The Taskforce on Nature-related Financial Disclosures (TNFD) was developed through combined efforts from multiple global partnerships focused on enhancing financial system awareness and mitigation of nature-related risks and opportunities. The TNFD’s primary objective is to provide risk management and disclosure frameworks for nature-related issues. Its recommendations are designed to assist organisations in identifying, assessing, responding to, and disclosing their nature-related dependencies, impacts, risks, and opportunities. These recommendations align with global policy goals and international sustainability reporting standards and are informed by the latest science. The TNFD enables organisations across jurisdictions to progressively enhance their disclosure ambition over time. The TNFD’s goal is to support a shift in global financial flows away from activities that harm nature toward activities that yield positive outcomes for nature.

The TNFD recommendations add six general requirements to the ISSB’s IFRS-S1 Standard. Report preparers publicly endorsing TNFD’s recommendations are expected to apply these general requirements for consistent information disclosure across all four pillars: governance, strategy, risk and impact management, and metrics and targets. These requirements cover materiality application, disclosure scope, location of nature-related issues, integration with other sustainability disclosures, time horizons, and engagement with Indigenous Peoples, Local Communities, and affected stakeholders in identifying and assessing nature-related issues. This report further outlies the foundations for understanding nature’s impact on business and provides guidance for measuring nature-related dependencies, opportunities, risks and impacts.

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