The Taskforce for Nature-related Financial Disclosure (TNFD): An expert guide

With the global acceleration of nature loss, businesses are facing increased demand for transparency and accountability regarding their impact on the environment. The Taskforce for Nature-related Financial Disclosure (TNFD) has emerged as a crucial framework providing best-practice guidance for improved strategy, governance, risk management and disclosure in the face of evolving nature-related reporting requirements. This guide aims to equip businesses with a clear understanding of TNFD, its implications, and a strategic roadmap for implementation.

Why TNFD matters

The TNFD framework not only aims for enhanced disclosure but envisions a transformative impact on a company's business model. By fostering good governance, responsible practices, transparency, and collective action, TNFD strives to propel companies to take action and help move our society toward nature-positive outcomes. In this dynamic landscape, early adopters gain a strategic edge, making it imperative for businesses to initiate their TNFD journey promptly.

The TNFD Framework Structure

TNFD revolves around four core pillars:

• Governance: How boards oversee and manage nature-related issues.
• Strategy: Integrating nature-related risks and opportunities into business strategy.
• Risk Management: Processes for identifying, assessing, and managing nature-related risks.
• Metrics & Targets: Key performance indicators and goals for managing nature-related risks.

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The LEAP Framework

Embedded within TNFD is the LEAP framework, guiding companies through the assessment of nature-related dependencies, impacts,  risks and opportunities:

• Locate: Identify business activities interfacing with nature and which will be prioritised
• Evaluate: Identify dependencies and impacts on nature.
• Assess: Identify nature-related risks and opportunities.
• Prepare: Determine the actions and targets to respond to risks and opportunities. Track and prepare disclosures.

Steps for TNFD implementation

The Taskforce on Nature-related Financial Disclosures (TNFD) framework marks a monumental shift in how companies will manage and disclose nature-related risks. Our NatureMetrics guide provides an overview of the key steps to begin aligning your business with TNFD’s recommendations.

How NatureMetrics can help with TNFD reporting

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NatureMetrics offers an end-to-end service to support businesses in their TNFD journey:

• Assess where companies are at in their nature journey and advise on organisations' nature-related governance and strategy
• Double materiality screening of nature-related dependencies, impacts, risks and opportunities
• Establish credible nature-related targets and metrics
• Nature-positive roadmaps and delivery plans
• Mapping business assets and assessing impacts using eDNA and earth observation.
• Setting science-aligned targets and providing monitoring frameworks.
• Translating complex biodiversity data into intuitive metrics through their nature intelligence platform.

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In particular, NatureMetrics can deliver 50% of TNFD recommended metrics, through our product suite and consultancy offering. As new nature-related regulations emerge, businesses proactively aligning with TNFD will gain a strategic advantage. By harnessing NatureMetrics' nature intelligence services, companies can effectively assess, manage, and disclose nature-related risks and opportunities. Contact NatureMetrics today to discuss how they can support your organisation's TNFD implementation journey.

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By taking a systematic approach and getting started now, businesses can navigate the TNFD landscape, assess dependencies and impacts, set strategic priorities, and demonstrate progress to stakeholders, paving the way for a sustainable and nature-positive future.