This week saw the publication of the long-awaited Taskforce on Nature-related Financial Disclosures (TNFD) recommendations and guidance.

Following from the success of the TCFD, which has helped expand and standardise the disclosure of climate risks around the world, the TNFD can empower organisations to understand their impacts and dependencies on nature.

According to the TNFD:

• The TNFD Recommendations are a key milestone in the relationship between nature, business and financial capital, positioning nature risk alongside financial, operational and climate risk and helping to shift capital flows to nature-positive outcomes.
• Present and future cashflows depend on the flow of nature’s inputs to business and accelerating nature loss poses a growing risk to businesses and capital providers.
• The publication of 14 recommended disclosures and a suite of additional implementation guidance marks the culmination of a two-year consultative development process, including pilot testing by over 200 companies and financial institutions.
• The Recommendations are consistent with existing and emerging IFRS and GRI reporting standards and aligned with the requirements of the Kunming-Montreal Global Biodiversity Framework.
• Companies including GSK have started to announce their intention to adopt the Recommendations, and the TNFD is anticipating more companies to follow from as early as this week, with other companies invited to join the inaugural cohort of TNFD Adopters, which will be announced at the World Economic Forum at Davos.