The Taskforce on Nature-related Financial Disclosures (TNFD) has released the third draft version of its beta framework.
The framework, which was announced in June last year and had its first draft published in March, is designed to provide schemes with a more specific framework to alter financial institutions' flows away from nature-negative outcomes, in line with the work undertaken by the Taskforce on Climate-related Financial Disclosures (TCFD).
The latest version of the framework includes an expansion on the draft disclosure recommendations to incorporate the impacts of nature, alongside the risks and opportunities to the organisation.
The new draft also proposes new disclosure recommendations that would compel schemes to report on supply chain traceability, the quality of their stakeholders, and whether a company's climate and nature targets are aligned to the TNFD.
The new version also includes a flexible approach when it comes to the application of the TNFD's recommendations to factor in the varying circumstances of those who draft reports and to encourage companies to increase their disclosure ambitions in the future.
The TNFD also revealed it plans to publish two papers relating to scenarios and the societal impact of nature-related financial disclosures and to encourage contribution to the nature-related financial reporting work that has already been carried out by the TNFD.
The final draft version of the framework is expected to be published in March 2023, ahead of the final version which is expected to be published in September 2023.
TNFD co-chair David Craig said: "Together with the previously released draft disclosures on risks and opportunities aligned with the approach and language of TCFD, version 0.3 of the TNFD beta framework now provides a full spectrum of recommended disclosures across dependencies, impacts, risks and opportunities to support the reporting preferences and compliance requirements of report preparers everywhere.
"Our objective is to provide the TNFD framework as a powerful tool that helps move business and finance to take action on nature-related dependencies, impacts, risks and opportunities sooner rather than later.
"This framework will encourage increasing disclosure ambition over time, essential to aligning financial flows and business activities to the task of urgently halting and reversing nature loss; and ensuring that both business and finance become more resilient in the face of the increasing frequency and magnitude of nature-related risks that are clearly apparent today."
