The Taskforce on Nature-Related Financial Disclosures released its final Recommendations aiming to promote and facilitate the reporting of nature-related risks and opportunities. This initiative also seeks to increase awareness and consideration among businesses and financial institutions regarding their impact on nature, nature-related risks, and the interconnectedness between nature and climate. It consists of 14 key disclosures, organised into four core pillars: governance, strategy, risk and impact management, and metrics and targets. They incorporate the 11 recommended disclosures and introduce three additional areas of focus:
- Engagement: This encompasses human rights policies and engagement activities with indigenous peoples, local communities and other stakeholders.
- Locations: This involves disclosing the locations of assets and/or activities that are either in material locations or sensitive locations, such as areas with high ecosystem integrity or experiencing rapid decline in ecosystem integrity.
- Value Chain Disclosures: This pertains to the methodology for identifying, assessing and prioritising nature-related dependencies, impacts, risks and opportunities across the entire value chain.
The Recommendations were accompanied by additional Guidance on the identification and assessment of nature-related issues: the LEAP approach and specific guidance for financial institutions.
The TNFD encourages voluntary adoption of these Recommendations, with the first adopters to be recognised in January at the World Economic Forum. This initiative promotes transparency and awareness of nature-related financial issues.