This report by the SustainAbility Institute by ERM and the Capitals Coalition, addresses challenges facing companies in the complex and rapidly evolving nature arena, particularly those regarding the Taskforce on Nature-related Financial Disclosures (TNFD) Framework scheduled to launch in September 2023.
The connection between nature and business is deep, with trillions of dollars of economic value across geographies and sectors dependent upon nature and its services. Few companies, if any, can claim to be fully removed from the impacts of natural systems on the global economy. As nature degradation and loss increase, the private sector will likely be impacted by resulting reductions in global annual GDP. The protection of natural systems now could not only mitigate potential economic losses but also provide positive benefit to businesses while improving biodiversity, limiting the effects of climate change, and strengthening local economies.
As more corporates recognize the business case of protecting natural systems, the case for nature-related disclosure will follow. Like the way the Task Force on Climate-Related Financial Disclosures (TCFD) Framework supports more comprehensive reporting on climate, the TNFD Framework will help guide companies in disclosing information relating to nature-related risks and opportunities.
In building the case for nature-related disclosure and providing a roadmap for how business can approach it, this report connects the Capitals Coalition’s Natural Capital Protocol with TNFD’s beta v0.3 Framework. It also leverages ERM’s expert insights to outline a set of nature-related actions that companies can and should take today. Businesses that follow this guide will be well positioned for clear and consistent disclosure upon TNFD’s upcoming launch; this report will also help companies address anticipated future regulation making some nature-related disclosures mandatory.