FfB Foundation reaction to final TNFD beta framework release

London, 28 March 2023. The Finance for Biodiversity (FfB) Foundation welcomes the release of the final draft of the Taskforce on Nature-related Financial Disclosures (TNFD) report.

Anita de Horde, coordinator at the FfB Foundation, said: “Financial institutions joining our foundation are aware that slow action on nature-related risks pose an immense threat to our economies. Our members have pledged to avert these risks within this decade and are actively working to find solutions. Guidance, such as the TNFD report, is an important pillar for our members to find ways how to implement the Global Biodiversity Framework into their disclosure policies.”

One of the FfB Foundation’s sub-working group is currently working on feedback to the consultation period of the framework, which is running until 1 June 2023, before the publication of the final TNFD report in September 2023.

Members of the TNFD sub-working group commented on the release of the draft report:

Charlotte Apps, TNFD sub-working group lead and co-chair of the Target Setting working group at the FfB Foundation, and sustainable investing analyst at Fidelity International, says: “The latest release of the framework provides additional sector and biome-specific guidance, notably draft disclosure metrics for financial institutions, as well as for other high-impact sectors. There is also greater detail on the application of the LEAP (locate, evaluate, assess, prepare) framework, including case studies. These updates should help inform best practice application of the framework, encouraging greater consistency in the use of the framework.

“We also welcome the insights shared from some of the pilot tests by corporates. In addition, features such as the updated knowledge bank and tool catalogues, with enhanced features for users, should help to make the TNFD framework more accessible and its application easier for organisations. Ahead of the publication of the complete set of recommendations in September 2023, we expect to see further refinements to recommended assessment and disclosure metrics, complemented by additional case studies, to aid the practical application of the framework and consistency of disclosures. We will continue to provide feedback to the TNFD to support these improvements.”

Liudmila Strakodonskaya, TNFD sub-working group member and co-chair of the Impact Assessment working group at the FfB Foundation, and responsible investment analyst at Axa Investment Managers, comments: “After a long series of consultations, we welcome this new and last draft of the TNFD framework. We recognise and support the work that has been done by the TNFD on metrics and targets; in particular, its efforts to clarify the core set of relevant indicators and to address sector and biome-specific challenges. It is also relevant and efficient that the framework clearly aligns with the TCFD structure and logic.

“Now, what we would expect from this last stage of the TNFD framework’s design is to continue to disentangle its approach to metrics, making it ambitious and actionable, and to advance on applicability of the framework for financial institutions, as well as to ensure further convergence with existing and future regulatory standards. We will continue to support such work and collaborate with the TNFD to achieve this goal.”

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