TNFD publishes second beta version of the nature-based disclosure framework
Latest iteration of the nature-related reporting framework tackles tension between demand for clear and simple methodology applicable to business models and the complexity of the science.
The Taskforce on Nature-related Financial Disclosure (TNFD) has released the second iteration of its beta framework for nature-related risk reporting. The framework now includes a draft of metrics and targets, as well as information on voluntary pilot testing. The announcement comes three months after the launch of the first beta framework and is built on feedback from market participants.
This is an interactive project. With three beta versions planned ahead of the final release in September 2023, market participants have been involved in drafting the voluntary measurement of nature-related dependencies, impacts, risks and opportunities.
Focus on metrics
With disclosure frameworks, the questions are always the same: What do we report on and how do we measure it?
The TNFD’s second beta version brings clarity to the kinds of metrics available for reporting, related to asset location, state of nature and services. The recommendations push for nature-related target-setting and the measurement of businesses impact on nature realms.
According to the report, market participants explicitly want to keep the framework aligned with pre-existing regulatory development, specifically the science-based target initiative (SBTi) and the International Sustainability Standards Board (ISSB).