFD disclosure recommendations. Disclosure is based on four pillars (same as in TCFD): governance, strategy, risk and impact management, and metrics and targets.
- LEAP methodology and MLAs. Voluntary guidance to support internal assessments of nature-related risks and opportunities.
- Metrics and targets. Metrics and targets architecture and metrics guidance for assessing nature-related dependencies and impacts.
- Specific guidance. Focus of recommendations and guidance on three aspects: sector-specific, nature-related issues, and domain-specific.
Download the technical note on Natural-related Financial Disclosure (also available in Spanish).