On 18 Sept, the final TNFD recommendations launched at NY Climate Week. What were the final changes and metrics, and what do investors using the framework need to know? This summary captures key changes and updates.
In the first round of recommendations, the TNFD provides comprehensive guidance on disclosure requirements, emphasizing the importance of location-specific data, setting it apart from TCFD's Scope 1, 2, and 3 disclosures. It also recommends adopting the ISSB approach to materiality as a foundation, even if incorporating approaches from other jurisdictions. The report introduces a refined categorization of priority locations, distinguishing between material and sensitive ones. Additionally, there's a heightened emphasis on including supplementary data alongside each dependency and impact outlined in the disclosures. The document also offers clearer instructions for metrics reporting, with a focus on comparing assessment and disclosure metrics within the LEAP framework. Notably, the TNFD incorporates three 'placeholder indicators' (invasive alien species, ecosystem condition, and species extinction risk) within core disclosures, encouraging organizations to consider vital indicators that currently lack established metrics.