With V.04 of the Taskforce for Nature-Related Disclosures (TNFD) Beta Framework now revealed, what are the updates in the new and last draft? Here’s a rundown of six key updates in the new beta framework.
The TNFD is working to provide market participants with a risk management and disclosure framework to identify, assess, respond and, where appropriate, disclose their nature-related issues. The version 4 release marks the final beta publication before the final framework is launched in September 2023.
The framework's core components and overall structure remain unchanged and consistent with v0.3, however there is significantly more detail than in previous interactions following financial sector feedback with updates including a complete set of 14 draft recommended disclosures, updated guidance on the LEAP approach, new draft data metrics and targets, and insights from pilot testing.
Changes include:
For the first time, market participants can view a full representation of the framework, including examples of additional guidance by sector and biome.
On disclosures: V.04 contains a complete set of 14 draft recommended disclosures with implementation guidance for 'All Sectors';
It also includes six 'General Requirements' for TNFD disclosures that cut across the four pillars of recommendations, including guidance on organisations setting out their approach to materiality, considering disclosures in the context of other sustainability-related disclosures; and taking consideration of stakeholder engagement into account;
Additions to the LEAP approach, including updated guidance on the locate phase - business footprint, interfacing with nature and identifying priority locations and sectors where guidance has become more detailed.
Stakeholder engagement - including new practical guidance for market participants on engagement with affected stakeholders;
The addition of three risk assessment methods.
The Taskforce seeks feedback via the TNFD website portal by 1 June 2023, ahead of the final framework's launch in September 2023.
Look out for a forthcoming Locate case study, applying NatureAlpha's geospatial insights to the LEAP framework.
Click here to download the latest NatureAlpha Briefing exploring the updates at-a-glance.
Find the v.0.4 Disclosure Metrics Annexes here.