In a world grappling with climate change and environmental degradation, businesses are being urged to become more transparent and accountable about their impact on nature.

Like its counterpart Taskforce on Climate-related Financial Disclosures (TCFD), the Taskforce for Nature-related Financial Disclosures (TNFD) aims to promote disclosure and transparency regarding dependencies and impacts on nature. It is intended to drive businesses to recognise the value of nature in their financial decision-making processes.

The TFND framework covers the organisation’s dependence and impacts on biodiversity, including land-use practices, water, and oceans. More on TFND here.

Many leading Australian companies have already voluntarily adopted the TCFD climate framework. The Australian Government is now consulting on the design of a mandatory climate reporting regime which is expected to cover around 20,000 Australian organisations. ASIC and the ACCC have also flagged that they will target businesses engaged in “greenwashing”.

The Australian government has been a major funder of the TNFD, but has not given a firm public commitment to mandate its use. But, if TNFD follows the path of TCFD, significant amounts of private capital are likely to be funnelled into nature-positive projects.

If rigorous standards can be maintained, this is a terrific opportunity for non-profit organisations to partner with business and fund nature-related challenges collectively. Australian charities are well-placed to amplify impact and integrity, and collaborate with business, government agencies and environmental NGOs.

The urgency to launch the TNFD Recommendations was heightened following almost 200 countries signing the Kunming-Montreal Global Biodiversity Framework in December 2022, which set aims such as conserving at least 30% of the Earth’s surface by 2030 and other nature-focused targets.

BHP has announced its commitment to adopting nature positive measures, promising to have at least 30 per cent of the land and water it controls under conservation, restoration or regeneration. Benefits to business can include a lower cost of capital from financial institutions in their credit-risk models.

Nature and climate are two sides of the same coin. TNFD will be a vital foundation upon which high-integrity nature and carbon credit markets can help reverse biodiversity loss.