What is the Taskforce on Nature-related Financial Disclosures?

The Taskforce on Nature-related Finance Disclosures (TNFD) is a global initiative that aims to establish a framework to support companies in identifying and managing nature-related risks and opportunities and to guide companies on how these risks should be reported and monitored.

The TNFD has attracted considerable international attention and the development of the framework is being followed with great interest by companies as well as the banking and finance industry, from an ownership and governance perspective.

WHY SHOULD YOU WORK WITH TNFD?

Virtually all sectors and companies are affected to some extent by the TNFD, either directly or through impacts and/or dependencies on natural resources in their value chain. Reporting under the TNFD will be voluntary, but the current trend is towards increasingly stringent requirements. The related Task Force on Climate-Related Financial Disclosures (TCFD), released in 2017, is now mandatory in several countries.

HOW DO YOU GET STARTED WITH TNFD?

Map the current footprint
Don't do everything at once! Start by setting boundaries and then identify the existing footprint and current situation by mapping and assessing the status and vulnerabilities of nature.
Evaluate
Step 2 involves following up the mapping exercise by evaluating the environmental assets and ecosystem services on which the company depends. Don't forget to take the stakeholder dialogue into account.
Assess risks and opportunities
Evaluate risks and opportunities in terms of the dependencies and impacts identified. What existing methods to reduce risks and seize opportunities do you already apply and where are the gaps?
Enable and monitor
Consider what should be disclosed in line with the TNFD recommendations and define KPIs. Also decide which stakeholders should be involved in the results of the analysis.

Do not hesitate to contact us for support in understanding and implementing the long-awaited TNFD framework.