Think of TNFD as a road: a pathway towards nature-positive that any business or organisation is invited to follow. lt is a global, market-led, science-based and government-supported initiative, proposing 14 disclosure recommendations to help companies and financial institutions factor nature into decisions, and ultimately shift financial flows away from nature-negative outcomes and towards nature-positive outcomes.
A CDP research from November 2022 shows that companies are recognising biodiversity risks but a majority are not turning commitments into action.
Indeed, according to the WEF ‘s Global Risks Report 2023, “Business and political imperatives tend to prioritise risks with a direct, immediate and localised impact, [...]. This is necessary to manage crises, especially when millions of lives and livelihoods are at risk. However, when such risks manifest, resources and attention are often diverted from addressing global risks, especially those that form the root causes of local catastrophes or those that may arise outside the time frames relevant to today’s leaders.”
We must ensure that addressing current crises does not detract from the major risks looming ahead. That’s where the Taskforce for Nature-related Financial Disclosure comes in handy, providing a “how-to map” to identify and assess today’s and tomorrow’s nature-related risks and dependencies, allowing organisation to better manage them in the long run.
The framework comes with an assessment approach for organisations of any size, sector or geography : are you willing to take the LEAP?
The TNFD framework is a game changing tool towards nature-positive as it comes with an assessment approach that was created with knowledge partners and existing relevant frameworks so that any organisation of any size, sector and geography can implement it.
In other words, not only does TNFD provide all businesses a road towards nature-positive, but it also proposes a detailed GPS route on how to reach their destination. That means the framework can (and should) become a global reference to measure and address nature-related risks and dependencies.
"We use nature because it’s valuable, we lose nature because it’s free” - said Pavan Sukhdev.
The TNDF framework is made to help companies and financial institutions factor nature into decisions and ultimately shift financial flows towards nature-positive outcome. But, isn’t there a risk in monetising nature?
Last year in Davos, InTent had asked that question to Simon Zadek (NatureFinance). His answer was clear: we’re in a very exciting moment where nature can finally be valued in our global economy, we’re seeing a surge of monetisation and trade of nature, but governance is key. Governance is an enabler, ensuring transparency and fairness in these uprising markets and practices.
TNFD is providing a roadmap to direct financial flows towards nature-positive positive outcomes. Many organisations and businesses are willing to take the path proposed by the framework. But the big challenge to come is regulation.
If you are interested in the TNFD framework and its integrated implementation approach, we highly recommend to go explore their website. They have created precise and practical “how to guides” on topics addressed in this article.
