TNFD: What is it and what are its objectives?

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The TNFD (Taskforce on Nature-related Financial Disclosures) is a global initiative aimed at developing a framework for the disclosure of nature-related financial information. Established in 2021, the TNFD focuses on how businesses and financial institutions can make transparent the risks and opportunities related to biodiversity loss and ecosystem degradation. This framework helps companies integrate sustainability into their strategy, providing tools to measure and manage the impact of nature on business operations. The TNFD fits into the context of heightened attention to environmental challenges and provides guidelines that support the transition to a more ecologically balanced economy, promoting greater resilience and sustainability in the long term.

The TNFD aims to raise awareness among businesses and investors about the importance of considering nature in financial decision-making processes. One of the main objectives is to provide companies with tools to measure and disclose impacts and risks related to biodiversity and ecosystems. Through transparency, TNFD facilitates the integration of environmental issues into corporate strategies, contributing to long-term value creation. The framework also supports investors in evaluating opportunities and risks related to environmental sustainability, promoting more informed decisions.

The TNFD has adopted an open innovation approach for the development of its risk management and disclosure framework. The task force is composed of about 40 members from a wide range of sectors, including large financial institutions, global companies, accounting and consulting firms, credit rating agencies, and stock exchanges. These members contribute practical experience, expertise, and global perspectives in the preparation and use of financial information related to nature. Moreover, the TNFD includes a global community of over 1,200 organizations - the so-called TNFD Forum - with a presence in more than 180 countries, contributing skills and insights to the design and development of the TNFD framework.

The TNFD has developed the LEAP framework (Locate, Evaluate, Assess, Prepare) to help organizations manage nature-related risks:
- Locate: Identify the geographic areas where the company interacts with nature.
- Evaluate: Analyze the risks and opportunities arising from these interactions.
- Assess: Measure the impact of business activities on nature and how nature itself influences the company.
- Prepare: Integrate the results into financial reports and business strategies.
The TNFD is open to various stakeholders, including companies, financial institutions, governments, NGOs, and research groups. Companies can voluntarily use the framework to improve the management of natural risks. It is possible to officially join the task force to actively contribute to the definition of guidelines and support the integration of nature-related risks into business strategies.

The TNFD recommendations provide a comprehensive framework of metrics to harmonize the numerous indicators related to environmental impacts. These metrics are divided into two categories: core metrics and additional metrics. Core metrics are measured at a global and sectoral level and are used to assess and manage material nature-related factors. In line with the ISSB and TCFD recommendations, organizations are encouraged to report on all core metrics and to include sector-specific metrics when relevant. TNFD also suggests disclosing nature-related target-setting, in accordance with the guidelines of the Science Based Targets Network (SBTN).

The TNFD framework not only addresses biodiversity-related risks but also includes risks and opportunities arising from ecosystem management and ecosystem services, such as water and air. In the near future, the TNFD will continue to develop and refine its framework by gathering participant feedback and aligning with international policies, such as the Global Biodiversity Framework and European regulations, including the Corporate Sustainability Reporting Directive (CSRD Directive). The goal is to provide organizations with the necessary tools to integrate nature management into their business strategies, contributing to a more sustainable and resilient economy.

This article was created as part of the project "Biodiversity services EU expansion" (CUP: E43D22000480009) under the call of Regione Lombardia "PR FESR 2021-2027 – LINEA INTERNAZIONALIZZAZIONE 21-27", aimed at supporting the internationalization of Italian companies. 3Bee is the naturetech company that develops innovative technologies for the monitoring, protection, and regeneration of biodiversity, supporting companies in defining personalized climate strategies based on analysis of their impacts and dependencies on nature. With a consolidated portfolio in Italy, Germany and France, and significant partnerships, 3Bee continues its expansion into international markets to create a tangible impact through technology.