With the world now attuned to the importance of sustainability, businesses are expected to account for their impact on nature. Regulations like the Corporate Sustainability Reporting Directive (CSRD) are a key driver, with large EU companies with more than 500 employees required to report from next year.
The Task Force for Nature-Related Disclosures (TNFD) framework is a pioneering initiative designed to help companies understand and disclose their dependencies and impacts on nature as well as the opportunities and risks these pose to the business and nature. Businesses can use the framework to develop nature strategies and prepare disclosures for regulations such as CSRD. The TNFD website provides comprehensive resources on adopting and implementing the framework, along with a tools catalogue (where you will find Earth Blox), to help businesses get started.
If you are new to TNFD, there is a lot to get up to speed with, from core concepts and terminology to the LEAP process, designed to help organisations assess their nature-related issues. So, we built a high-level overview for sustainability managers like you. We introduce you to the concepts behind nature reporting, what’s needed to produce a TNFD disclosure, and how you can get started quickly using spatial data from Earth Blox. Take a look here: Earth Blox TNFD Guide.
Why you should consider the TNFD framework
Wondering if the TNFD framework is the best way to understand nature-related issues for your business? Here are four reasons to consider it:
1. Uncover risks and opportunities
The TNFD framework goes beyond disclosure of your impact on nature; it’s a tool for understanding how your organisation’s dependencies on nature may affect your bottom line. With over half of the world’s total GDP being either moderately or highly dependent on nature, the associated risks are substantial. Ignoring these risks can be perilous. By adopting the TNFD framework, businesses can uncover hidden vulnerabilities and opportunities, ensuring they are better equipped to navigate the complexities of the natural world.
2. Meet the expectations of investors and consumers
Today's investors and consumers are increasingly prioritising sustainability. They expect companies to take significant steps towards protecting and preserving nature. By adopting the TNFD framework, your business can demonstrate a genuine commitment to sustainability, thereby meeting these growing expectations and strengthening your reputation among stakeholders.
3. Comply with existing legislation
Compliance is a key concern for many businesses. CSRD, for example, requires companies to conduct materiality assessments. The TNFD’s LEAP approach provides an effective methodology for this, giving your business a robust and repeatable process to assess and disclose nature-related issues.
4. Be ready for future standards
The landscape of sustainability reporting is evolving. The International Sustainability Standards Board (ISSB) is anticipated to release new standards on nature-related issues, drawing heavily from TNFD recommendations. Companies that proactively start assessing their nature-related issues using TNFD guidance will be well-prepared to align with these forthcoming standards, ensuring a smoother transition and continued compliance.
Getting started with the LEAP process
The LEAP process is at the heart of TNFD’s framework, offering a structured approach to integrating nature-related disclosures into your business operations. The LEAP process is made up of four stages:
- Locate: Identify the locations where your business interacts with nature.
- Evaluate: Assess the dependencies and impacts of these interactions.
- Assess: Analyse the risks and opportunities associated with these dependencies and impacts.
- Prepare: Develop strategies to mitigate risks and leverage opportunities, and prepare your disclosures.
Learn about the LEAP process here.
Leveraging geospatial data with Earth Blox for LEAP assessments
One challenge many businesses face when reporting on nature-related issues is access to accurate and relevant data. This is where Earth Blox comes in. Our software harnesses the power of geospatial data to help businesses quickly and effectively complete the Locate and Evaluate stages of LEAP. By providing detailed insights into your company’s environmental footprint, Earth Blox enables you to make informed decisions that align with both current and future reporting standards.
Explore our TNFD Guide
Ready to dive into the TNFD framework and take your sustainability efforts to the next level? Our guide is here to help. Get up to speed on the core concepts and terminology underpinning TNFD, understand the LEAP framework in detail, and discover how Earth Blox can support your journey towards sustainable business practices.
Explore the Earth Blox TNFD Guide here.