Taskforce on Nature-related Financial Disclosures (TNFD)
Climate Impact & Sustainability Data (2023)
Reporting Period: 2023
Environmental Metrics
ESG Focus Areas
- Nature-related risks and opportunities
- Biodiversity
- Ecosystem services
Environmental Achievements
- Developed a risk management and disclosure framework for organizations to report and act on evolving nature-related issues.
Social Achievements
- Developed guidance on engagement with Indigenous Peoples, Local Communities, and affected stakeholders.
Governance Achievements
- Recommended disclosures on board oversight of nature-related issues and management's role in assessing and managing them.
Climate Goals & Targets
Long-term Goals:
- Achieve robust understanding of the importance of nature to financial systems and business considerations by market participants across all sectors and regions.
Medium-term Goals:
- Further develop sector and biome guidance, including sector and biome metrics.
- Support efforts by the ISSB to draw on the TNFD’s recommendations.
Short-term Goals:
- Encourage and scale voluntary market adoption of the TNFD recommendations.
Environmental Challenges
- Lack of widely adopted framework for nature-related metrics and targets.
- Data gaps and inconsistencies in nature-related data.
- Challenges in translating nature-related dependencies and impacts into financial risks and opportunities.
Mitigation Strategies
- Developed a set of recommended indicators and metrics for assessment and disclosure.
- Developed additional guidance on identifying and assessing nature-related issues (LEAP approach).
- Established the Nature-related Data Catalyst initiative to accelerate data solutions.
Supply Chain Management
Responsible Procurement
- Guidance on identifying and assessing nature-related issues in upstream and downstream value chains.
Climate-Related Risks & Opportunities
Physical Risks
- Acute risks (e.g., oil spills, forest fires)
- Chronic risks (e.g., pollution, climate change)
Transition Risks
- Policy risks
- Market risks
- Technology risks
- Reputational risks
- Liability risks
Opportunities
- Resource efficiency opportunities
- Capital flow and financing opportunities
- Market opportunities
- Products and services opportunities
- Reputational capital opportunities
- Ecosystem protection, restoration, and regeneration opportunities
Reporting Standards
Frameworks Used: TCFD, ISSB, GRI, GBF