The third version introduces several new disclosure recommendations ahead of what is supposed to be a “Paris moment” for biodiversity in Montreal.
By Paul A. Davies, Michael D. Green, James Bee, and Austin Pierce
As environmental ambitions continue to grow, much attention has focused on climate. A key focal lens for that has been the annual Conference of the Parties to the UN Framework Convention on Climate Change, including the recently concluded negotiations in Sharm el-Sheikh (COP27). However, COP27 also included days focused on cross-cutting issues, such as water and biodiversity. This marks part of an important trend in 2022: the increasing prominence of natural capital in considerations of environmental sustainability.
The Taskforce on Nature-Related Financial Disclosures (TNFD) has released several beta version of its framework on nature-related risk and impact management and disclosure (the TNFD framework) this year. The most recent of these updates (version 0.3) was published in early November, days ahead of the COP27 on climate and approximately a month ahead of the COP15 on biodiversity in Montreal. As discussed in our summary of TNFD v0.2, the TNFD Framework aims to establish a standardized risk management and disclosure framework for organizations to address nature-related risks, playing the same role for nature as the Task Force on Climate-related Financial Disclosures (TCFD) has played for climate.