Legal & Regulatory News

TNFD consults on third iteration of disclosure framework

On 4 November 2022, the Taskforce on Nature-related Financial Disclosures (TNFD) published a consultation on the third iteration of their beta Nature-related Risk and Opportunity Management and Disclosure Framework (the Framework).

The release of the Framework follows the first and second iterations of the TNFD's beta framework in March 2022 and June 2022 respectively, with the aim of supporting a shift in global financial flows away from nature-negative outcomes and toward nature-positive outcomes. The Framework now includes some substantial changes following prior consultations with the TNFD's Working Groups and the wider market participants, including the introduction for the first time of the TNFD's recommended approach to disclosures of dependencies and impacts on nature. Further changes also include:-

• proposed new disclosure recommendations related to supply chain traceability, stakeholder rights, and the alignment of an organisation's climate and nature targets;
• enhanced usability;
• new draft guidance on target-setting for nature;
• new draft disclosure guidance for financial institutions; and
• two new discussion papers covering the TNFD's proposed approach to scenario analysis and societal dimensions of nature-related risk management and disclosures.

Feedback should be submitted before 14 February 2023 in order to be considered ahead of the release of the fourth iteration in March 2023.  The consultation will stay open until 1 June 2023, and the TNFD plan to release the final recommendations in September 2023.

Click here to view the press release.

Click here to view the Framework.

Click here to provide feedback.