At GIST Impact, we welcome the launch of the Taskforce on Nature-related Financial Disclosures (TNFD) recommendations, which represent a monumental step forward in our collective efforts to address the critical issue of nature loss and its impact on businesses and financial markets.
Why are the recommendations so significant?
Nature loss is not just an environmental issue; it’s a financial one too. The TNFD provides a standardised framework for companies and financial institutions to assess, manage, and report on both their impacts and dependencies on nature. This approach is critical, as it encourages companies to not only report on the activities of the business but also contextualise their impacts.
As with climate disclosures, these recommendations move us closer to the ultimate goal of increased transparency, accountability, and informed decision-making across the corporate and financial sectors, ensuring nature and biodiversity considerations are front and centre.
We are highly encouraged to see the TNFD recommendations build directly on the Natural Capital Protocol – the Capitals Coalition’s flagship decision-making framework. This reflects the continual evolution of an aligned natural capital impact methodology, built over more than a decade in line with industry-shaping publications like the Dasgupta Review and The Economics of Ecosystems and Biodiversity (TEEB), and recent developments made by the International Foundation For Valuing Impacts (IFVI), founded by Sir Ronald Cohen.
We support the inclusion of impact valuation in the TNFD framework: valuing nature is a critical step to assess the materiality of impacts, and we will continue to advocate for this to be refined within future versions of the core framework.
The launch of the TNFD recommendations represents a significant milestone on our journey towards a more sustainable and resilient future.
Now that the recommendations are out, the hard work begins. We have a once-in-a-lifetime opportunity to protect our planet’s natural capital while ensuring long-term financial stability. Organisations have a clear path now to start aligning their strategies with nature.
We welcome the framework and look forward to working with companies to operationalise the TNFD recommendations, ensuring that nature sits firmly at the heart of all future business decisions.
Click here to learn more about the TNFD and access the framework, and here to learn more about GIST Impact’s biodiversity solutions for corporates and financial institutions.