First iteration of the TNFD framework released for public comment
Geneva/London, March 15: The Task Force on Nature-Related Financial Disclosures (TNFD) today released the beta version (“version 0.1”) of its risk management and disclosure framework for nature-related risks and opportunities. Version 0.1 of the TNFD framework is open for public comment following TNFD’s open innovation approach.
TNFD, the World Business Council for Sustainable Development (WBCSD) and other TNFD partners are seeking market participants to provide feedback on this first iteration of the framework and to continue to work with TNFD and its partners to pilot and test the framework. The prototype framework marks the start of an 18-month consultation and development process with a wide range of market players and stakeholders before the publication of the task force’s final recommendations at the end of 2023.
15 of the 34 members of the TNFD working group are WBCSD member companies, which are celebrating the release of version 0.1 of the framework as a first step towards supporting a standardized way to communicate and demonstrate company action on nature.
The WBCSD has supported the TNFD alongside 12 other leading science and industry bodies as a knowledge partner of the TNFD by showcasing the experiences and expertise of WBCSD members in developing credible strategies and operations across value chains, as well as in establishing risk management and disclosure practices consistent with TCFD recommendations. The WBCSD will liaise with real economy actors and financial institutions to help pilot the TNFD framework within the WBCSD work streams of action for nature and redefining value, essential elements of its 2022-2027 strategy.
“At Nestlé, we are committed to contributing to a just transition towards regenerative food systems at scale. That’s why we support TNFD’s work to help organizations better understand their dependencies and nature-related risks and welcome this first iteration of the framework. mentioned Alison Bewick, Head of Group Risk Management, Nestlé SA
“The TNFD beta framework is another important step towards completing the picture of financial institutions on nature-related risks and opportunities,” said Nora Ernst, Senior Sustainability Risk Officer, Swiss Re.
The first beta version of the TNFD framework consists of three components:
- Basic guidance, including key scientific concepts and definitions, to help a wide range of market players understand nature and nature-related risks and opportunities;
- Disclosure recommendations aligned with the approach and language of the climate-related guidelines developed by the Task Force on Climate-Related Financial Disclosures (TCFD); and
- Practical guidance on analyzing nature-related risks and opportunities for businesses and financial institutions to consider integrating into their enterprise risk and portfolio management processes.
Recognizing the links between climate change and nature loss, TNFD’s disclosure recommendations build on the work done by the TCFD, adopting the same four pillars and aligning its high-level disclosure recommendations as much as possible. . It is a response to calls from market players for a consistent approach and language in sustainability reporting.
The beta framework is also designed for future alignment with the global benchmark for sustainability standards being developed by the International Sustainability Standards Board (ISSB) while providing flexibility for organizations that want or need to report on different sustainability thresholds. materiality and regulatory requirements.
Dependencies and impacts on nature are inherently local, which is why consideration of location is an important feature throughout the TNFD framework. The beta version of the framework features new location-specific disclosure and provides guidance on how market participants can begin to integrate location-based nature dependencies, impacts and risks into their processes enterprise and portfolio risk management.
Three more iterations of beta releases are planned for June 2022 (v0.2), October 2022 (v0.3), and February 2023 (v0.4). This will culminate in the final release of the TNFD Recommendations (v1.0) scheduled for September 2023.