A global framework for companies to manage and disclosure their nature-related risks came closer to reality Tuesday with release of a final draft by the Taskforce on Nature-related Financial Disclosures.
Considered the biodiversity counterpart to the Task Force on Climate-related Financial Disclosures' climate change risk disclosure standards, the final recommendations will come out in September, TNFD said in a statement.
The TNFD approach and disclosure recommendations will complement those from the TCFD, "providing market participants with a high level of alignment with the structure, language and approach taken by the TCFD. This should encourage and enable market participants to move towards integrated climate-nature disclosures," TNFD said in the statement.
TNFD co-chairman David Craig said that the final draft gives market participants a full representation of the framework's core aspects, and represents the culmination of an effort that while science-based, will "make the complexity of the science of nature accessible and relevant to market participants."
Development of the TNFD framework included active participation by the market, including pilot testers, which should translate into strong market support for the final framework, Mr. Craig said. There is a 60-day consultation for final feedback and pilot testing until June 1.