About the TNFD
Financial institutions and companies are still missing information needed to understand how nature impacts immediate financial performance or the longer-term financial risks that may arise from the organisation’s interactions with nature. Better information will play a key role in allowing financial institutions and companies to incorporate nature-related risks and opportunities into their strategic planning, risk management and asset allocation decisions.
The Taskforce on Nature-related Financial Disclosures (TNFD) is developing a risk management and disclosure framework for organisations to report and act on evolving nature-related risks, with the ultimate aim of supporting a shift in global financial flows away from nature-negative outcomes and toward nature-positive outcomes. UNEP FI is a founding partner of the TNFD, the beta-framework of which was released in March 2022, with the final development scheduled for 2023. For more on the TNFD, click here.
Pilot Testing with Financial Institutions
UNEP FI is leading the financial sector pilots, testing the beta-framework with financial institutions across geographies and sectors to ensure it meets the ambitious needs of the market. The pilot will invite financial institutions to participate in the design of the TNFD framework, providing lessons learned, recommendations and insights for future iterations.
The testing of the TNFD Framework started in June 2022, following the ‘open innovation approach’, in which the subsequent beta releases of the TNFD Framework will be piloted by financial and non-financial organisations. Some pilots might also engage central banks, market-makers (e.g exchanges, data providers), government agencies and relevant financial regulators.
Ongoing market feedback will support the further design and development of the TNFD recommendations due in September 2023.