TNFD publishes fourth and final draft framework on nature-related risks

The Taskforce on Nature-related Financial Disclosures (TNFD) has published its fourth, and final, draft framework for the management and disclosure of nature-related risks and opportunities (see TNFD press release). 

The consultation closes on 1 June and the final version of the TNFD framework is expected to be published in September 2023. 

According to the TNFD, market participants can now, for the first time, view a full representation of the framework, including the Taskforce’s proposed approach to disclosure metrics. The TNFD says it has made minor adjustments since the last release to its proposed risk and opportunity assessment process and reduced its proposed recommended disclosures from 15 to 14 based on feedback. For more information on the previous TNFD draft, see our previous blog post.  

All businesses will be "strongly encouraged” by the TNFD to disclose all 14 metrics, where relevant, on a “comply or explain” basis. The metrics should enable organisations to report in line with global policy goals of the COP15 biodiversity conference (see our previous blog post).

The TNFD has also released draft guidance on engagement with affected stakeholders; and draft guidance for four sectors: agriculture & food; mining & metals; energy; and financial institutions. Sector and biome guidance, including relevant disclosure metrics for each sector, are being made available through the TNFD’s online platform. Additional sector and biome guidance will be released in the coming months on a rolling basis. 

The TNFD has also published a hypothetical case study with a fictional bank that is struggling to report in line with the draft recommendations.