TNFD & GRI interoperability: Paving the way to unified global reporting standards

In response to market fragmentation and confusion in sustainability disclosure, the Global Reporting Initiative (GRI) and the Taskforce on Nature-related Financial Disclosures (TNFD) have developed a guidance document. This document maps the alignment between TNFD Disclosure Recommendations and GRI Standards, including GRI 101: Biodiversity 2024 and other relevant disclosures. 

The release of the mapping reinforces a shared vision for aligning their standards and frameworks. Additionally, this strong collaboration has resulted in a high level of consistency in the language, approach and definitions of the GRI Standards and the TNFD Recommendations and guidance. 

Regulatory and reporting developments

The GRI is an independent, international organisation dedicated to helping businesses and other entities report their impacts using a universal language. Its GRI Standards, the most widely adopted sustainability reporting standards globally, are developed through a multi-stakeholder process and offered as a free public resource.

On 25 January 2024, the GRI released GRI 101: Biodiversity 2024, an update to its previous Biodiversity Standard. This standard aligns with the TNFD Recommendations issued in September 2023.

The TNFD is a market-driven, science-based initiative, supported by governments and the G20 Sustainable Finance Working Group, launched in June 2021. It provides tools for organisations to address nature-related issues and was funded by various governments and philanthropic foundations.

In September 2023, following a two-year consultation phase, the TNFD published its disclosure recommendations and implementation guidance. These are designed to help businesses and financial institutions assess, report, and manage their nature-related dependencies, impacts, risks, and opportunities in line with Target 15 of the Global Biodiversity Framework (GBF).

The collaboration between TNFD and GRI over the past two years has resulted in significant alignment between the TNFD Recommendations and GRI 101: Biodiversity 2024 in several key areas, including:

• Consistent language and terminology in their guidance
• Agreement on the five direct drivers of nature and biodiversity loss as defined by the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES)
• Integration of the TNFD LEAP approach with the GRI impact materiality approach
• Methods for assessing proximity to ecologically sensitive areas as outlined by TNFD
• Consistent approaches for measuring changes in the state of nature and biodiversity.

Issues covered and scope

Let’s now examine how the TNFD and GRI approaches align and complement each other to enhance sustainability reporting and biodiversity conservation efforts. This comparison will highlight the alignments and differences in handling nature-related reporting and stakeholder engagement.

TNFD approach	GRI approach
Application of materiality
Utilises a flexible materiality approach, recommending financial materiality (ISSB) and impact materiality (GRI) for reporting.	Emphasises impact materiality, focusing on an organisation’s significant impacts on the economy, environment, and people, including human rights
Value chain
Requires companies to assess and disclose nature-related issues across their entire value chain, including upstream and downstream activities. This includes identifying material issues and acknowledging data limitations.	It covers the full value chain, with GRI 101: Biodiversity 2024 specifying reporting on significant biodiversity impacts within the organisation’s value chain.
Location of nature-related disclosures
It stresses the importance of geographic location in assessing and reporting nature-related issues, encouraging detailed and precise geolocation over time.	Requires reporting on sites with significant biodiversity impacts and their proximity to ecologically sensitive areas, with location-specific information for significant impacts.
Engagement with Indigenous peoples, local communities, and affected stakeholders
It recommends engaging with affected stakeholders, including Indigenous Peoples and Local Communities (IPLCs), for nature-related issues and provides additional guidance for such engagement.	It defines stakeholders broadly, including local communities and Indigenous Peoples, with a general focus on stakeholder engagement as outlined in GRI 2: General Disclosures 2021 and GRI 101.

 

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