The Taskforce on Nature-related Financial Disclosures (TNFD), a market-led initiative focused on helping businesses address nature-related risk, has endorsed the use of cross-reference tables to simplify the presentation of TNFD-aligned nature-related disclosures in corporate reporting. This move aims to make it easier for companies to integrate nature-related information into their existing voluntary or mandatory reports, without duplicating efforts or creating separate reports.
The TNFD’s support for cross-reference tables comes after years of collaboration with sustainability standard bodies such as the International Sustainability Standards Board (ISSB), Global Reporting Initiative (GRI), and the European Financial Reporting Advisory Group (EFRAG). These efforts have harmonised the frameworks, ensuring that companies can report on nature-related issues consistently and comparably.
Cross-reference tables will allow businesses to align their sustainability disclosures with the TNFD’s recommendations, making it easier for investors and stakeholders to access relevant data. This approach also reduces the costs associated with preparing multiple reports while maintaining high-quality disclosures.
The TNFD’s recommendations, first released in September 2023, focus on helping businesses assess and manage nature-related dependencies, impacts, risks, and opportunities. Many companies are already utilizing cross-reference tables to align their reporting with TNFD guidelines, making the reporting process more efficient.
The TNFD is also working on further alignment and interoperability with global standards. As part of these efforts, the TNFD is supporting the ISSB’s ongoing research into biodiversity, ecosystems, and ecosystem services, ensuring that nature-related issues are integrated into financial and business decision-making.
To further enhance alignment, the TNFD is supporting ISSB’s ongoing research into biodiversity, ecosystems, and ecosystem services, ensuring that nature-related risks are embedded in financial decision-making. The TNFD’s LEAP approach also helps businesses conduct thorough due diligence on nature-related risks, equipping them with the tools for strategic action and improved risk management.
At COP16 in Cali, Colombia, this October, the TNFD will announce its next cohort of organisations committed to adopting nature-related reporting, further driving global efforts to align financial flows with nature-positive outcomes.