20/09/2023 - EFRAG congratulates the Taskforce on Nature-related Financial Disclosures (TNFD) for its Recommendations for Nature-Related Risk Management and Disclosure

​We welcome the TFND Recommendations as the groundbreaking framework that enables companies to assess, disclose and manage nature-related risks and impacts and which will support a more relevant and comparable reporting on nature-related risks and impacts by businesses and financial institutions worldwide.

EFRAG has used TNFD's work as key reference for the drafting process of the ESRS adopted by the European Commission as delegated act on 31 July 2023, in particular ESRS E4 Biodiversity and ecosystems, and looks forward to continuing cooperating with the TNFD.

Patrick de Cambourg, EFRAG SRB Chair, stated:

"Congratulations to the TFND for this milestone in a fundamental sustainability momentum! The TFND Recommendations for Nature-Related Risk Management and Disclosure come at a critical time and we can only encourage the standard setting community and companies to take full account of them. In the standard setting scene, they fill the gap of a much needed global framework for nature, corresponding to what the TCFD has done on climate. We look forward to continuing a close cooperation with TNFD in order to achieve high alignment and support companies in their green path."

Chiara Del Prete, EFRAG SR TEG Chairwoman, said:

"We are delighted to welcome the TNFD recommendations. In our standard setting activity leading to the issuance of ESRS E4, our standard on biodiversity and ecosystems, EFRAG benefitted from working closely with the TNFD Staff. ESRS E4 is structurally compliant with TNFD and incorporates key content from it. Our standard also encourages best practices in the materiality assessment, such as the optional adoption of the sequence of the Locate, Assess and Prepare (LEAP) framework. We look forward to continuing a close cooperation with the TNFD, including to incorporate further these Recommendations in our future work on sector standards."

Visit TNFD's official website for information on the TNFD Recommendations for Nature-Related Risk Management and Disclosure.