The Taskforce on Nature-related Financial Disclosures (TNFD) was announced in July 2020, and formally launched in June 2021. Recognising our global economic reliance on nature, the TNFD was formed as a twin to the Taskforce on Climate-related Financial Disclosures (TCFD) with the intention of providing recommendations and guidance for companies to report on nature-related issues within their value chains. The final recommendations were released in September 2023, and are aligned with the Kunming-Montreal Global Biodiversity Framework to provide companies with a standardised reporting format that recognises a global baseline for sustainability.
To support consistency across the landscape of voluntary initiatives, the TNFD recommendations build on the International Sustainability Board’s Sustainability Standards. Like the TCFD, the TNFD is centred around 4 key thematic pillars, with 14 recommended disclosures grouped under the pillars.
The key thematic groupings and their related disclosures can be seen in the graphic below:
Image: Recommendations of the Taskforce on Nature-related Financial Disclosures, September 2023, p. 47.
The Australian Government supports the TNFD as a strategic funding partner, and as a member of the TNFD Stewardship Council. A pilot case study project recently concluded, which looked at the possibility of incorporating the TNFD recommendations into Australia sustainability reporting requirements. The results of this project are available on the Department of Climate Change, Energy, the Environment and Water’s website here.
