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What is TNFD? 

The Taskforce on Nature-related Financial Disclosures (TNFD) is a globally recognized framework launched in 2021 to help organizations assess, manage, and disclose their nature-related risks and opportunities. Inspired by the structure and success of the TCFD (Task Force on Climate-related Financial Disclosures), the TNFD focuses specifically on risks and opportunities related to nature, ecosystems, and biodiversity. 

 

The TNFD framework supports companies in identifying and disclosing direct and indirect impacts on nature (covering Scope 1, 2, and 3 emissions where relevant). It offers structured guidance on how to integrate these nature-related risks into broader environmental, social, and governance (ESG) strategies, making it a crucial element for companies operating in or dependent on natural ecosystems. With the rise of regulatory requirements such as the Corporate Sustainability Reporting Directive (CSRD) and CDP, nature-based risk assessments are becoming a core part of corporate sustainability reporting. 

 

What does TNFD cover? 

The TNFD framework provides companies and financial institutions with comprehensive tools for assessing nature-related risks, opportunities, and impacts. The framework highlights the importance of understanding the intersection between nature and business operations. It categorizes nature-related risks into two primary types: 

  • Physical Risks: Risks related to the degradation of natural resources, biodiversity loss, and ecosystem services disruptions that directly impact operations. 
  • Transition Risks: Risks associated with changes in regulations, market preferences, and stakeholder expectations related to nature preservation. 

 

The LEAP Approach is central to TNFD’s methodology, offering a clear, structured process for companies to report on these risks: 

  • Locate: Identifying the company’s interface with nature, focusing on geographic locations and sectors most exposed to nature-related risks. 
  • Evaluate: Assessing the dependencies and impacts the company has on nature across its value chain. 
  • Assess: Quantifying the financial materiality of nature-related risks and opportunities, determining which are most likely to affect business performance. 
  • Provide: Delivering disclosures that provide clear, actionable information to investors, stakeholders, and regulators. 

 

The TNFD framework also emphasizes the interconnection between climate and nature-related risks. Protecting ecosystems and biodiversity is critical for addressing both nature and climate-related risks, encouraging companies to take a more integrated approach to risk management. This holistic perspective supports the sustainability of both businesses and natural ecosystems, contributing to long-term environmental and financial resilience. 

 

YouSustain's TNFD services 

At YouSustain, we provide comprehensive services to help companies implement the TNFD framework and integrate nature-related risk assessments into their ESG strategies. Our services are designed to meet your company’s needs, whether you are at the beginning of your TNFD journey or looking to refine your reporting practices. We offer: 

  • Nature-Based Impact, Risk, and Opportunity (IRO) Assessments: We help companies conduct detailed assessments of their nature-related risks and opportunities. These assessments not only stand alone but also support compliance with broader frameworks such as CSRD and CDP. 
  • LEAP Approach Implementation: Using TNFD’s LEAP methodology, we guide companies through each stage—Locate, Evaluate, Assess, and Provide—ensuring that your nature-related disclosures are in line with best practices and meet global reporting standards. 
  • Workshops and Reporting Assistance: We facilitate internal workshops with company representatives to build a deeper understanding of nature-related risks and opportunities. Our team also supports the development of comprehensive TNFD-aligned reports tailored to your organization’s needs.
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