A group of organizations, including Business for Nature, Capitals Coalition, CDP, Finance for Biodiversity Foundation, UN Environment Programme – Finance Initiative, UN Global Compact, World Business Council for Sustainable Development, and the World Economic Forum, have collaborated to develop essential recommendations for businesses to manage and report their nature-related risks and impacts.
These recommendations released yesterday, called TNFD Recommendations, aim to guide various organizations in identifying, assessing, managing, and disclosing their material nature-related issues. The goal is to align with global policy objectives and international sustainability reporting standards while being grounded in science. These recommendations are designed to be practical for organizations worldwide, allowing them to start now and progressively enhance their disclosure efforts.
The TNFD Recommendations are an essential step towards aligning with the Kunming-Montreal Global Biodiversity Framework’s corporate reporting target (Target 15), where companies and financial institutions are required to assess and disclose their nature-related risks, impacts, and dependencies by 2030.
The degradation of nature presents significant risks and opportunities for businesses and finance, necessitating a shift towards understanding and disclosing nature-related issues. Historically, organizations have been slow to disclose these aspects due to regulatory gaps and a lack of appropriate tools and data. However, the evolving landscape of nature-related reporting standards and the advancement of tools and data availability are changing this scenario.
The TNFD Recommendations provide a voluntary framework for organizations to disclose their nature-related issues, aligning with global sustainability reporting standards and emerging regulatory requirements. The landscape of nature-related tools, metrics, and data is improving, offering organizations the means to identify and assess nature-related issues using the data and tools available today.
The TNFD Recommendations come with 14 recommended disclosures categorized into four pillars: Governance, Strategy, Risk & Impact Management, and Metrics & Targets. These disclosures help organizations to comprehensively address and manage their nature-related dependencies, impacts, risks, and opportunities.
As organizations embark on their adoption pathway for the TNFD Recommendations, practices and techniques will evolve rapidly. The TNFD recognizes that understanding the significance of nature-related issues, gathering necessary information, and conducting relevant analyses will take time and resources. However, with the support of these recommendations and the evolving landscape, organizations can make strides in addressing nature-related risks and disclosures.
This collaborative effort strives to encourage widespread adoption of these practical recommendations, emphasizing the importance of integrating nature-related considerations into business practices and reporting for a sustainable future.