Draft recommended disclosures

: Disclosure Metrics Annexes

The following metrics should be used to support Metrics and Targets B and Strategy A disclosures.

The TNFD is proposing a set of 10 core global indicators for disclosure, relating to dependencies and impacts on nature (Metrics and Targets B and Strategy A). These core global indicators and metrics are outlined in Table 1. They relate to impact drivers within ecosystems on which the organisation has an impact or dependency.

To demonstrate their alignment with global policy goals such as the Global Biodiversity Framework (GBF) and other international conventions and international policy commitments, the TNFD strongly encourages organisations to include disclosures against all of the core global indicators of relevance to their business model, sector(s), biome(s) and priority locations.

If organisations do not report against any of the core global indicators and metrics listed in Table 1, they should provide a short explanatory statement as to why they have not reported.

The following considerations should be made in relation to the dependency and impact metrics:

• They should be considered in conjunction with the disclosure guidance for recommended disclosure Metrics and Targets B, which also considers external trends, changes to the state of nature and ecosystem services, and contextual information regarding measurement techniques, limitations and assumptions.
• For each metric disclosed, organisations should state the measurement baseline and indicate the percentage change from the previous reporting period.
• It is best practice to disclose metrics separately for the organisation’s direct operations, upstream activities and downstream activities, and any financed activities in the case of financial institutions. Acknowledging that this may not be possible for all organisations at this time, organisations should disclose direct operations at a minimum, and upstream and downstream activities where relevant and to the extent possible. At this point, the TNFD particularly encourages reporting upstream activities, as well as direct impacts, for metrics focused on the use of natural commodities.
• Organisations should state the location the metric refers to, referring back to the priority location identified in recommended disclosure Strategy D where relevant. For impact drivers, organisations should ensure the metric enables report users to determine what the impact driver is (i.e. what type of pollutant has been emitted), how much impact has taken place (i.e. the volume of pollutant emitted) and where the impact is located, with reference to spatial data where possible.

This draft set of core indicators and metrics will be revised based on feedback on the v0.4 TNFD draft beta release and a final recommended set of core disclosure indicators for dependencies and impacts on nature will be included in v1.0 of the TNFD framework. Release in September 2023.

Overview of nature-related impacts and dependencies 

The TNFD defines:

• Dependencies on nature as aspects of ecosystem services that an organisation or other actor relies on to function;
• Impacts on nature as changes in the state of nature, which may result in changes to the capacity of nature to provide social and economic functions; and
• Impact drivers as measurable quantities of a natural resource that are used as an input to production and measurable non-product outputs of a business that affect nature. They can be positive or negative and can be mapped to the IPBES drivers of nature change. The Taskforce has modified the descriptions of the five IPBES drivers of nature change to reflect both negative and positive changes as a result of an organisation’s interactions with nature.

Figure 1: TNFD’s classification of drivers of nature change, building on the IPBES drivers

ExpandFigure 1: TNFD’s classification of drivers of nature change, building on the IPBES drivers

The TNFD is considering adding another core global dependency and impact metric addressing plastic production and consumption (currently an additional metric). The Taskforce is seeking feedback on whether a metric relating to plastic should be added to the list of core global metrics and if so, what this metric should be, such that it provides decision-useful insight about plastic-related issues for the majority of companies.

Additional disclosure metrics for dependencies and impacts on nature

Organisations should consider reporting the following additional metrics if relevant to the sector and biome in which they operate. The list of additional metrics includes positive impacts on nature and impact drivers that are widespread but do not affect the majority of sectors, such as light and noise pollution and the introduction of invasive species. It also includes metrics for the state of nature (ecosystem condition and extent) and ecosystem services.

The following metrics should be used to support Metrics and Targets A, Strategy A and Strategy B disclosures.

The TNFD Strategy recommended disclosures refer to nature-related risk and opportunities. The TNFD defines:

• Nature-related risks as potential threats posed to an organisation linked to their and wider society’s dependencies on nature and nature impacts; and
• Nature-related opportunities as activities that create positive outcomes for organisations and nature by creating positive impact on nature or mitigating negative impacts on nature.

TNFD’s categorisation of nature-related risks and opportunities is set out in the table below.

The core disclosure metrics and additional disclosure metrics in the tables below will be revised, based on the v0.4 TNFD draft beta release, and a final recommended set of disclosure indicators and metrics for nature-related risk and opportunities will be included in the v1.0 TNFD Release in September 2023.

The TNFD strongly encourages organisations to include disclosures against all of the core global indicators. If organisations do not report against any of the indicators and metrics listed in Table 4, they should provide a short explanatory statement as to why they have not reported.

The tables below, which provide additional risk and opportunity indicators and metrics, are non-exhaustive and should be considered within the context of the most material risks and opportunities for the reporting organisation.

The following metrics should be used to support the Risk and Impact Management B disclosure.

The below list is non-exhaustive and each organisation should consider the most appropriate response metrics for its unique business model and reporting context. All suggested metrics in the table below are additional.

Organisations in the agriculture and food sector should disclose the following metrics for recommended disclosures Metrics and Targets B and Strategy A. These are relevant to the following sub-sectors and industries, unless otherwise specified:

• Agricultural products;
• Meat, poultry and dairy;
• Processed food;
• Food retailers and distributors; and
• Restaurants.

The TNFD strongly encourages organisations to include disclosures against all of the core sector indicators of relevance to their business model, sector(s), biome(s) and priority locations. If organisations do not report against any of the core sector indicators and metrics listed in Table 1, they should provide a short explanatory statement as to why not.

The Taskforce welcomes feedback on both the number and content of the core sector metrics for the agriculture and food sector proposed here, to inform the final selection for the TNFD v1.0 release in September 2023.

Organisations interfacing with nature in the tropical forest biome should consider disclosing the following metrics for disclosure recommendation Metrics and Targets B and Strategy A. All metrics are additional.