The Taskforce on Nature-related Financial Disclosures (TNFD) announced plans to end its technical work program, including its work to develop technical guidance for nature-based reporting, following an announcement by the IFRS Foundation’s International Sustainability Standards Board (ISSB) that it will begin work on standard setting for disclosure requirements on nature-related risks and opportunities.
The TNFD was launched in 2021, building on the success of the Task Force on Climate-related Financial Disclosures (TCFD), to support organizations in reporting and acting on their nature-related risks. The organization published its final recommendations for nature-related risk management and disclosure in September 2023, centered around 14 recommended disclosures, aimed at helping inform better decision-making by companies and capital providers on nature and biodiversity-related risks, opportunities, dependencies and impacts.
To date, more than 730 companies and financial institutions, accounting for more than $9 trillion in market capitalization and $22 trillion in assets under management have committed to adopt the TNFD recommendations.
The TNFD decision follows the announcement by the ISSB of the beginning of its standard-setting work for nature-related disclosures, which the ISSB said will draw on the TNFD framework, including its recommendations, metrics and guidance, including the Locate, Evaluate, Assess, Prepare (LEAP) approach. Earlier this year, the IFRS Foundation and TNFD announced a formal collaboration aimed at enabling nature-related financial disclosures for capital markets.
The ISSB said that hasn’t yet decided on its approach to nature-related standard-setting, with options available including a new standard, a mix of application guidance or amendments to existing ISSB Standards, industry-based guidance or additional sources of guidance.
Following the ISSB’s announcement the TNFD said that it “welcomes the decision by the International Sustainability Standards Board (ISSB) to move into a standard-setting process on nature-related risks and opportunities,” and said that in light of the decision, it “will pause the commencement of any further technical guidance” after completing its work in progress, anticipated for Q3 2026, and that it will “focus additional technical efforts on supporting the ISSB’s work programme.”
The TNFD added that it will conclude its technical program, subject to the outcome of the ISSB’s standard-setting process, likely in 2027. Similarly, the IFRS Foundation announced in 2023 that it would take over the responsibilities of the TCFD, after the ISSB launched its initial sustainability and climate-reporting standards.
TNFD Co-Chair David Craig said:
“This week’s announcement by the ISSB is an important step towards nature being considered and embedded in an integrated way into the global foundations of corporate reporting. It will help shift the mindset across business about nature as a source of risk, resilience and value, and help inform better strategy, risk management and capital allocation decision making across economies. That is important for the resilience of the planet and the resilience of businesses and capital portfolios everywhere.”
ISSB Chair Emmanuel Faber said:
“We welcome TNFD’s decision to complete the technical work it currently has in progress and then to pause and provide its support as we advance the global baseline where it relates to nature through the ISSB. I encourage market participants to continue using the TNFD framework. This will help them prepare disclosures in accordance with IFRS S1 and prepare for meeting future incremental ISSB disclosure requirements.”
