Have you heard of the Taskforce on Nature-related Financial Disclosures (TNFD)? If you haven’t, you’re bound to soon – it’s the leading global framework for assessing and reporting on nature-related risks and opportunities. TNFD exists to bridge the gap between finance and nature, it’s been designed to help organisations recognise and address the impacts of their activities on biodiversity and ecosystems 🌳🌊🦋

It was launched in 2021 and since then has grown rapidly, with 320 companies having committed to start making nature-related disclosures based on the framework at the start of 2024. It’s a voluntary framework, for now, but could become a market standard (like the TCFD has become). Companies of all sizes, from SMEs to large corporations, can benefit from starting TNFD implementation as it helps integrate biodiversity considerations into their business strategies, promoting long-term sustainability and resilience.

TNFD adoption is being driven by a combination of factors, including growing pressure from customers, investors, and other stakeholders:

✽ Investors are increasingly recognising the importance of nature-related risks and opportunities in their investment decisions, pushing companies to disclose their impact on nature for better-informed investment choices.

✽ Customers are becoming more environmentally conscious and are inclined to support businesses that demonstrate a commitment to sustainable practices.

✽ Regulatory bodies and international organisations are advocating for standardised reporting on sustainability, including nature-related financial risks, contributing to the momentum behind TNFD adoption.

TNFD focuses on two key components: assessing nature-related risks and recognising opportunities 🔍 These elements form the backbone of the framework, guiding businesses towards responsible practices.

Swipe through to learn more about the TNFD’s Recommended Disclosures across the 4 pillars of the framework.

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#nature
#biodiversity