As the Taskforce on Nature-related Financial Disclosures moves towards publication of its final recommendations in September 2023, the latest version (V0.3) update to the beta framework released includes significant updates and enhancements.

Looking back

The TNFD’s mission is to develop and deliver a risk management and disclosure framework for organizations to report and act on evolving nature-related risks and opportunities, with the ultimate aim of helping to support a shift in global financial flows towards nature-positive outcomes. The Taskforce is market-led, government-supported and science-based. The TNFD adopts an ‘open innovation’ approach in the development of the framework and benefits from extensive input and feedback from businesses, financial institutions, governments, regulatory and standards setting bodies, civil society organizations and Indigenous Peoples and local communities from around the world.

In November 2022, the TNFD released a third version (V0.3) of its framework, building on market feedback on V0.1 and V0.2. Together with the previously released draft disclosures on risks and opportunities, V0.3 of the TNFD framework, now provides a full spectrum of recommended disclosures to support the reporting preferences and compliance requirements of report preparers everywhere.

Feedback and pilot testing

You can find more information and insights about previous versions the TNFD framework here and here.

Since the V0.2 release in June the TNFD forum supporting the Taskforce has grown to over 700 institutions from across five continents. Over 130 organizations have started or announced plans to pilot test the beta framework and over 100 data providers are now participating in the TNFD’s Data Catalyst Initiative.

The TNFD’s beta framework retains the structure, approach and language of the TCFD and continues to build around three core components:

  1. As set of fundamental concepts and definitions for understanding nature and nature-related risks that the TNFD recommends market participants use when assessing and disclosing their nature-risks and opportunities.
  2. A risk and opportunity assessment approach (LEAP) for corporates and financial institutions to support their internal assessments of nature-related risks and opportunities, in turn helping them to prepare for nature-related disclosure aligned with TNFD’s disclosure recommendations; and
  3. A draft set of recommended nature-related disclosures that are closely aligned with, and build from, the disclosures for climate-related risks produced by the TCFD.

At a glance…what’s new?

Key highlights include:

  1. Broadening of the draft disclosure recommendations to incorporate dependencies and impacts on nature alongside risks and opportunities to the organization.
  2. Proposed new disclosure recommendations related to supply chain traceability the quality of stakeholders including rights-holders, engagement and the alignment of an organization’s climate and nature targets.
  3. An adaptive approach to the application of TNFD’s disclosure recommendations to accommodate the varying materiality and reporting preferences and needs of report preparers; and to support early action by companies and financial institutions and encourage increasing disclosure ambition over time.
  4. Additional guidance on risk and opportunities assessment and the metrics proposed to support that analysis.
  5. Enhanced practical usability of its proposed risk and opportunity assessment LEAP approach (Locate, Evaluate, Assess and Prepare).
  6. Draft guidance on target-setting developed with the Science Based Targets Network (SBTN) and draft disclosure guidance for financial institutions.

As part of this update to the beta framework, the Taskforce has issued two discussion papers – one on scenarios and one on societal considerations relevant to nature-related risk management and disclosure – to solicit further feedback from market participants and other stakeholders as these aspects of the framework continue to be considered.

To facilitate the applicability and update of the TNFD disclosure recommendations when released for market adoption in September 2023, the Taskforce is working on a mechanism to encourage the adaptable application of the TNFD disclosure recommendations. This can enable market participants to start disclosing now and increase their disclosure ambition over time. This flexible approach to adoption of recommended disclosures will likely distinguish between ‘core’ disclosures that constitutes a baseline of TNFD adoption and additional disclosure recommendations that represent ‘enhanced’ disclosure.

Together with the previously released draft disclosures on risks and opportunities aligned with the approach and language of TCFD, V0.3 of the TNFD beta framework now provides a full spectrum of recommended disclosures across dependencies, impacts, risks and opportunities to support the reporting preferences and compliance requirements of report preparers everywhere. Our objective is to provide the TNFD framework as a powerful tool that helps move business and finance to take action on nature-related dependencies, impacts, risks and opportunities, sooner rather than later. This framework will encourage increasing disclosure ambition over time, essential to aligning financial flows and business activities to the task of urgently halting and reversing nature loss; and ensuring that both business and finance become more resilient in the face of the increasing frequency and magnitude of nature-related risks that are clearly apparent today.

David Craig
TNFD Co-Chair

The TNFD framework is evolving in a direction that is well aligned not only with emerging regulatory and standard setting approaches but also with global policy goals currently being negotiated as the Global Biodiversity Framework (GBF). I am confident that the TNFD Framework can be the practical connective tissue between global political commitment to act on nature loss represented by the GBF and the mobilisation of business and finance action through better risk management and capital deployment

Elizabeth Mrema
TNFD Co-Chair and Executive Secretary, the Convention on Biological Diversity

Looking ahead

Following a final consultation process after the V0.4 release in March, the TNFD’s final recommendations (V1.0) will be published in September 2023. The Taskforce is also preparing guidance on disclosure metrics; the measurement of impacts, dependencies, and risks across supply chains; and the development of additional guidance for priority sectors – including agriculture and aquaculture, mining, energy, infrastructure, and other sectors.

What can you do now?

  1. Educate and plan: Build internal capability and competence by assessing your organization capacity for assessing, managing and reporting on nature-related risks and opportunities.
  2. Evaluate your most material nature-related risks and opportunities and develop a clear plan for managing these.
  3. Pilot the TNFD draft framework and provide feedback on the beta version.

How can KPMG professionals help your organization address nature-related risks?

KPMG professionals can help you prepare for the TNFD and start to assess disclosure and address your nature-related risks and opportunities. This includes supporting you to understand your organization’s nature-related risks and opportunities, piloting the draft TNFD framework and implementing nature-positive aligned targets, strategies and risk scenario analysis.

Get in touch with a KPMG professional for further insights on how they can help support your organization to pilot the TNFD framework and address nature-related risks and opportunities.


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The views and opinions of external contributors expressed herein are those of the interviewees and do not necessarily represent the views and opinions of KPMG International Limited or any KPMG member firm.