Introduction to the Framework

: Approach to metrics

The TNFD’s approach to measurement has been developed with the objectives of ensuring or supporting:

• Decision-useful information for report users;
• Practicality for report preparers to assemble, assess and report information at reasonable cost, on an annual report cycle basis and subject to limited assurance;
• Comparability across and within sectors by report users; and
• Alignment to global and national policy goals and targets, such as those in the Global Biodiversity Framework and other international treaties, as organisations are now aligning to the Paris Agreement and net zero targets.

The TNFD recognises that the current state of nature-related data available to market participants[1] means that it is challenging to achieve all of these objectives simultaneously. Nevertheless, rapid innovation in data, analytics and technology means that many of the constraints will ease in the coming years. The Nature-related Data Catalyst initiative established by the TNFD is one effort to accelerate such solutions.

In light of this, the TNFD identified seven design features:

1. A distinction between:
   1. Assessment metrics used internally by report preparers to inform management decisions, and linked to the phases of the LEAP approach, and
   2. Disclosure metrics to be published in disclosures for report users on a comply or explain basis.
2. A distinction between cross-sector metrics and sector- and biome-specific metrics: This is aligned with and builds on the approach of the TCFD, and standard-setting bodies such as GRI, CDSB and SASB (now part of ISSB), EFRAG and CDP.
3. Specification of a set of core disclosure metrics to help comparability within and across sectors on areas of high priority. These are divided into:
   1. Core global metrics, which cover all sectors; and
   2. Core sector metrics, which are sector-specific.

There is a further set of additional disclosure metrics that are recommended, but not required.

4. Inclusion of indicators and metrics that allow assessment of both positive and negative impacts on nature.
5. Alignment with the phases of the LEAP approach to support end-to-end nature-related risk assessment, management and disclosure.
6. A periodic review mechanism to ensure the measurement architecture remains fit for purpose as knowledge and tools evolve.
7. Alignment with emerging global and national policy priorities, standards and target setting frameworks, such as the Global Biodiversity Framework (GBF); the standards under development by the International Sustainability Standard Board (ISSB) and Global Reporting Initiative (GRI); nature-related reporting regulations, such as the European Sustainability Reporting Standards (ESRS); and corporate target setting approaches, such as those being developed by the Science Based Targets Network (SBTN).

Versions 0.2 and 0.3 of the TNFD beta framework included guidance on assessment metrics for the Locate, Evaluate and Assess phases of LEAP. This draft of the beta framework completes the TNFD’s measurement architecture with:

• A set of draft assessment metrics across all phases of LEAP;
• Updated guidance on metrics for the Locate phase of LEAP (location prioritisation metrics);
• New guidance on metrics for the Prepare phase of LEAP (response metrics); and
• A set of draft disclosure indicators and metrics, split into:
  • Core metrics to be published on a comply or explain basis:
    • Global core metrics for all sectors; and
    • Core sector metrics; and
  • Additional disclosure metrics.

This is summarised in Table 5.

Figure 11: Types of metrics in the context of the LEAP approach -Please ask epls to update Figure 3 from v0.2 with the revised LEAP approach, showing where assessment and disclosure metrics fit, and add here

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