Nature-related disclosures are garnering a lot of attention lately. We’ve discussed the Taskforce on Nature-related Financial Disclosures (TNFD) and their nature-based disclosure standard, as well as opinions by some who believe that legal duties may exist to disclose nature risks. Recently. the topic has seen even more attention as TNFD collaborates with the Global Reporting Initiative (GRI) on interoperability. PA Future discusses the collaboration stating:
“Responding to feedback from both TNFD Forum member organisations and GRI Community members, both institutions are working on the mapping document to provide a detailed overview of alignment between the TNFD disclosure recommendation, released in September 2023, and the recently published GRI 101: Biodiversity 2024 standard.”
The groups worked together previously with the TNFD assisting GRI in developing GRI’s 101: Biodiversity 2024 standard. Working alongside GRI certainly raises the TNFD’s profile as GRI is one of the primary standard-setting organizations and a champion of the double materiality approach to disclosures. The true test for nature-related disclosures will be the adoption of mandatory standards by a major global market. While there are no signs of this happening yet, the attention being paid by major standard setters and market participants certainly point to the possibility. Nature-related disclosures are seen by some as being a natural evolution of climate-related disclosures, just as the TNFD framework is built upon the Taskforce on Climate-related Disclosure’s previous work. However, in a world that is struggling to accept climate-related disclosures, the expansion into nature may be seen as a bridge too far by many.
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