Ways to pilot test: Three-tiered approach

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Ways to pilot test: Three-tiered approach

Introduction

The TNFD Secretariat has developed a three-tiered approach to encourage and support pilot testers.

Additional Content

Figure: Ways to pilot test – Three-tiered approach figure

A. Independent pilot testing

The TNFD framework online platform is designed to enable organisations everywhere to undertake their own independent and self-guided, self-paced testing of the beta framework. The online platform is updated with additional guidance at the time of each beta release to support independent pilot testers. This includes additional information on tools, metrics, targets and data to apply the framework.

Independent pilot testers can provide feedback online on key priority questions and technical areas that the Taskforce will set out in advance of each release.

Collaborative pilot testing

The TNFD encourages pilot testers to consider testing the framework in collaboration with others. This might include, for example, a financial institution and an investee company undertaking a pilot test together. Collaborative testing with industry peers through industry associations or other convening organisations might also be considered, including the pilot test programs organised by TNFD’s piloting partners and outlined on our website. Collaborative feedback is also encouraged to support independent pilot testing.

Additional Content

Table: Types of collaborative pilot testing

Type of organisation	Potential roles
Asset owners/institutional universal owners	Engage asset managers, their clients and data providers to share perspectives on the TNFD beta framework, including the LEAP-FI approach for financial institutions. Engage other institutional stakeholders to advance nature-positive outcomes associated with their portfolio of investments.
Convening organisations, industry associations, coalitions, and agenda-setters	Leverage links to different financial and non-financial organisations to encourage pilot testing and facilitate feedback to the TNFD. Provide collective learning, engagement and communication opportunities to discuss and share insights and learning from pilot testing of the beta framework. Commission supporting research to share with the TNFD Secretariat.
Development, civil society and governmental agencies	Support and convene organisations to review the TNFD beta framework, share perspectives and provide feedback to the TNFD Secretariat.

Case Studies

Examples of collaborative pilot testing

TNFD-supported pilot example: Palm oil in Southeast Asia

Global Canopy convened a small group of organisations to undertake a desktop review of the first beta version of the TNFD framework v0.1. The pilot focused on organisations that operate within, or invest in, palm oil supply chains.

Participants were walked through the recommendations laid out in the beta framework across the three core components of the framework: TNFD’s definitions for understanding nature, draft disclosure recommendations and the LEAP approach for assessing nature-related risks and opportunities. For LEAP, its official components were presented with additional relevant examples, metrics, tools and data sources.

Participants were then asked to complete questionnaires to gather feedback on the clarity and coherence of concepts, the readiness of their organisations to assess and disclose nature-related risks and opportunities, and their recommendations for the TNFD on how to further develop the framework.

A detailed summary of high-level lessons learned and recommendations from the pilot will be available in July 2022.

TCFD pilot testing example: Storebrand and Equinor

This collaborative evaluation of the TCFD framework by Storebrand and Equinor provides an example of the insights that can be generated by working in partnership with others through collaborative pilot testing.

B. Pilot testing by TNFD Forum member organisations

For pilot testers that are TNFD Forum member organisations, the TNFD Secretariat will provide limited technical support and community learning opportunities to enable Forum members to share perspectives and insights gained from pilot testing experiences. This will take the form of:

Online webinars for each beta release of the TNFD framework, providing details on the new components and revisions.
Focus groups to share learning and insights on key aspects of the beta framework, based on feedback from pilot testers; and
Online engagement initiatives to address specific technical issues of shared interest.

Access to these shared learning opportunities for Forum member organisations will be provided globally. Focus groups may also be run at a national level through TNFD Consultation Groups, where they exist.

C. TNFD-supported pilot partner programs

Structured pilot testing programmes are being established with a small number of partners with the expertise and resources to manage a portfolio of pilot tests on behalf of the TNFD.

The TNFD has established pilot testing program partnerships with initial five organisations to support the TNFD with the testing of the beta framework across geographies, key sectors and supply chains:

UNEP FI.
the World Business Council for Sustainable Development (WBCSD).
FSD Africa.
Global Canopy; and
the International Council of Mining and Metals (ICMM).

The TNFD will continue to explore additional piloting partner programmes to ensure that comprehensive testing of the beta framework is undertaken across sectors, geographies, biomes and supply chains.

Additional Content

Table: TNFD's initial piloting programme partners

Piloting partner	Pilot tests overview
UNEP FI	UNEP FI is inviting organisations that are members of its various membership networks (Principles for Sustainable Insurance, Principles for Responsible Banking) and industry platforms (Net Zero Alliances) to join one or more UNEP FI-led pilots in support of the TNFD. UNEP FI is developing 6 pilots, which all have both a sectoral and geographical lens: 2 pilots focused on Latin America (salmon aquaculture and forestry) 2 pilots focused on Asia (rubber extraction in Indonesia and paper and pulp in Vietnam) 1 pilot focused on Europe (offshore wind farms) 1 pilot focused on Africa (cobalt and lithium mining in the Congo Basin) Note: This list will be updated based on discussions with interested parties UNEP FI is inviting participation from a minimum of 5 financial institutions for each pilot, including one representative from each finance industry group (banking, insurance, investing) and a minimum of one representative from emerging markets. Participation in pilots will be mindful of both sectoral and geographical representation.
WBCSD	WBCSD is convening three real-economy TNFD Pilot Groups: Land-based (Food, Agriculture and Forestry) Energy (Oil and Gas, Electric Utilities), and Built Environment (Real Estate, Construction and Materials). These groups will draw on WBCSD’s experience with TCFD Preparer Forums and WBCSD’s nature-positive sectoral roadmaps within their Nature Action and their Redefining Value program priorities. In addition to the above, WBCSD will seek to connect with its Global Network Partners (national business organisations affiliated to WBCSD) in priority jurisdictions to align with and/or catalyse jurisdictional approaches to piloting the TNFD framework.
FSD Africa, through the African Natural Capital Alliance (ANCA)	FSD Africa – through the African Natural Capital Alliance (ANCA) – is engaging African financial institutions with the TNFD in two phases: Firstly, FSD Africa is demonstrating the need for improved nature-related risk management in Africa through a landmark quantitative assessment of risk and opportunity for financial institutions. Secondly, FSD Africa is collecting feedback for the TNFD through pilot programs aligned with the emerging framework. This stream sees five ANCA ‘champions’ pilot the LEAP approach in a critical and reflective manner, designed to improve the framework’s applicability. Run in collaboration with the United Nations Economic Commission for Africa, the pilots have broad geographical and sectoral exposure and reflect how the TNFD may assess a range of asset classes. Strong engagement by African financial institutions, regulators and sovereign stakeholders early in the development of the TNFD framework is critical. It ensures that the initiative is designed to be effectively applied across Africa, mitigating the risk of creating additional barriers to investment in the African continent and creating a clear narrative around high-priority risks and opportunities.
Global Canopy	Global Canopy aims to work on a suite of pilots to harvest market-based feedback on the TNFD framework design, focusing on several sectors, including: gribusiness and forestry; impact/dependency pathways. Global Canopy has completed the first pilot test of the first version of the beta TNFD framework (v0.1) with organisations operating within, or investing in, palm oil supply chains. The TNFD beta framework was tested alongside additional technical guidance, which was developed specifically to help participants interpret requirements laid out in the framework by highlighting data, metrics, tools and examples relevant to the palm oil sector. The palm oil pilot followed Global Canopy and UNEP FI’s nature-related reporting pilot project in soy supply chains that began in 2021, which informed the first beta version of TNFD’s framework. In their forthcoming pilot tests, Global Canopy will help organisations explore how they can leverage existing tools to implement the TNFD’s recommendations, particularly the open source and science-based ENCORE tool for assessing nature-related dependencies and impacts.
International Council on Mining and Metals (ICMM)	ICMM will support their members to pilot the TNFD framework aimed at identifying common challenges and opportunities around implementation. ICMM will also work with TNFD to tailor member pilots where possible, to focus on different operating contexts, commodities and key focus areas for the industry, e.g. around water, mine closure or mining and protected areas. Pilot findings will be used to provide pragmatic and solution-orientated feedback into the development of the framework, while identifying areas where sector-specific guidance and or disclosure recommendations may be required. Non-members in the sector are welcome to engage and are encouraged to get in touch.

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