What's next?

To support that, the TNFD will recommend new nature-related disclosures for financial services firms and corporates. In the financial sector, it has proposed banks, insurance companies, asset managers, asset owners and development finance institutions as priority financial industries for the development of specific guidance.

Food & beverage

Meat, poultry, dairy and agricultural products, alcoholic and non-alcoholic beverages, and processed foods.

Transportation

Cruise lines, marine transportation.

Consumer goods

Apparel, accessories and footwear.

PROPOSED NON-FINANCIAL PRIORITY SECTORS

It has also developed a list of proposed non-financial priority sectors – sectors more likely to be financially impacted than others due to their exposure to dependencies and impacts on nature – for the development of sector-specific guidance.32

Resource transformation

Chemicals.

Health care

Biotechnology and pharmaceuticals.

Renewable resources & alternative energy

Forestry management, pulp and paper and biofuels.

Infrastructure

Engineering and construction services.

Utilities

Water utilities and distributors, electric utilities and power generators

Extractives & mineral processing

Construction materials, metal and mining, oil and gas exploration and production.

It is yet to be seen whether the TNFD will have the broad impact of the TCFD, but it will be significant for some companies.

Could the TNFD follow the TCFD and become the basis for mandated disclosure requirements? That will be determined by regulators in each jurisdiction, the TNFD says – but adds that it is “receiving strong interest from policy makers and regulators in a number of jurisdictions”.33

After four beta versions of the framework, the TNFD plans to release the first version of its full framework for market adoption in September 2023.34