The Taskforce on Nature-related Financial Disclosures, also known as the TNFD, looks at the financial impacts of nature-related changes and how to direct finances towards nature-positive outcomes.
It’s based on what worked well from the Taskforce on Climate-Related Financial Disclosures, or the TCFD, so recommends disclosures to be structured around the same 4 pillars: governance, strategy, risk management, and metrics and targets.
But the TNFD addresses nature and biodiversity loss.
So, businesses must adapt their risk management approach by considering nature in decision making processes.
The TNFD also introduces the dependencies that businesses have on natural resources.
For example, where a business might have risks and opportunities because it is dependent on soil for growing crops.
Participation’s voluntary right now, but the TCFD was also initially voluntary and has since become mandatory for certain businesses in the UK.
So early adoption will help businesses support positive nature outcomes, meet stakeholder expectations, and stay ahead of regulatory compliance as new nature-related issues arise.
