ISSB congratulates Task Force on Nature-related Financial Disclosures on finalised recommendations

The International Sustainability Standards Board (ISSB) recently congratulated the Task Force on Nature-related Financial Disclosures (TNFD) on the publication of its recommendations during New York Climate Week 2023. The release of the TNFD recommendations is a key milestone because they can help companies communicate their nature-related financial risks and opportunities to shareholders. The ISSB can also use them to inform its future standard-setting for their biodiversity, ecosystems and ecosystem services project.

What are the TNFD recommendations?

Like the Task Force on Climate-Related Financial Disclosures (TCFD) and the ISSB’s Sustainability Disclosure Standards, the TNFD recommendations contain four pillars (governance, strategy, risk management, and metrics and targets) and fourteen recommendations for nature-related issues.

Eleven of these recommendations replicate the TCFD’s similar recommended disclosures. The three additional recommendations for disclosure relate to the following:

• Governance - In their assessment and response to nature-related dependencies, impacts, risks and opportunities – describe the organisation’s human rights policies, engagement activities, and oversight by the Board and management concerning First Nations peoples, local communities and other affected stakeholders
• Strategy – Disclose the priority locations of assets and/or activities in the organisation’s direct operations, including, where possible, upstream and downstream value chains (this is analogous to Scope 3 disclosures for climate reporting in the TCFD)
• Risk and impact management – Describe the organisation’s processes for identifying, assessing and prioritising nature-related dependencies, impacts, risks and opportunities in the upstream and downstream value chains.

Need help?

While your entity may not yet be required to prepare nature-related financial disclosures, you may voluntarily choose to do so, or your customers and suppliers may require this information. Our national team of sustainability experts can help as you embark on your journey to nature-related financial disclosures. Contact us today.