The Taskforce on Nature-Related Financial Disclosures (TNFD) today released its beta framework – the first integrated approach to incorporating nature-related risk and opportunity analysis into the heart of corporate and financial decision making. The release marks the start of an 18-month process of consultation and development together with a broad range of market players and stakeholders. By following an open innovation approach, the hope is to accelerate the framework’s development and steadily improve its relevance, usability, and effectiveness before releasing its final recommendations in Q3 2023.
The first beta version of the TNFD framework comprises three components:
- Foundational science-based concepts and definitions, to help market participants understand nature, and nature-related risks and opportunities;
- Draft disclosure recommendations aligned with the recommended disclosures of the Task Force on Climate-related Financial Disclosures (TCFD); and
- A prototype of practical guidance on nature-related risk and opportunity analysis for companies and financial institutions to incorporate into their enterprise risk and portfolio management processes.
An interactive online platform is now live presenting the first beta version of the framework in full and collect feedback. The framework is also available in report form. An Executive Summary is available in English, French, Japanese, Mandarin, Portuguese and Spanish.
A further three iterations of the beta versions are planned for release in June 2022 (v0.2), October 2022 (v0.3) and February 2023 (v0.4). This will culminate in the final release of the TNFD’s recommendations (v1.0) planned for September 2023.
Today, the Taskforce also releases the discussion paper ‘A Landscape Assessment of Nature-related Data and Analytics Availability’. The paper sets out a landscape mapping of data platforms and sources, and two case examples of how data and analytics can be used in the TNFD nature-related risk and opportunity assessment process.
Taskforce invites market participants to review & test the framework
There are several ways market participants and other stakeholders can test and provide feedback on the first beta version of the TNFD framework:
- Organisations can review and comment on the draft framework, as well as the data discussion paper, on the TNFD online platform and provide feedback using its feedback functions. Early feedback over the next 45 days is especially welcome from corporates, financial institutions and regulators.
- Corporates and financial institutions keen to explore how the TNFD framework might apply in their specific organisational context can pilot test the framework independently and, in some cases, through industry collaborative efforts outlined on the TNFD online platform. Pilot testing of the beta Framework will commence on 1 June 2022.
- Based on the feedback provided by market participants, the TNFD will then convene Focus Group discussions – around key emerging themes, or by geography or sector – to engage feedback providers in further detail.
The TNFD’s open consultation period will continue until 30 June 2023. Organisations can provide feedback on this first beta version, as well as subsequent beta versions planned for release in June 2022, October 2022 and February 2023.
Learn more about how to provide feedback and co-create the TNFD framework.
UNEP FI is one of the four founding partners of the TNFD, sits on the stewardship council, and is aiding the implementation of the framework through pilot projects.