Beyond Carbon: An Introduction to TNFD and Nature-Related Disclosures

While corporate climate action has largely focused on decarbonization via the TCFD framework, a massive blind spot has remained: nature and biodiversity. Over half of the global GDP is moderately or highly dependent on nature. The Taskforce on Nature-related Financial Disclosures (TNFD) was created to address this gap, and it is rapidly becoming the gold standard for nature risk reporting.

The LEAP Approach

TNFD recommends a specific workflow called LEAP for organizations to assess their nature-related issues:

• Locate: Identify where your direct operations and supply chains interface with nature (e.g., water-stressed regions, deforested areas).
• Evaluate: Measure your dependencies and impacts on those specific ecosystems.
• Assess: Determine the material financial risks and opportunities arising from those impacts.
• Prepare: Strategize resource allocation and prepare to disclose findings to investors.

Integration with Climate Frameworks

Nature risk metrics are increasingly absorbed into global standards such as the ISSB IFRS Compliance Roadmap and domestic regulations like BRSR Core Value Chain Assurance. Organizations looking to expand scope should also audit indirect supply chain impacts outlined in Demystifying Scope 3 Emissions.