A draft “Nature-Related Financials” framework to consider
Here’s a note from the Taskforce on Nature-related Financial Disclosures:
Today TNFD releases the first beta version of an integrated nature-related risk management & disclosure framework for market consultation.
This first prototype of the TNFD framework is an important first step by the market to tackle the risk of #nature loss to the global economy and reduce their impacts on nature.
Building on existing standards, metrics and data, TNFD’s first beta version of the framework includes three core components:
– A set of fundamental concepts and definitions for understanding nature and nature-related risks
– A draft set of recommended nature-related disclosures that are closely aligned with the disclosures for climate-related risks produced by the FSB Task Force on Climate-related Financial Disclosures (TCFD)
– Prototype guidance for corporates and financial institutions to support their internal assessments of nature-related risks and opportunities
Now, TNFD moves into an 18-month open innovation process of consultation and development together with a broad range of market players and stakeholders. This iterative approach based on market testing will help ensure the TNFD’s final recommendations, which will be released in Q3 2023, are relevant, usable and effective.
Following the release a first beta version v0.1 of the framework in March 2022, a further three iterations of the beta versions are planned – June 2022 (v0.2), October 2022 (v0.3) and February 2023 (v0.4).
The Taskforce now invite market participants from across the globe and a wide range of sectors to explore the framework prototype and provide feedback via the TNFD’s new online platform.