Overview
Introduced: 2021
Effective from: September 2023 (Final recommendations issued)
Last modified: June 2024 (Sector-specific guidance introduced)
Region(s): Global
About
The Taskforce on Nature-related Financial Disclosures (TNFD) provides a global framework enabling companies and financial institutions to identify, assess, manage, and disclose their dependencies, impacts, risks, and opportunities related to nature. Aligned closely with the Taskforce on Climate-related Financial Disclosures (TCFD), TNFD promotes integrated reporting of nature and climate risks, emphasizing the principle of double materiality—addressing both impacts on nature and nature’s impacts on business performance.
TNFD’s recommendations support the Kunming-Montreal Global Biodiversity Framework, facilitating robust nature-related disclosures within existing corporate risk, strategy, and reporting processes. As of 2024, TNFD has introduced additional sector-specific guidance, assisting companies in sectors with heightened nature-related risks, including agriculture, forestry, mining, finance, and infrastructure.
Criteria for compliance
Entities covered
The TNFD framework is currently voluntary. It is recommended for all organizations, especially those facing material nature-related risks or operating within high-impact sectors such as agriculture, mining, forestry, infrastructure, manufacturing, consumer goods, and financial services. There is anticipated potential integration into regulatory frameworks between 2026–2028.
Compliance timelines
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September 2023: TNFD final recommendations published.
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2024–2026: Early adoption encouraged, with many companies already aligning disclosures voluntarily.
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2026–2028 (anticipated): Potential integration into regulatory requirements in major jurisdictions globally.
Disclosure requirements
The TNFD framework comprises 14 recommended disclosures, organized across four primary pillars.
Governance
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Describe board and management oversight of nature-related dependencies, impacts, and risks.
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Detail engagement with stakeholders, including Indigenous Peoples, local communities, and those directly impacted by company activities.
Strategy
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Explain how nature-related risks and opportunities influence corporate strategy and financial planning across short-, medium-, and long-term horizons.
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Conduct scenario analyses to assess strategic resilience under varying nature-related conditions.
Risk and impact management
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Disclose processes for identifying, assessing, prioritizing, and managing nature-related risks and impacts throughout direct operations and value chains.
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Include location-specific disclosures of critical ecosystems, natural resources, and biodiversity impacts.
Metrics and targets
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Report metrics used to assess and manage nature-related risks, dependencies, and impacts.
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Disclose specific targets set to mitigate risks and achieve nature-positive outcomes.
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Provide annual progress reporting against these established targets.
Third-party auditing
While TNFD does not mandate third-party auditing, it is encouraged to enhance the credibility of disclosures. Companies are advised to align their reporting with recognized standards, and third-party assurance may be sought for higher transparency.
Penalties for non-compliance
TNFD operates on a voluntary basis, so there are no formal penalties for noncompliance. However, failure to comply with or integrate TNFD recommendations could lead to reputational risks, reduced stakeholder confidence, and missed opportunities in nature-related financial markets.
Jurisdictions aligned
TNFD disclosures have gained widespread global support and alignment, including:
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United Kingdom: Proposed integration into regulatory frameworks
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European Union: Alignment with ESRS E4
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France: Consistent with Article 29 of France’s Energy and Climate Law
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Switzerland and Canada: Official endorsements and alignment
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G7/G20: Broad support and encouragement for global adoption
