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European Sustainability Reporting Standards (ESRS) E4 Biodiversity and Ecosystems Reporting Standard — provides disclosure guidance on actions, results, plans, capacity, risks and opportunities and financial effects on the undertaking due to nature related impacts and dependencies. Reporting on these topics is mandated by the EU Corporate Sustainability Reporting Directive (CSRD) issued by the European Financial Reporting Advisory Group (EFRAG) for both EU companies and many non-EU companies (including U.S.) that have operations in the EU.
Task Force on Nature-Related Disclosures (TNFD) — created to build on the TCFD disclosure recommendations to encourage businesses to assess, report on, and act on nature-related dependencies, impacts, risks, and opportunities. The goal: to help “shift global financial flows away from nature-negative outcomes and toward nature-positive outcomes.” The TNFD guidance for disclosure was provided in Fall 2023 and more than 400 organizations have agreed to use the disclosures to date.
EFRAG and TNFD have made a mapping resource available to help companies with the common “nature-related” disclosure requirements of the ESRS and the TNFD.
The “LEAP” guidance of TNFD helps organizations in identifying and assessing nature-related issues for the TNFD recommendations, based on these steps: Locate, Evaluate, Assess, and Prepare. The goal of the LEAP process is to help companies conduct a thorough due diligence assessment as a foundational step to report in alignment with TNFD.
Stressing the importance of “Mother Nature” reporting, investors are picking up on the theme of “nature-related” risk, opportunities, corporate impacts, and systemic risk. A group of 200 investors managing assets totaling US$15 trillion organized by the Principles for Responsible Investment (PRI) is urging companies to align global biodiversity targets with corporate policies, operations and practices. Sixty companies were engaged to begin the initiative.
G&A Institute has developed comprehensive processes to assist corporate clients in responding to stakeholder demand for nature-related disclosure by utilizing a variety of frameworks and standards, complying with regulations, and embracing the TNFD LEAP approach. For more information, connect with G&A here.
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