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The second version includes guidance on metrics and how companies can conduct dependency and impact evaluation.

By Paul A. DaviesMichael D. Green, Austin J. Pierce, and James Bee

On 28 June 2022, the Taskforce on Nature-related Financial Disclosures (TNFD) released version 0.2 of its framework for nature-related risk and opportunity management and disclosure (the Framework). The announcement builds on the release of the first iteration in March 2022, which was broadly received positively by market participants in a public feedback process hosted on the TNFD website.

The TNFD was established to develop a risk management and disclosure framework for organisations to report and act on evolving nature-related risks, with the ultimate aim of supporting a shift in global financial flows away from nature-negative outcomes and toward nature-positive outcomes. As the name may suggest, the TNFD has based much of its fundamental structure, including many aspects of the core disclosure recommendations, on the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). The TNFD hopes that the Framework will therefore have the market impact that the TCFD recommendations have had in the climate space, and provide a basis by which companies can represent their natural capital-linked risks and opportunities in a clear and comparable manner for investors.