Voluntary Global

TNFD: Taskforce on Nature-related Financial Disclosures

The Taskforce on Nature-related Financial Disclosures (TNFD) provides a risk management and disclosure framework for organisations to report and act on evolving nature-related dependencies, impacts, risks and opportunities. Launched in September 2023, TNFD enables organisations to integrate nature into their strategic planning and risk management.

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Overview

The Taskforce on Nature-related Financial Disclosures (TNFD) was established in 2021 to develop and deliver a risk management and disclosure framework for organisations to report and act on nature-related issues. The final recommendations were released in September 2023. TNFD builds on and aligns with the structure of the Task Force on Climate-related Financial Disclosures (TCFD), extending the approach to cover nature more broadly – including biodiversity, ecosystems, and ecosystem services. With more than half of the world's GDP moderately or highly dependent on nature, organisations face material risks from nature loss. TNFD provides the framework to identify, assess, manage and disclose these risks and opportunities in a consistent, comparable manner.

Key Points

Aligned with TCFD four-pillar structure (Governance, Strategy, Risk Management, Metrics & Targets)
LEAP approach for nature-related risk and opportunity assessment
Covers dependencies on and impacts to nature
Location-specific assessment of nature-related issues
Integrated with ISSB sustainability standards
Sector-specific guidance for high-impact industries

Disclosure Pillars

Key areas of disclosure required under TNFD

Governance

Disclose the organisation's governance arrangements for nature-related dependencies, impacts, risks and opportunities.

Board oversight of nature-related issues
Management's role in assessing and managing nature-related issues
Integration with existing governance structures
Indigenous peoples and local community engagement

Strategy

Disclose how nature-related dependencies, impacts, risks and opportunities affect the organisation's business model, strategy and financial planning.

Nature-related dependencies and impacts across the value chain
Effect on business model, strategy and financial planning
Resilience of strategy under different scenarios
Location-specific considerations

Risk & Impact Management

Disclose processes for identifying, assessing, prioritising and managing nature-related dependencies, impacts, risks and opportunities.

Processes for identifying and assessing nature-related issues
Processes for managing nature-related issues
Integration with overall risk management
Use of the LEAP approach

Metrics & Targets

Disclose the metrics and targets used to assess and manage nature-related dependencies, impacts, risks and opportunities.

Metrics on nature-related dependencies and impacts
Targets and goals for nature-related issues
Performance against targets
Core global and sector-specific metrics

Implementation Timeline

Key dates and milestones for TNFD compliance

September 2023

TNFD Recommendations Released

Final TNFD recommendations published, providing a comprehensive framework for nature-related disclosures aligned with global sustainability standards.

January 2024

Early Adopters Announced

Over 320 organisations across 46 countries committed to adopting TNFD recommendations, signalling strong market momentum.

2024-2025

Sector Guidance Development

TNFD continues developing sector-specific guidance for industries with significant nature dependencies and impacts.

2025 onwards

Regulatory Integration

Increasing integration of TNFD into regulatory frameworks globally, with several jurisdictions considering mandatory nature-related disclosures.

Key Benefits

Why organisations choose to comply with TNFD

Risk Identification

Identify material nature-related risks before they impact your business, from supply chain disruptions to regulatory changes and reputational issues.

Opportunity Recognition

Discover business opportunities from nature-positive activities, including new markets, products, and services aligned with nature restoration.

Investor Alignment

Meet growing investor expectations for nature-related disclosure. Over $24 trillion in assets under management now support TNFD adoption.

Regulatory Preparedness

Prepare for emerging mandatory nature-related disclosure requirements being considered by regulators globally.

Framework Alignment

TNFD aligns with ISSB standards, GRI, CDP, and other frameworks, enabling efficient integrated reporting on sustainability issues.

Stakeholder Trust

Demonstrate commitment to nature stewardship to customers, communities, and other stakeholders increasingly concerned about biodiversity loss.

Key Stakeholders & Institutions

TNFD Secretariat

Coordinates the development and adoption of TNFD recommendations globally

ISSB

International Sustainability Standards Board - TNFD recommendations align with ISSB standards

CBD

Convention on Biological Diversity - provides the policy context through the Global Biodiversity Framework

SBTN

Science Based Targets Network - partner initiative for science-based targets for nature

CDP

Integrating TNFD-aligned questions into disclosure questionnaires

UNEP FI

United Nations Environment Programme Finance Initiative - supporting financial sector adoption

Frequently Asked Questions

Common questions about TNFD compliance

What is the LEAP approach?

LEAP is TNFD's integrated assessment approach: Locate your interface with nature; Evaluate your dependencies and impacts; Assess your risks and opportunities; Prepare to respond and report. It helps organisations systematically identify and assess nature-related issues across their operations and value chains.

How does TNFD differ from TCFD?

TNFD extends the TCFD approach to cover nature more broadly, not just climate. While TCFD focuses on climate-related risks and opportunities, TNFD addresses dependencies and impacts on biodiversity, ecosystems, and ecosystem services. TNFD uses the same four-pillar structure but adds nature-specific elements like the LEAP approach and location-specific assessment.

Is TNFD disclosure mandatory?

TNFD is currently voluntary, but regulatory momentum is building. France already requires nature-related disclosures under Article 29, and other jurisdictions are considering similar requirements. Early adoption positions organisations ahead of likely mandatory requirements.

What industries are most affected by nature-related risks?

Industries with high nature dependencies include agriculture, food and beverages, forestry, fisheries, construction, textiles, pharmaceuticals, and tourism. However, all industries have some level of nature dependency through their supply chains, making nature-related assessment relevant for most organisations.

How do I start with TNFD?

Start by understanding your organisation's interface with nature using the LEAP approach. Begin with a high-level assessment of your direct operations and immediate supply chain, then progressively deepen your analysis. TNFD provides detailed guidance and tools for each step of the process.

What metrics should we use?

TNFD provides core global metrics applicable to all organisations, plus sector-specific metrics for high-impact industries. Core metrics cover areas like land/freshwater/ocean use change, pollutants, and invasive species introduction. Organisations should also develop context-specific metrics relevant to their priority nature issues.

How does TNFD relate to Australia's reporting requirements?

While Australia's mandatory climate reporting (AASB S2) currently focuses on climate, it's designed to potentially expand to other sustainability topics including nature. Adopting TNFD now prepares Australian organisations for likely future requirements and aligns with the ISSB framework that underpins AASB S2.

Can small businesses use TNFD?

Yes, TNFD is designed to be scalable. Small businesses can start with a simplified assessment focusing on their most material nature interactions. TNFD provides guidance on proportionate disclosure based on organisation size and nature-related materiality.

Key Terminology

LEAP Approach

TNFD's integrated assessment process: Locate, Evaluate, Assess, Prepare - for identifying and managing nature-related issues.

Nature-related Dependencies

Aspects of ecosystem services that an organisation relies on to function, such as water provision, pollination, or climate regulation.

Nature-related Impacts

Changes to the state of nature (positive or negative) that result from an organisation's activities.

Ecosystem Services

The benefits that nature provides to people, including provisioning (food, water), regulating (climate, water quality), and cultural services.

Biodiversity

The variety of life on Earth at all levels, from genes to ecosystems, encompassing the diversity within and between species and ecosystems.

Nature Positive

A global goal to halt and reverse nature loss by 2030, with full recovery by 2050, against a 2020 baseline.

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