The Implications of the TNFD Recommendations

The Task Force on Nature-related Financial Disclosures (TNFD) TNFD has recently published its disclosure and reporting recommendations, and the implications are game changing. “Nature is now a strategic management issue.” 

The TNFD is set to revolutionise the way we recognise and value an organisation's nature dependencies and actions. This translates into a significant financial incentive for businesses, and it's a major step towards steering our planet to a sustainable future. 

Companies across the world are now moving to formally applying the standards and for many it will be a big adjustment.   

Always leading with science, we worked with teams across Tetra Tech to pilot test how financial metrics aggregate scientific input while the TNFD was in beta mode. We're well aware that the impact of an organisation's operations on nature and biodiversity is far from straightforward, making the journey unique for everyone. The good news? Eco Logical Australia have expertise in biodiversity and nature metrics to help you navigate the first step: understanding your nature interface. 

Let's break it down: 

• The TNFD focuses on the organisation as a whole, not just individual projects. It's about assessing your impact on nature across all operations, from upstream to downstream and throughout your supply chain. 

• Understanding and avoiding nature dependencies is cost effective. 

• The mitigation hierarchy is already legislated in many jurisdictions across Australia and companies can expect heightened scrutiny on efforts to avoid and minimise environmental impacts in projects, leading to reduced reliance on environmental offsets.  

• TNFD is consistent with the sustainability reporting standards of the International Sustainability Standards Board (ISSB) and Global Reporting Initiative (GRI). 

• If an organisation genuinely pursues the TNFD principles across its operations and supply chains, it can reduce impacts to nature and help the shift to nature-positive future whilst minimising physical and transition risks. 

• TNFD is currently opt in and you can join Community of Practice – TNFD to build skills, capacity and confidence. 

Curious to know more about what for your business nature interface? Don't hesitate to get in touch with a member of our team. 

Sophie Powrie- Principal Environmental Consultant and NRM Lead, SophieP@ecoaus.com.au

Meredith Henderson- Senior Principal Ecologist and National Ecology Lead, MeredithH@ecoaus.com.au

Andrew Walsh- Manager Northern NSW and Principal NRM, Andrew.Walsh@ecoaus.com.au

Rebecca Ben-Haim- Senior Consultant Renewables and Approvals Team Lead, Rebecca.BenHaim@ecoaus.com.au

Andrew Whitford- Manager Restoration Ecology and Land Management, AndrewW@ecoaus.com.au

Paul Koch- Senior Ecologist, Paul.Koch@ecoaus.com.au