Taskforce on Nature-related Financial Disclosures - Proposed disclosure framework released

The Taskforce on Nature-related Financial Disclosures (TNFD) is seeking feedback from industry on the first version of its disclosure framework (TNFD Framework), which it published on 15 March 2022.

The TNFD was formally launched in June 2021 with support from a wide range of corporate, financial, governmental, and supranational organisations.

Building on the success of the taskforce on Climate-Related Financial Disclosures (TCFD), it seeks to deliver a risk management and disclosure framework for organisations to report and act on evolving nature-risks, in order to support a shift of global financial flows away from nature-negative outcomes towards nature-positive outcomes.

The first version of the TNFD Framework is made up of three elements:

• An outline of fundamental concepts and definitions for understanding nature that the TNFD recommends market participants use in their assessment and disclosure of nature-related risks and opportunities.
• Draft disclosure recommendations for nature-related risks and opportunities. These are aligned with the TCFD guidance.
• A "beta" version of guidance for companies and financial institutions on how to approach the integrated assessment of nature-related risk and opportunity.

What's next?

Market participants and other stakeholders are invited to provide comments on the draft TNFD Framework through an interactive online platform. The next versions of the TNFD Framework are expected to be released through 2022 and 2023, in time for the launch of the final recommendations in September 2023.