Strategic Focus: The Impact Of The TNFD On ESG Reporting
20 May, 2024
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Executive Summary
There is currently no universally agreed global architecture for the measurement and disclosure of nature-related impacts comparable to the Greenhouse Gas Protocol, and organizations have historically undervalued the importance of biodiversity and nature for stable business operations and decarbonization efforts. Data from CDP reveal a stark gap in board-level oversight. While 91% of financial institutions have board-level supervision of climate-related matters, only 32% exercise board oversight on issues related to forests and/or water. The Taskforce on Nature-related Financial Disclosures (TNFD) is gaining significant market awareness as investors and businesses begin to recognize the importance of assessing nature- and biodiversity-related impacts, dependencies, risks and opportunities. This report provides an overview of the TNFD framework, contextualizing it within existing disclosure frameworks, and explores how it will impact reporting processes across different industries. Chief sustainability officers and global heads of biodiversity should use this report to inform their TNFD compliance strategies.
Nature-related risks shift to a C-Level priority
The TNFD was established to facilitate a change in organizations’ mindset and behaviour
TNFD guidelines draw upon and support existing sustainability frameworks and target-setting initiatives
Scaling market adoption of the TNFD requires sector-specific guidance, recognizing unique industry challenges
The TNFD was established to facilitate a change in organizations’ mindset and behaviour
TNFD guidelines draw upon and support existing sustainability frameworks and target-setting initiatives
Scaling market adoption of the TNFD requires sector-specific guidance, recognizing unique industry challenges
Figure 1. Key outcomes from a LEAP assessment
Figure 2. The global nature reporting landscape
Figure 3. Key stakeholders for a mining organization
Figure 2. The global nature reporting landscape
Figure 3. Key stakeholders for a mining organization
Fauna & Flora International, Task Force on Climate-related Financial Disclosures (TCFD), CDP, GIST Impact, Workiva, European Financial Reporting Advisory Group (EFRAG), International Organization for Standardization (ISO), Global Reporting Initiative (GRI), International Sustainability Standards Board (ISSB), NatureAlpha, Taskforce on Nature-related Financial Disclosures (TNFD), World Economic Forum, Mirova, European Commission, Greenhouse Gas Protocol, Science Based Targets Network (SBTN), Crédit Agricole, COSO, Iceberg Data Lab, WWF, SCOR, Anglo American, ESG Playbook, Envizi, BNP Paribas, IBM, Sustainability Accounting Standards Board (SASB), Science Based Targets initiative (SBTi), Clarity AI, Climate Disclosure Standards Board (CDSB), Convention on Biological Diversity, I Care, Aldersgate Group, GSK
About the Authors
Luke Gowland
Senior Analyst
Luke is a Senior Analyst at Verdantix, specializing in ESG and sustainability reporting software and financial ESG. He advises both technology buyers and software vendor and s…
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Kim Knickle
Research Director
Kim Knickle is a Research Director at Verdantix, bringing more than two decades of analyst experience to the evolving world of sustainability. Her current research spans ESG a…
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