TNFD launches second version of beta framework 

June 30, 2022

 Includes TNFD’s approach to metrics, specific sector guidance, and additional guidance to support pilot testing. 

The Taskforce on Nature-related Financial Disclosures (TNFD) has released the second beta version of its prototype risk management and opportunity disclosure framework (v0.2).  

This includes an approach to metrics, specific sector guidance, and additional guidance to support pilot testing.  

Based on market feedback, v0.2 distinguishes between assessment metrics and disclosure metrics as TNFD recognises that “what gets disclosed to report users is only a sub-set of what gets analysed internally to inform risk management and decision making”.    

Additionally, v0.2 includes a set of illustrative assessment metrics for dependencies and impacts on nature, which have been drawn from existing metrics in use. 

According to TNFD, the set of illustrative metrics will be expanded to include risk, opportunity, and response assessment metrics as well as disclosure metrics in future updates. 

The TNFD’s cross-sector approach to metrics is also set to expand in future releases with the development of additional sector-specific metrics. 

TNFD co-chairs, Elizabeth Mrema and David Craig, said: “We are delighted with the level of market interest and feedback in the process and will continue to develop a science-based, practical approach aligned as much as possible with other standards-setting, regulatory and policy developments globally as they evolve.” 

The new version builds on v.01, from March, which outlined the fundamental concepts and definitions the TNFD recommends for market participants disclosing their nature-related risks and opportunities.  

Meanwhile, v0.3 and v0.4 of the beta framework are set for November 2022 and February 2023 respectively, before the taskforce makes its final recommendations in September next year. 

TNFD will leverage pilot testing and feedback over the next 12 months in time for its final recommendations in September 2023. A review process has also been suggested to ensure changes in data and measurement technology, investor expectations and regulatory requirements can be accommodated over time.