TNFD releases final recommendations with 14 nature-related disclosures

The TNFD released its final recommendations with 14 disclosures across four pillars to help organisations assess and report nature-related risks, impacts, and dependencies. The voluntary framework aligns with the Kunming-Montreal Global Biodiversity Framework, signalling to Indian companies that nature disclosure will increasingly accompany climate reporting.

The Taskforce on Nature-related Financial Disclosures (TNFD), developed with organisations including Business for Nature, Capitals Coalition, CDP, UNEP-FI, UN Global Compact, WBCSD, and the World Economic Forum, released its final recommendations to guide organisations in identifying, assessing, managing, and disclosing material nature-related issues. The recommendations include 14 recommended disclosures across four pillars: Governance, Strategy, Risk & Impact Management, and Metrics & Targets, aligning with global policy objectives and international sustainability reporting standards while being grounded in science.

The recommendations affect businesses and financial institutions across sectors facing nature-related risks, opportunities, and dependencies, and support alignment with the Kunming-Montreal Global Biodiversity Framework's corporate reporting Target 15, under which companies and financial institutions are required to assess and disclose nature-related risks, impacts, and dependencies by 2030. The voluntary framework helps organisations comprehensively address dependencies, impacts, risks, and opportunities, addressing historical slow disclosure caused by regulatory gaps and a prior lack of appropriate tools and data.

Organisations should begin adoption now and progressively enhance disclosure, using improving nature-related tools, metrics, and data to identify and assess issues. The TNFD acknowledges that understanding significance, gathering information, and conducting analyses will take time and resources, but practices will evolve rapidly along the adoption pathway. Companies and financial institutions can integrate the 14 disclosures into reporting to align with emerging regulatory requirements and the 2030 Global Biodiversity Framework disclosure expectations under Target 15.

Key figure — Disclosure structure: 14 recommended disclosures across four pillars