Strategic Focus: The Connection Between The TCFD, TNFD And ESG Risk

Executive Summary

Urgent action is needed to prevent rapid biodiversity and nature loss, with over half of the world’s GDP ($58 trillion) highly or moderately dependent on nature – and at risk. Nature is now in the business spotlight, with the final release of the recommendations of the Taskforce for Nature-related Financial Disclosures (TNFD) in September 2023, following investor recognition of the importance of assessing biodiversity risks, impacts and opportunities. In fact, research by the World Economic Forum (WEF) predicts that nature-positive solutions could generate $10.1 trillion in business opportunities and create over 100 million jobs globally by 2030. This report breaks down the challenges associated with nature reporting, outlines the potential business risks, and sets out steps for best practice. Chief sustainability officers (CSOs) and global heads of net zero and climate risk, as well as enterprise risk management professionals, can use the report to understand the key challenges associated with bridging climate and nature for enhanced ESG risk management, as well as the direct business benefits produced by merging climate and nature, and best practices in assessments for successful integration.