Feb-Mar newsletter: first beta version of TNFD framework for market consultation
TNFD releases first beta version of framework for market consultation
Today’s beta release is the first integrated approach to incorporating nature-related risk and opportunity analysis into the heart of corporate and financial decision making. The release marks the start of an 18-month process of consultation and development together with a broad range of market players and stakeholders. By following an open innovation approach, TNFD hopes to accelerate the framework’s development and steadily improve its relevance, usability, and effectiveness before releasing its final recommendations in Q3 2023.
The first beta version of the TNFD framework comprises three components:
- Foundational science-based concepts and definitions, to help market participants understand nature, and nature-related risks and opportunities;
- Draft disclosure recommendations aligned with the recommended disclosures of the Task Force on Climate-related Financial Disclosures (TCFD); and
- A prototype of practical guidance on nature-related risk and opportunity analysis for companies and financial institutions to incorporate into their enterprise risk and portfolio management processes.
The TNFD has created an interactive online platform to present the first beta version of the framework in full and collect feedback. You can also view the framework in report form. An Executive Summary is available in English, French, Japanese, Mandarin, Portuguese and Spanish.
A further three iterations of the beta versions are planned for release in June 2022 (v0.2), October 2022 (v0.3) and February 2023 (v0.4). This will culminate in the final release of the TNFD’s recommendations (v1.0) planned for September 2023.
Today, the Taskforce also releases the discussion paper ‘A Landscape Assessment of Nature-related Data and Analytics Availability’. The paper sets out a landscape mapping of data platforms and sources, and two case examples of how data and analytics can be used in the TNFD nature-related risk and opportunity assessment process.
Taskforce invites market participants to review & test the framework
There are several ways market participants and other stakeholders can test and provide feedback on the first beta version of the TNFD framework:
- Organisations can review and comment on the draft framework, as well as the data discussion paper, on the TNFD online platform and provide feedback using its feedback functions. Early feedback over the next 45 days is especially welcome from corporates, financial institutions and regulators.
- Corporates and financial institutions keen to explore how the TNFD framework might apply in their specific organisational context can pilot test the framework independently and, in some cases, through industry collaborative efforts outlined on the TNFD online platform. Pilot testing of the beta Framework will commence on 1 June 2022.
- Based on the feedback provided by market participants, the TNFD will then convene Focus Group discussions – around key emerging themes, or by geography or sector – to engage feedback providers in further detail.
The TNFD’s open consultation period will continue until June 2023. Organisations can provide feedback on this first beta version, as well as subsequent beta versions planned for release in June 2022, October 2022 and February 2023.
Learn more about how to provide feedback and co-create the TNFD framework.
Meet the TNFD Alliance
Hear Taskforce Member Rahul Ghosh from Moody’s share why he joined the Taskforce and what he is now working on in his role as one of the 34 Taskforce Members.
Read, watch, listen: key new content on nature, finance & business
- The TNFD Nature-Related Risk & Opportunity Management and Disclosure Framework Beta v0.1 (TNFD)
This first beta version of the TNFD framework is a prototype for consultation with market participants.
Read the Executive summary (available in English, French, Japanese, Mandarin, Portuguese and Spanish).
- You can also explore and feedback on the beta version of the framework in full on TNFD’s interactive online portal.
- A recorded webinar on the beta release is now available on the TNFD YouTube channel. Speakers include TNFD Co-Chairs Elizabeth Mrema and David Craig; TNFD Taskforce Members Judson Berkey (UBS), Jessica McDougall (BlackRock), Bas Ruter (Rabobank), and Emily McKenzie (TNFD Technical Director). The session is moderated by Tony Goldner, TNFD Executive Director.
- Discussion paper: A Landscape Assessment of Nature-related Data and Analytics Availability (TNFD)
The discussion paper sets out a landscape mapping of data platforms and sources, and two case examples of how data and analytics can be used in the TNFD nature-related risk and opportunity assessment process.
- Testing a nature-related risk framework in the consumer staples sector: learnings from soy supply chains (Global Canopy and UNEP FI)
The report identifies key challenges that corporates and financial institutions face in assessing, managing and reporting on their nature-related risks.
- Business readiness to step up action on nature – trends & insights on corporate reporting (WBCSD)
The report assesses the current performance of business disclosures on nature and identifies key trends & insights relevant to nature-related reporting.
For more new content visit the TNFD Knowledge Bank, which features an extensive selection of curated research reports and market insights.
Join TNFD at events
- ‘Setting goals—Spotlight on the Global Biodiversity Framework and TNFD (21 March) TNFD Co-Chair David Craig will speak at a panel session at the Economist’s Sustainability Week 2022 alongside Basile van Havre, Co-chair, Convention on Biological Diversity and Beccy Wilebore, Chief of Science, Natural Capital Research. The discussion will be moderated by Mark Gough, Chief Executive, Capitals Coalition.
- Managing Nature-related Risks and Opportunities (22 March 11.30am-1pm EST/ 3.30-5pm GMT/4.30pm-6pm CET – livestream timings) Hosted by TNFD and the City of London, speakers will include Emily McKenzie, TNFD’s Technical Director and Taskforce Members Abyd Karmali (Bank of America) and Cassandra Greeff (GSK). The event will explore the beta version of the framework as well wider topics on nature-related risks and opportunities. You can watch the livestream of the event here.
For a complete list of upcoming events with TNFD spokespeople, see tnfd.global/events
TNFD in the media – highlights
- Reuters (15 March): Nature-related financial risks group launches draft guidance
- IPE (15 March): TNFD releases prototype for nature-related risk framework
- BusinessGreen (15 March): The new TCFDs? Inside the quest to develop a global nature-related risk framework for business
- ESG Investor (15 March): TNFD Draft Offers Location-Specific Guidance on Biodiversity Risks
- Edie.net (23 February): GFI: COP26 shifted the dial on climate finance, but the devil is in the detail
- International Financial Law Review (21 February): Biodiversity concerns set to be the next frontier after climate change