Investors and other stakeholders need to understand how an organisation measures and monitors its nature-related risks and opportunities. Access to the metrics and targets used by an organisation allows investors and other stakeholders to better assess the organisation’s potential risk-adjusted returns, ability to meet financial obligations, general exposure to nature-related risks and opportunities, and progress in managing or adapting to those risks and opportunities.
Disclose the metrics and targets used to assess and manage relevant
Recommended Disclosure a)
Organisations should provide the key metrics used to measure and manage nature-related risks and opportunities.
Where nature-related risks and opportunities are material, organisations should consider describing whether and how related performance metrics are incorporated into remuneration policies.
Where relevant, organisations should provide any analysis of shadow prices for ecosystem services, as well as nature-related opportunity metrics, such as revenue from products and services designed for a nature-positive economy.
Over time, metrics should be provided for historical periods to allow for trend analysis. Where appropriate, organisations should consider providing forward-looking nature-related metrics, consistent with their business or strategic planning time horizons. In addition, where not apparent, organisations should provide a description of the methodologies and assumptions used to calculate or estimate nature-related metrics.
Note – Further guidance on metrics will be developed by the Taskforce for inclusion in future beta releases of the TNFD framework.
Disclose the metrics used by the organisation to assess material nature-related risks and opportunities in line with its strategy and risk management process.
Recommended Disclosure b)
Guidance for All Sectors
Note – Adaptation of this TCFD recommended disclosure is under ongoing consideration by the TNFD Taskforce members for inclusion in future beta releases of the TNFD framework.
[Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks.]
Recommended Disclosure c)
Guidance for All Sectors
Organisations should describe their key nature-related targets, including location-specific targets for priority locations, where relevant, and in line with anticipated regulatory requirements or market constraints or other goals.
In describing their targets, organisations should consider including the following:
- whether the target is absolute or relative;
- time frames over which the target applies;
- base year from which progress is measured; and
- key performance indicators used to assess progress against targets.
Organisations disclosing medium-term or long-term targets should also disclose associated interim targets in aggregate or by business line, where available.
Where not apparent, organisations should provide a description of the methodologies used to calculate targets and measures.
Note – Further guidance on targets will be developed by the Taskforce for inclusion in future beta releases of the TNFD framework.
Describe the targets used by the organisation to manage nature-related risks and opportunities and performance against targets.