Taskforce on Nature-related Financial Disclosures (TNFD)

1. What is the purpose of the TNFD?

To help organizations incorporate nature and biodiversity-related risks into financial decision-making and disclosure practices.

2. How is TNFD different from TCFD?

While TCFD focuses on climate-related financial risks, TNFD addresses nature-related risks (e.g., ecosystem degradation, deforestation, water scarcity). They are complementary.

3. What are nature-related risks?

These include risks stemming from an organization’s impact on nature (like pollution or habitat loss) and dependencies on natural systems (like water supply or pollination).

4. Is TNFD reporting mandatory?

No, TNFD is currently voluntary, but it's increasingly encouraged by regulators, investors, and sustainability frameworks.

5. What does the TNFD framework include?

It follows a LEAP approach:

• Locate interface with nature

• Evaluate dependencies and impacts

• Assess risks and opportunities

• Prepare for response and disclosure

6. Who should use the TNFD framework?

Corporates, financial institutions, and asset managers—especially those with high exposure to natural resources or supply chains dependent on ecosystems.

7. Why is TNFD important for investors?

It enables better risk management and capital allocation by identifying companies that are more resilient to nature-related challenges.

8. When was the TNFD launched?

It was officially launched in June 2021, with its first full recommendations released in September 2023.

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