A summary of ESG-related news 【18th – 25th September】
Reported by Ingo Tietböhl（Director of ESG Research and Solutions）
“Final TNFD Recommendations on nature related issues published and corporates and financial institutions begin adopting”
- According to the press release, “the Taskforce on Nature-related Financial Disclosures (‘TNFD’) has today published its final Recommendations for nature-related risk management and disclosure. An accompanying suite of additional guidance has also been released to help market participants get started with integrated assessment and corporate reporting related to nature.”
- “The Recommendations aim to inform better decision making by companies and capital providers, and ultimately contribute to a shift in global financial flows toward nature-positive outcomes and the goals of the Kunming-Montreal Global Biodiversity Framework.”
- “The publication of 14 recommended disclosures and a suite of additional implementation guidance marks the culmination of a two-year consultative development process, including pilot testing by over 200 companies and financial institutions.”
- Moreover, “The final Recommendations are science-based and voluntary, building on the market’s experience with, and progress on, climate-related reporting. They are closely aligned to the disclosure framework developed by the TCFD, incorporating the same four conceptual pillars: 1. Governance: The governance processes, controls and procedures the organisation uses to monitor and manage nature-related issues; 2. Strategy: The approach the organisation uses to manage nature-related issues; 3. Risk & Impact Management: The process used by the organisation to identify, assess, prioritise and monitor nature-related dependencies, impacts, risks and opportunities; and 4. Metrics & Targets: The metrics and targets used to assess and manage material naturerelated dependencies, impacts, risks and opportunities.”
- The release of this framework is an important step towards improving corporate sustainability reporting, and the TNFD guidelines are expected to influence future sustainability disclosure standards. It also appears that the International Sustainability Standards Board (ISSB) of the IFRS Foundation intends to refer to the TNFD in the future. Additionally, the CDP, a platform for environmental disclosure, also plans to align itself with the TNFD framework.