The Taskforce on Nature-related Financial Disclosures (TNFD)

The Taskforce on Nature-related Financial Disclosures (TNFD) is an initiative aimed at helping businesses and financial institutions to assess and report on their dependencies and impacts on nature. Launched in July 2021, TNFD is modeled after the successful Task Force on Climate-related Financial Disclosures (TCFD), which was created by the Financial Stability Board in 2015 to help companies report on their climate-related risks and opportunities.

The TNFD aims to provide a standardized framework for businesses to assess and report on their impacts on nature and biodiversity, as well as the risks and opportunities associated with these impacts. By doing so, the initiative aims to help businesses and financial institutions make better-informed decisions, allocate capital more efficiently, and ultimately contribute to a more sustainable economy.

The TNFD is made up of a diverse group of stakeholders, including financial institutions, corporations, governments, and civil society organizations. The initiative is currently in the consultation phase, with a public consultation on the development of the framework set to take place in 2022. The final framework is expected to be released in 2023.

The TNFD recognizes that biodiversity and ecosystem services are critical to human well-being and the global economy. However, the rapid loss of biodiversity and ecosystem degradation poses significant risks to businesses and financial institutions, particularly those that rely on natural resources or have operations in areas with high biodiversity.

The TNFD framework will help businesses and financial institutions to identify and assess these risks and opportunities, as well as develop strategies to address them. It will also help to increase transparency and accountability, enabling stakeholders to make more informed decisions and hold companies accountable for their impacts on nature.

In summary, the Taskforce on Nature-related Financial Disclosures is an important initiative aimed at helping businesses and financial institutions to assess and report on their impacts on nature and biodiversity. By doing so, the initiative aims to contribute to a more sustainable economy and help to mitigate the risks associated with biodiversity loss and ecosystem degradation.

9 April 2023