TNFD launches final beta framework

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This release marks the fourth (v0.4) and final draft of the Taskforce on Nature-related Financial Disclosures (TNFD) beta framework, offering the market, for the first time, the opportunity to view the Framework and recommendations in full. This includes examples of additional guidance by sector and biome.

All three core components can be viewed and explored:

  1. Concepts and definitions
  2. The LEAP approach for assessment and management of nature-related risks and opportunities
  3. The TNFD’s recommended disclosures
The v0.4 executive summary sets out the key updates. To help organisations understand, engage, and navigate the full and final beta framework release, the Taskforce has made significant developments to the framework site. You can now set sector and biome preferences in the new digital Dashboard tool which will filter additional guidance relating to your relevant sectors and biomes. Please note, the v0.4 release does not include additional guidance for all sectors and biomes. The Taskforce will publish more guidance in June – September 2023.

Recommended disclosures

The recommended disclosures in v0.4 retain the four-pillar structure of the Taskforce on Climate-related Financial Disclosures (TCFD) and carry over all 11 TCFD recommended disclosures into the TNFD recommended disclosures. This provides consistency and enables report users to begin integrating nature- and climate-related issues. Updates include: an updated set of general requirements, a final proposed set of 14 TNFD recommended disclosures and accompanying implementation guidance and an adapted approach to incorporate value chain impacts.

Draft disclosure metrics

In this final draft (v0.4) of the beta framework, the Taskforce sets out draft disclosure indicators and metrics across all nature-related issues, to support comparability across and within sectors. These comprise of:

  • A small set of core metrics
    • Core global metrics, which cover all sectors
    • Core sector metrics, which are sector-specific
  • Additional metrics, which can be used flexibly based on specific considerations for the business, sector, biome and/or location

Updates to the LEAP approach

This v0.4 release includes updates and additions to LEAP guidance in response to feedback received from market participants and pilot testers, including

  • updated scoping questions for corporates, following a similar structure to the scoping questions for financial institutions.
  • updated its guidance on the Locate phase of LEAP with a revised set of criteria for identifying priority locations.
  • new guidance on metrics to assess responses to nature-related dependencies, impacts, risks and opportunities.
  • new guidance on three methods for assessing nature-related risks using the LEAP approach

Approach to target setting

The TNFD recommends that corporates setting targets as part of their application of the TNFD framework (a) set science-based targets for nature using cross sector frameworks under development such as the Science Based Targets Network (SBTN) framework and (b) align with the TNFD disclosure metrics, the Global Biodiversity Framework’s monitoring framework and other international treaties and global policy goals.

In the v0.4 release, the TNFD has published draft guidance on target setting that provides:

  • A discussion of the considerations an organisation should take into account when setting targets for nature;
  • Target design features that can help ensure that targets best support an organisation’s wider impact and risk management objectives; and
  • Illustrative examples of targets an organisation might set that would align with TNFD metrics and the Kunming-Montreal Global Biodiversity Framework (GBF).

Approach to scenario analysis

The TNFD has developed a practical and modular toolbox on scenario analysis that includes guidance and practical tools, templates and methods. The toolbox approach reflects the identified need for flexibility and adaptability for different kinds of organisation, as well as feedback that climate-related scenario analysis has been challenging for many organisations.

Additional guidance by sector and biome

This release includes draft disclosure metrics for: financial institutions, agriculture and food, and tropical forests. Further additional guidance will follow over the coming months, to be published on the framework site. An initial set of additional guidance in the v0.4 beta release covers four sectors (financial institutions, agriculture and food, mining and metals, and energy) and four biomes.

Approach to stakeholder engagement

The Taskforce recognises that nature-related issues require consideration of affected stakeholders. The TNFD has developed draft practical guidance for market participants. on engagement with affected stakeholders. The TNFD has consulted widely and partnered with the International Union for Conservation of Nature (IUCN) to engage with representatives of Indigenous Peoples and Local Communities to leverage their knowledge and provide their voice and perspective to help design and develop this aspect of the TNFD framework.

The road ahead

The Taskforce will now work on additional elements to complete its package of final recommendations, including further additional guidance by sector and biome; development of case studies and use cases; compiling lessons learned from piloting; further development of the scenarios guidance and toolkit; consideration of guidance on transition plans; and development of guidance on linkages between climate and nature.