The Task Force on Nature-related Financial Disclosure (TNFD) is a group of experts convened by the G20 in 2013. The task force aims to provide recommendations on how to improve the disclosure of climate-related information by companies. It is chaired by Michael R. Bloomberg, United Nations Secretary-General’s Special Envoy for Cities and Climate Change, and Mark Carney, Governor of the Bank of England.
Who is part of the TNFD and what is their focus?
How does the TNFD help your business?
- Governance: disclosing how an organization’s board of directors or equivalent overriding authority oversees climate-related risks and opportunities. Examples could include the description of the oversight of the Board of Directors (e.g. audit or sustainability committees), processes for regular updates on climate risks and opportunities, etc.;
- Strategy: describing how an organization’s strategic planning takes into account material climate-related risks and opportunities encountered or expected by the organization;
- Risk Management: discussing how an organization identifies, assesses, manages and monitors material climate-related risks;
- Metrics & Targets: reporting on greenhouse gas emissions reduction targets, consistent with keeping global temperature increase below 2°C above preindustrial levels, as well as other key performance indicators identified as being material to assessing progress towards reducing impacts from climate change.
Each component contains several recommended disclosure topics that companies can choose to publish, depending on what is material to their business. For example, under the component “Governance”, companies may disclose their organizational structure for managing climate-related risks and opportunities (e.g., sustainability steering committees). Alternatively, companies could describe training programs for employees on climate-related risks and opportunities.