ESG Emerging Regulations & Standards

Task ForceForce on Nature-related Financial Disclosures (TNFD) Framework

T3 offers specialized assistance in aligning your business with the TNFD framework, helping you disclose nature-related financial risks in an era increasingly focused on biodiversity and sustainable natural resource use.


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Overview of Topic

The Task Force on Nature-related Financial Disclosures (TNFD) framework is gaining traction as businesses increasingly recognize the financial implications of nature-related risks. T3’s expertise in aligning with TNFD is vital, especially considering that, as per the World Economic Forum, over half of the world’s GDP is moderately or highly dependent on nature. This framework is crucial for businesses in sectors like agriculture, mining, and energy, where sustainable management of natural resources can significantly impact long-term profitability and risk management. This aligns with increasing global focus on biodiversity and sustainable use of natural resources.

Here’s an in-depth look at the TNFD framework:

  • Framework Overview: The TNFD aims to provide a framework for companies to report and act on evolving nature-related risks. It seeks to help businesses measure and understand their impacts on and dependencies on nature, similar to how the TCFD framework does for climate-related risks.
  • Economic Dependency on Nature: According to the World Economic Forum, over half of the world’s GDP is moderately or highly dependent on nature. This highlights the critical importance of nature in supporting economic activities, and the risks to businesses and economies if natural systems are degraded.
  • Key Sectors Affected: The framework is particularly crucial for sectors such as agriculture, mining, and energy, where the direct impacts and dependencies on natural resources are most pronounced. Sustainable management of these resources is key not only for the environment but also for the long-term profitability and risk management of businesses in these sectors.
  • Nature-Related Risks: These include risks associated with the loss of biodiversity, ecosystem services degradation (such as pollination, water purification), and natural capital depletion. These risks can lead to supply chain disruptions, regulatory changes, and shifts in market preferences, directly affecting business operations and financial performance.
  • Biodiversity and Sustainable Resource Use: The framework aligns with the increasing global focus on biodiversity conservation and the sustainable use of natural resources. By understanding their impacts and dependencies on nature, companies can develop strategies that contribute to conservation efforts while mitigating risks.
  • Disclosure and Reporting: The TNFD encourages comprehensive reporting on how companies are exposed to and are managing nature-related risks. This includes disclosing dependencies on ecosystem services, impacts on biodiversity, and steps taken to mitigate negative impacts.
  • Investor and Stakeholder Interest: As investors and other stakeholders become increasingly aware of nature-related risks, the TNFD framework provides a standardized approach to reporting that can inform investment decisions and stakeholder engagement.
  • Regulatory Trends: As with climate disclosures, there is a growing trend in regulatory environments worldwide to incorporate nature-related risk disclosures. Companies aligned with the TNFD framework will be better prepared to meet these evolving regulatory requirements.
  • Long-term Business Resilience: By integrating nature-related risk management into their strategies, companies not only contribute to environmental sustainability but also ensure their own long-term resilience and adaptability in a rapidly changing world.
  • Global Implications: The TNFD is part of a broader movement towards integrating environmental considerations into financial decision-making, recognizing the interconnectedness of economic activities and the natural world.

The TNFD framework represents a significant step forward in expanding corporate risk disclosure and management beyond climate to include a broader range of environmental issues. By embracing this framework, businesses can not only mitigate risks but also capitalize on opportunities related to nature conservation and sustainable resource use, positioning themselves as leaders in a global economy increasingly focused on sustainability.

Significance in Today's Landscape

With the escalating environmental crisis, TNFD reporting is vital for transparency in how businesses impact and are affected by nature. This also aligns with evolving global sustainability goals. After two years of design and development through an open innovation process, the TNFD has published in September 2023 its final Recommendations for nature-related risk management and disclosure. An accompanying suite of additional guidance has also been released to help market participants get started with integrated assessment and corporate reporting related to nature. The Recommendations aim to inform better decision making by companies and capital providers, and ultimately contribute to a shift in global financial flows toward nature-positive outcomes and the goals of the Kunming-Montreal Global Biodiversity Framework.

It’s important to start focusing on the Taskforce on Nature-related Financial Disclosures (TNFD) today because:

Risk Management and Decision Making: The TNFD’s final recommendations provide crucial guidance for managing nature-related risks and making informed decisions. These recommendations aim to direct global financial flows towards nature-positive outcomes, aligning with the Kunming-Montreal Global Biodiversity Framework’s goals.

Global Involvement and Relevance: The initiative, led by task force members managing over $20 trillion in assets and drawing input from stakeholders in almost 60 countries, highlights its global importance and relevance.

Alignment with Existing Standards: The TNFD’s recommendations are built on the framework established by the Task Force on Climate-related Financial Disclosures (TCFD) and align with standards of the International Sustainability Standards Board (ISSB) and Global Reporting Initiative (GRI). This ensures consistent reporting across jurisdictions and materiality approaches.

Urgency of Addressing Nature Loss: Nature loss is accelerating, and businesses currently lack adequate accounting for nature-related dependencies, impacts, risks, and opportunities. The TNFD provides tools to address these issues effectively.

Integration with Corporate Reporting Requirements: The TNFD’s alignment with Target 15 of the Global Biodiversity Framework ensures that companies can integrate nature-related risks and impacts into their corporate reporting, paralleling climate-related issues.

Market Adoption and Momentum: With the TNFD encouraging voluntary adoption of its recommendations and tracking this annually, there’s a growing momentum for businesses and financial institutions to disclose their exposure to nature-related issues, with companies like GSK already committing to publish TNFD disclosures.

Focusing on TNFD today enables companies to be proactive in managing nature-related risks, aligning with global sustainability goals, and staying ahead in the evolving landscape of corporate environmental responsibility.


TNFD is currently more oriented towards early adopters, such as businesses in agriculture, forestry, mining, and energy sectors, as well as financial institutions with investments in these areas. While not yet mandatory, these entities are encouraged to voluntarily assess and disclose nature-related risks and opportunities, paving the way for potential future regulatory requirements.

Asset Managers
Commodity Houses

How Can We Help?

T3 can assist you in various ways:


Risk Identification

Identifying and categorizing nature-related risks impacting your business. As there is a large overlap with TCFD, chances are that you do not need to start from scratch. T3 can help you look at the data you have already collected (or are going to collect for other disclosure requirements) and identify where additional data is required.


Strategic Alignment

Guiding the alignment of your business strategy with nature risk findings and TNFD recommendations. T3 can help you LEAP; e.g. Locate, Evaluate, Assess, and Prepare, which represents the TNFD’s recommended four-stage process (five stages if the initial scoping stage is included) for managing nature-related risks and opportunities. This framework aims to assist organizations in complying with TNFD disclosure requirements. While serving as a guideline, adhering to LEAP is not mandatory for fulfilling all disclosure criteria. The stages of LEAP don’t have to be followed in order, and not all findings from LEAP assessments are required for public disclosure.


Reporting Framework Development

Developing a robust TNFD-aligned reporting framework tailored to your business needs.

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