Second iteration of TNFD beta framework out – Global Canopy to support with market testing

As a founder and piloting partner of the Taskforce on Nature-related Financial Disclosures (TNFD), Global Canopy welcomes the second beta version of the TNFD’s framework for nature-related risk management and disclosures released today for consultation, and prepares to pilot test the framework with market participants.

Designed to support companies and financial institutions to robustly assess and report on their commercial risks and opportunities related to nature, the TNFD beta framework holds significant potential to catalyse change at scale. Improved internal risk assessments across business and finance would lead to more data-driven action on nature protection and restoration. More and better reporting on those risks would in turn allow investors, lenders and insurers to take informed decisions and eventually shift their financial flows away from companies and projects that drive nature-destruction or fail to mitigate their reliance on fragile ecosystems.

V0.2 of the TNFD beta framework builds on the first iteration released in March, with one of the most notable additions being TNFD’s proposed approach to metrics.

Alongside the updated framework itself, the Taskforce is also releasing a TNFD piloting guide, which is jointly published by TNFD and its piloting partners, Global Canopy, FSD Africa via the African Natural Capital Finance Alliance, ICMM, UNEP FI and WBCSD. Pilot testing of the TNFD beta framework will run to 1 June 2023.

Today’s v0.2 release will be followed by v0.3 in November 2022 and v0.4 in February 2023, before the Taskforce releases its final framework in September 2023.

“The new iteration of the TNFD beta framework marks another step towards the data-driven, global response to the nature crisis that we urgently need to see across finance and business. As an official TNFD piloting partner, Global Canopy will continue to support the development of a practical, science-based TNFD framework by running a portfolio of pilot tests on this prototype with market players across sectors with high impacts and dependencies on nature.”

Marianne Haahr, Nature-related Finance Lead, Global Canopy

Global Canopy’s portfolio of pilot tests of v0.2 (and future iterations) of TNFD’s beta framework will follow on from our pilot test of v0.1 of TNFD’s beta framework with companies and financial institutions in the palm oil sector, which was the first official TNFD-supported pilot globally. Findings will be published in July.

You can explore and provide feedback on the second beta version of the TNFD framework on TNFD’s new interactive online platform. The Taskforce welcomes feedback until 1 June 2023.