HomeMetrics An introduction to the TNFD’s metrics architecture Overview Metrics architecture Core disclosure metrics Sector disclosure metrics Assessment metrics Get started Back to top Overview An initial survey in 2022 by the Taskforce of nature-related indicators and metrics in use for corporate reporting revealed over 3,000 unique metrics, with different definitions used for similar indicators, inconsistencies and uneven coverage across nature-related issues. Our metric architecture addresses this by providing a leading indicators approach to measurement of nature-related issues. This approach reconciles the large number of indicators and the needs of market participants for a relatively small set of disclosure indicators and metrics that can be compared and subjected to third-party assurance. The metrics have been selected based on the following principles: Science-based and provide insights into the consequences of business and finance activities Sensitive enough to reflect change on an annual basis Relevant to the business model and value chain of report preparers Proportionate, reflecting the practical capacity and cost constraints of report preparers Decision-useful to the primary users of corporate sustainability reports Subjectable to independent limited assurance in the medium term Aligned to global and national policy goals and targets, such as the GBF measurement framework, other international treaties, standards and target setting frameworks Metrics architecture The TNFD metrics approach includes different categories of metrics, including: A small set of core disclosure metrics – ‘core global metrics’ that apply to all sectors and ‘core sector metrics’ for each sector A larger set of additional disclosure metrics – ‘additional global metrics’ that apply to all sectors and ‘additional sector metrics’ for each sector Assessment metrics – used for internal assessment processes Metric categories The TNFD has defined the following categories of metrics, relevant for both disclosure and internal assessment purposes: Location prioritisation metrics Dependency and impact metrics Risk and opportunity metrics Response metrics Global versus Sector metrics Disclosure metrics are split into ‘Global metrics’, which are relevant to all sectors, and ‘Sector metrics’, which are relevant to specific sectors only. Sector-specific metrics form an important part of the TNFD metrics architecture. This reflects the diversity of business models across value chains and their interface with nature across and within sectors. We recommend that report preparers stay engaged with year-on-year progress on sector-level assessment and reporting metrics among related standards and initiatives. Sector metrics are provided in each sector guidance document. Core disclosure metrics ‘Core disclosure metrics’ are recommended to be disclosed on a comply or explain basis. This means an organisation should report on the core disclosure metrics unless: It has not been identified as relevant and material to the organisation It has been identified as relevant and material, but the organisation is unable to measure it due to limitations with methodologies, access to data or because the information is commercially sensitive. In this case, organisations should explain how they plan to address this in future reporting periods. It is not expected that all organisations will be able to report on all core disclosure metrics immediately. Our recommended core global disclosure metrics are organised around 14 core global indicators. These relate to: Dependencies and impacts on nature (recommended disclosure Metrics and Targets B) Nature-related risks and opportunities to the organisation (recommended disclosure Metrics and Targets A) The nine core global dependency and impact indicators relate to the five drivers of nature change. The indicators should be considered within the context of dependency and impact pathways, including impact drivers, external factors, changes to the state of nature and changes to ecosystem services. They should be reported at the level of the material issue. The five core global risk and opportunity indicators relate to aggregate levels of risk and/or opportunity within organisations and are designed to provide an overall indication of the level of risk or opportunity. Core global risk and opportunity metrics should be reported at the organisational level. The ‘core sector disclosure metrics’ can be found in Section 3 of each TNFD additional sector guidance. Placeholder indicators There are two TNFD ‘placeholder indicators’ for measurement of invasive species and the state of nature. TNFD encourages organisations to consider and report against placeholder indicators where possible and will continue to work with knowledge partners to identify and develop further guidance on these metrics. Core sector disclosure metrics Each additional sector guidance provides the TNFD sector-specific metrics. They include Guidance on the application of the core global dependency and impact disclosure metrics to the relevant sector (e.g. specific pollutants or waste types to consider) Core disclosure metrics for each sector Additional disclosure metrics Additional metrics are recommended for disclosure, where relevant, to best represent an organisation’s nature-related issues, based on their specific circumstances. The ‘additional global metrics’ are contained in Annex 2 of the TNFD Recommendations. These are relevant for disclosure of nature-related dependencies and impacts, risks and opportunities and the organisation’s response to these issues. Organisations are not limited by the metrics identified by the TNFD and are encouraged to report any other metrics that are material and relevant to their organisation. The ‘additional global metrics’ are contained in Annex 2 of the TNFD Recommendations. The ‘additional sector disclosure metrics’ can be found in Section 3 of each TNFD additional sector guidance. Assessment metrics Assessment metrics are used for internal assessment processes but are not required for external disclosure. Annex 1 of the LEAP Approach provides illustrative sets of assessment metrics for each TNFD metric category, mapped to the relevant phase of LEAP. These metrics help to get LEAP assessment teams started. Acknowledging that every business is unique, assessment teams should consider other relevant metrics beyond those recommended by the Taskforce. Assessment metrics are at the cross-sector level. Disclosing state of nature and ecosystem service metrics The TNFD’s disclosure metrics centre on impact drivers, but also acknowledge the importance of understanding changes to the state of nature and ecosystem services. State of nature metrics Organisations are encouraged to report on the following core global placeholder indicators: • Level of ecosystem condition by type of ecosystem and business activity; and • Species extinction risk. The TNFD does not currently specify one metric as there is no single metric that will capture all relevant dimensions of changes to the state of nature and a consensus is still developing on the different measurement options for these indicators. The TNFD will continue to work with knowledge partners and initiatives, including the Nature Positive Initiative, to provide further specificity and guidance on disclosure of state of nature indicators as consensus further develops. Organisations can also refer to the TNFD additional guidance on measurement of the state of nature in Annex 2 of the LEAP approach. Ecosystem service metrics Metrics for the measurement of the availability of ecosystem services that an organisation depends on or impacts are also important. The measurement of ecosystem services is specific to the particular service being measured and to the location of the impact. The Evaluate phase of the LEAP approach provides further guidance on measuring dependencies and impacts on ecosystem services. Publications Taskforce on Nature-related Financial Disclosures (TNFD) Recommendations Additional guidance for financial institutions Additional sector guidance – Aquaculture Additional sector guidance – Biotechnology and pharmaceuticals Additional sector guidance – Chemicals Additional sector guidance – Electric utilities and power generators Additional sector guidance – Food and agriculture Additional sector guidance – Forestry, pulp and paper Getting startedWe recognise that every organisation is different often with their own pathway to adopting our recommendations. To help organisations get started we’ve created a useful Getting Started guide alongside a set of Additional Guidance and a range of useful tools and capacity building materials that can help organisations chart their course towards the identification, assessment, management and disclosure of nature-related issues. Getting started