TNFD releases the fourth and final framework

On March 28, 2023, the Taskforce on Nature-related Financial Disclosures (TNFD) released the fourth and final beta framework, with the following changes:

• It streamlined the 3,000 nature-related metrics identified in 2022 and established ‘core global’ and ‘core sector’ disclosure metrics.
• It adapted the notion of ‘Scopes’ (Scopes 1-3 in climate reporting) to the nature context as ‘direct’ operations, ‘upstream’, ‘downstream’ and ‘financed’.
• It introduced modified priority location screening criteria, allowing large companies to prioritize their focus for analysis.
• It included new draft guidance for sectors (agriculture, food, energy, and mining and metals). Guidance for other sectors (forestry, aquaculture, infrastructure and real estate, textiles and apparel, and chemicals and pharmaceuticals) will be published by September.

The Taskforce on Nature-related Financial Disclosures (TNFD) has released its fourth and final beta framework for managing and disclosing nature-related risks. This release includes the full representation of the framework, including the Taskforce's proposed approach to disclosure metrics. The TNFD has received support from over 1,000 organizations and has conducted pilot testing of the draft framework across different sectors and countries. Feedback has endorsed the core elements of the framework, and minor adjustments have been made based on suggestions. The TNFD framework aligns with the four pillars of the Task Force on Climate-related Financial Disclosures (TCFD) and incorporates all 11 of the TCFD recommended disclosures. The framework is not a standard but draws from relevant standards such as those from the International Sustainability Standards Board (ISSB) and the Global Reporting Initiative (GRI). The final draft includes a tiered approach to disclosure metrics, providing flexibility and comparability across sectors. The TNFD has also released draft guidance on stakeholder engagement and specific guidance for sectors and biomes. The final recommendations will be published in September 2023 after a consultation process. The TNFD aims to make nature-related reporting a standard business practice with the collaboration of standards development partners and regulators.