The Taskforce on Nature-related Financial Disclosures (TNFD) is an initiative aimed at helping businesses and financial institutions to assess and report on their dependencies and impacts on nature. Launched in July 2021, TNFD is modeled after the successful Task Force on Climate-related Financial Disclosures (TCFD), which was created by the Financial Stability Board in 2015 to help companies report on their climate-related risks and opportunities.
The TNFD aims to provide a standardized framework for businesses to assess and report on their impacts on nature and biodiversity, as well as the risks and opportunities associated with these impacts. By doing so, the initiative aims to help businesses and financial institutions make better-informed decisions, allocate capital more efficiently, and ultimately contribute to a more sustainable economy.
The TNFD is made up of a diverse group of stakeholders, including financial institutions, corporations, governments, and civil society organizations. The initiative is currently in the consultation phase, with a public consultation on the development of the framework set to take place in 2022. The final framework is expected to be released in 2023.
The TNFD recognizes that biodiversity and ecosystem services are critical to human well-being and the global economy. However, the rapid loss of biodiversity and ecosystem degradation poses significant risks to businesses and financial institutions, particularly those that rely on natural resources or have operations in areas with high biodiversity.
The TNFD framework will help businesses and financial institutions to identify and assess these risks and opportunities, as well as develop strategies to address them. It will also help to increase transparency and accountability, enabling stakeholders to make more informed decisions and hold companies accountable for their impacts on nature.
The Taskforce on Nature-related Financial Disclosures is an important initiative aimed at helping businesses and financial institutions to assess and report on their impacts on nature and biodiversity. By doing so, the initiative aims to contribute to a more sustainable economy and help to mitigate the risks associated with biodiversity loss and ecosystem degradation.
A TNFD pilot
We are currently piloting our analytical framework and the NbI model with TNFD for one of Reckitt’s key commodities – Latex, where we work with Earthworm Foundation. And are developing a similar pilot on Palm Oil for 2023, where we will be working with the Sumatran Orangutan Society and Earthworm Foundation. This process ensures that our approach is aligned with and informs the evolution of the TNFD LEAP process. For the Latex pilot, we have progressed in all aspects of the LEAP framework and are working on refining our estimates to provide quantitative estimates for Reckitt’s disclosures on risks, dependencies, and opportunities associated with biodiversity impacts at the landscape scale.
Partnering with Global Canopy
For many market participants the assessment of nature-related impacts, dependencies, risks and opportunities within their operations and value chains is nascent. Expert technical support can prove invaluable to aid these corporations in both understanding and implementing elements of the TNFD beta framework. Nature based Insights will work with Global Canopy to provide Analytical support for two in-depth corporate pilots within Global Canopy’s TNFD-Supported piloting program.9 June 2023