According to the 2022 Nature Benchmark, just 14 percent of companiesdisclose which of their business locations operate near sensitive ecosystems and only seven percent reveal where their operations interface with species close to extinction.Consequently, the level of nature-related risks or opportunitiescompanies face, let alone their operations’ impact on natural surroundings, are mostly unknown.
This is likely to drastically change as the Taskforce on Nature-related Financial Disclosures (TNFD) continues to develop its framework for final release in September.The TNFD framework is expected to become the gold standard for risk management and reporting on the financial consequences of companies’ impacts and dependencies on nature, just like its cousin, the Task Force on Climate-Related Financial Disclosures (TCFD), has done for climate.
This report explores the nature-related landscape with a focus on the TNFD; and it is the first in the Institute’s briefing series with briefings on the CSRD and SEC to follow.