The Taskforce on Nature-related Financial Disclosures (TNFD) and European Financial Reporting Advisory Group (EFRAG) have published an outline of the correspondence between their respective disclosures and metrics. The TNFD’s framework and EFRAG’s European Sustainability Reporting Standards (ESRS) have a high level of commonality, the two bodies determined, with all 14 TNFD recommended disclosures reflected in the ESRS. Areas of alignment include: both the TNFD and ESRS recommend the need to disclose nature-related impacts, risks and opportunities; the ESRS specify double materiality disclosures, where the TNFD enables approaches including double materiality; and the ESRS state that companies may conduct biodiversity and nature-focused materiality assessments using the TNFD’s LEAP approach. “As market participants from over 45 countries have started to assess and report on their nature-related issues aligned with our recommendations, many have asked us for further guidance to ensure their reporting complies with their mandatory EU Corporate Sustainability Reporting Directive requirements,” said Tony Goldner, Executive Director of TNFD. “We look forward to continuing to collaborate with the EU in the development and sharing of practical guidance to ensure high-quality, consistent sustainability reporting disclosures.” The correspondence table follows two years of close collaboration between EFRAG and TNFD as both sets of standards were developed in parallel.
