The TNFD supports use of cross-reference tables for corporate reporting

  • Date Posted

London, UK, 16 September 2024

The Taskforce on Nature-related Financial Disclosures (TNFD) has today signalled its support for the use of cross-reference tables in corporate reporting to help simplify and streamline the presentation of TNFD-aligned recommended disclosures in existing voluntary or mandatory corporate reporting.

Today’s announcement responds to market calls for greater streamlining of corporate reporting and reflects existing market practice, including in the first generation of TNFD-aligned reporting on nature-related issues that has emerged since the release of the TNFD recommendations in September 2023.  

It also reflects the multi-year collaboration between sustainability standard bodies and the TNFD which has produced a high level of alignment and consistency in the nature-related information recommended to be disclosed by corporates and financial institutions. In recent years, the International Sustainability Standards Board (ISSB), Global Reporting Initiative (GRI), European Financial Reporting Advisory Group (EFRAG), disclosure platform CDP and Taskforce on Nature-related Financial Disclosures (TNFD) have worked closely together to harmonise their concepts, definitions and approaches, ensuring that organisations can report on their nature-related issues in a consistent and comparable manner.

This high level of consistency with the recommendations of the TNFD can be observed in the most recent standards released by these organisations, namely:

  • The ISSB’s IFRS S1 ‘General Requirements for Disclosure of Sustainability-related Financial Information’ published in June 2023;
  • GRI 101: Biodiversity 2024 published in January 2024; and
  • The European Sustainability Reporting Standards (ESRS) formally approved by the European Commission in July 2023.

In the past year, these organisations have strengthened their collaboration by producing ‘correspondence mappings’ that highlight the high level of consistency achieved and can support organisations in their reporting. This can help avoid disclosing the same information in multiple reporting documents.

As a result of these collaborative efforts since the TNFD was formed in late 2021, much of the information recommended for disclosure by the TNFD is now included in reports produced under these standards. Consequently, the TNFD supports the use of ‘TNFD cross-reference tables’ where it may be appropriate to do so. Cross-reference tables can be attached to an organisation’s reporting to show the alignment of sustainability disclosures, including data points, with the TNFD recommendations and metrics. The use of cross-reference tables can help to reduce report preparer costs, avoid duplicative reporting and make information easier and more efficient for report users to find, as long as there is no loss of quality in the disclosures being made consistent with the respective recommendations and standards.

While each organisation needs to determine its own approach to presentation of material sustainability-related information – whether in combined or separate documents – the use of cross-reference tables can enable corporates and financial institutions to adopt the TNFD recommendations without the need to create a separate TNFD report. Early TNFD reporting shows that companies are already using cross-reference tables, including reporting against the TNFD recommendations. To support TNFD cross-reference tables with the GRI Standards and the ESRS, report preparers can use the two joint correspondence mappings recently published by the TNFD with GRI and EFRAG.

The TNFD is committed to further alignment and interoperability by working together with standard bodies as the global sustainability reporting landscape on nature-related issues continues to evolve. As part of these efforts, the TNFD is supporting the ISSB’s ongoing research into biodiversity, ecosystems and ecosystem services and enhancement of the SASB standards.

TNFD aims to provide decision makers in business and capital markets with better quality information through corporate reporting on nature that improves enterprise and portfolio risk management. Robust information on nature-related issues allows business to incorporate nature-related dependencies, impacts, risks and opportunities into their strategic planning, risk management and asset allocation decisions. Better information in the hands of investors and other capital providers can help shift the flow of global capital to positive outcomes for nature, economies and society. The TNFD’s guidance is therefore not only for disclosure but also for risk and opportunity management, with a focus on action and improved decision-making. In particular, the TNFD LEAP approach can support thorough due diligence assessments of nature-related dependencies, impacts, risks and opportunities, equipping companies to take strategic, credible actions to respond to these issues as well as provide a basis for reporting on existing and emerging standards.

An example of a cross-reference table template is provided as an illustration, but organisations can adapt this to fit their own needs and context.

Cross Reference Table: example with ESRS disclosures
Cross Reference Table Example With Esrs Disclosures
Illustrative example – Orsted’s 2023 sustainability report
Orsted Example Correspondence Table
ABOUT THE TASKFORCE ON NATURE-RELATED FINANCIAL DISCLOSURES (TNFD)  

The Taskforce on Nature-related Financial Disclosures (TNFD) is a market-led, science-based and government-backed initiative providing organisations with the tools to act on evolving nature-related issues. It was launched in June 2021 with the support of the G20 Sustainable Finance Working Group and financial support from a number of governments and philanthropic foundations.

In September 2023, the TNFD published a set of disclosure recommendations and guidance that encourage and enable business and finance to assess, report and act on their nature-related dependencies, impacts, risks and opportunities.

The recommendations and guidance will enable businesses and finance to integrate nature into decision making. The goal of the Taskforce is to support a shift in global financial flows away from nature-negative outcomes and toward nature-positive outcomes, aligned with the Global Biodiversity Framework.

With the recommendations released, the Taskforce is now focusing its efforts on encouraging and supporting voluntary market adoption and supporting efforts to address the implementation, capacity building and data needs of market participants.  

The Taskforce is comprised of 40 senior executives drawn from leading financial institutions, corporates and market service providers, with combined assets of over US$20 trillion. Twenty core knowledge partners from leading science, standards, and data bodies feed into the work of the Taskforce. A group of over 1,500 organisations support the work of the Taskforce as institutional members of the TNFD Forum. Over 400 organisations globally have now committed to start reporting on their nature-related issues aligned to the recommendations of the TNFD. 

TNFD will have a significant presence at COP16 in Cali, Colombia this October, including an announcement of the next cohort of organisations committed to starting nature-related reporting aligned to the TNFD recommendations.

MEDIA CONTACT

Rita Lockheart, Communications Lead, [email protected]

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