TNFD publishes recommendations on management of nature-related risks and associated disclosures

Keywords: Mazars, Thailand, Nature-related, Financial, Disclosure, Sustainability, ISSB 

On 18 September, the TNFD (Task Force on Nature-related Financial Disclosures) published 14 recommendations to help companies and financial institutions to (i) manage their nature-related dependencies, impacts, risks and opportunities and (ii) voluntarily disclose information on how these are managed.  

Eleven of the recommendations are based on those of the TCFD (Task Force on Climate-Related Financial Disclosures) and an additional three relate specifically to nature. The 14 recommendations also use the TCFD’s four-pillar structure: (i) governance; (ii) strategy; (iii) management of impacts, dependencies, risks and opportunities; and (iv) metrics and targets.  

They are consistent with (i) the ISSB Sustainability Disclosure Standards and (ii) the European Sustainability Reporting Standards (ESRS), as well as (iii) the impact materiality approach set out by the GRI (Global Reporting Initiative). The ISSB and EFRAG (the European Financial Reporting Advisory Group) have both acknowledged this high level of alignment, as well as the TNFD’s contribution to understanding nature-related impacts, risks and opportunities. The ISSB will draw on the TNFD’s work when developing its own framework, which will eventually cover biodiversity, ecosystems and ecosystem services.  

To help organisations implement these recommendations, the TNFD has published additional guidance, particularly on using the LEAP approach (Locate, Evaluate, Assess, Prepare) to assess risks, carry out scenario analysis and set nature-related targets.   

For more details, see Mazars’ guide to these recommendations and their implications for companies.