TNFD in a Box: understanding and assessing nature-related issues

The Taskforce on Nature-related Financial Disclosures (TNFD) begins the roll-out of a new educational resource, TNFD in a Box, for businesses and financial institutions.

As the spotlight on nature loss and climate change intensifies, there is growing acknowledgement globally of the urgent need for companies and financial institutions to understand and reduce their role in driving these twin crises, and to address the growing risks of declines in the resilience of nature for business and finance.

In September 2023, the Taskforce on Nature-related Financial Disclosures (TNFD), launched final recommendations for businesses and financial institutions to report, and act on, their evolving nature-related dependencies, impacts, risks and opportunities.

To support companies and financial institutions with understanding nature in relation to business and finance, and what is involved with getting started with the TNFD recommendations, TNFD has begun the roll-out of a new educational resource, TNFD in a Box.

The educational resource is designed to help organisations get started with the TNFD recommendations, providing them with an overview of the importance of nature as a strategic risk management issue, as well as how to identify, assess and report on their nature-related dependencies, impacts, risks and opportunities.

Designed to be used by companies and financial institutions as the foundation for internal education focused on the TNFD recommendations, the first phase of TNFD in a Box, launched in December 2023, comprises four learning modules:

• A board-level overview, introducing nature-related disclosures and the TNFD.
• ‘The Nature-Business Nexus’, outlining why nature matters to business and finance.
• An overview of the TNFD, summarising its approach and recommendations.
• The TNFD Recommendations, explaining the TNFD’s Recommended Disclosures.

Access TNFD in a box

In January 2024, the second phase of the resource will be rolled out, and will comprise modules covering:

• ‘Assessment Guidance – the LEAP Approach’, covering how to identify and assess nature-related issues.
• Additional assessment guidance, providing further detail on the TNFD’s approach to metrics, targets, scenarios, data and stakeholder engagement.

“Global Canopy is delighted to have supported the development of TNFD in a Box for the TNFD. Businesses and financial institutions will find it an invaluable educational resource for getting started with the TNFD recommendations. Its workshop-ready slides will be a helpful asset to inhouse sustainability teams looking to enhance colleagues’ understanding of nature in business and finance contexts, and to help them secure buy-in from senior leadership in their organisations to start adopting the TNFD.”

Helen Beddow, Education and Learning Director, Global Canopy

Global Canopy is a founding partner of the TNFD, and was an official piloting organisation for the TNFD prior to the launch of the TNFD final recommendations in September 2023. It continues to provide technical expertise to the TNFD, and to build capacity among businesses and financial institutions, preparing them to get started with adopting the TNFD recommendations.

Access TNFD in a box

When getting started with the TNFD recommendations, businesses and financial institutions must undertake an assessment of their nature-related issues. There are a number of tools available to support them with this. Among those highlighted by TNFD in a Box is ENCORE, which was jointly developed by Global Canopy, UNEP-FI and UNEP-WCMC. The free, online tool provides financial institutions with data that enables them to identify the nature-related risks they are exposed to through their lending, underwriting and investment in high-risk industries and sub-industries.

The TNFD recommends organisations take the LEAP (Locate, Evaluate, Assess, Prepare) approach to determine and disclose their nature-related issues. Financial institutions can deploy ENCORE as part of the LEAP approach to undertake a high-level screening that identifies: the high-risk sectors and production processes to which their portfolios are exposed; and the exposure of their portfolios to ‘high’ and ‘very high’ impacts on nature, and dependencies on ecosystem services. TNFD in a Box features a case study of how ENCORE has supported Netherlands-based international asset management firm Robeco.

Explore ENCORE