One year on from the release of the Taskforce on Nature-related Financial Disclosures’ recommendations, more than 400 organisations – including 63 from the UK – have committed to begin reporting on nature-related issues.
And just two weeks ahead of the COP16 global biodiversity summit, new guidance from IEMA will help simplify the process, allowing small businesses to adapt to making nature-related disclosures.
The new guidance document, Business Actions on TNFD: A primer on roles and reporting using the Taskforce on Nature-related Financial Disclosures Framework, has been published today by IEMA as a guide for SMEs engaging with the Framework for the first time.
The Taskforce on Nature-related Financial Disclosures is a global initiative that provides a framework for organisations to assess, report and act on their nature-related dependencies, impacts, risks and opportunities.
The market-led and science-based initiative advocates the importance of nature and ecosystem services to business decision-making processes and the global economy, and suggests there is growing evidence that undervaluing ecosystem services poses significant risks for businesses, capital providers, financial systems and economies.
Hundreds of organisations volunteered to adopt the TNFD’s recommendations within the first year, including IEMA corporate partners the BBC, Speedy Hire, and RSK Group.
RSK, a group of 200 environmental, engineering and technical services businesses, have been supporting clients in many sectors, from forestry and agriculture to construction and manufacturing, through to financial services, to use the TNFD Framework.
Tom Mason, Associate Director of the RSK Group company Nature Positive, said: “By utilising the TNFD LEAP approach, we have helped companies understand where and how their activities impact or rely on nature, and our clients have been able to identify financial, physical, litigation, or reputational risks related to nature which were previously unknown.
“For SMEs, aligning with TNFD is a great opportunity because it enables them to adapt to longer-term, emerging challenges resulting from changing regulatory or environmental factors, and adapt their strategy accordingly. SMEs can often be more effective at adapting to this versus bigger companies, because they are typically closer to their suppliers and potential impact sources, with potentially greater levels of influence – albeit on a smaller scale.”
With this year’s UN Biodiversity Conference in Colombia, COP16, approaching later in October, this new guidance paper from IEMA will help address the basics of engaging with the TNFD Framework for smaller businesses who may not have come across it before.
Produced by IEMA’s Biodiversity and Natural Capital Network, the paper is a beginner’s guide to roles and reporting, using the disclosure recommendations and guidance of the TNFD framework, and aims to:
- Provide a short introduction to the framework and signpost resources
- Show where and how individuals in different sustainability and environmental roles are likely to encounter and engage with the TNFD as part of their work
- Answer some frequently asked questions.
The guidance both sets the scene for using TNFD, points to key policy and practical resources, takes the reader through business roles and IEMA membership levels, and considers how different sustainability professionals will engage with the framework.
The new paper sets out to give professionals a ‘foot up’ by helping them to understand the context of the TNFD, what the TNFD is about, and how it helps business, allowing them to be confident in using this new framework and start to effectively manage their nature-related risks.
With conversations around biodiversity in the lead up to COP16, the new guidance is an opportunity for businesses to adapt to the nature-related disclosure process in order to ease pressures further down the line, and engage with processes that can help them to manage their natural capital more effectively.
IEMA’s Policy and Engagement lead, Lesley Wilson, said: “The products and services of businesses are highly dependent on nature in terms of primary resources, across the supply chain, or even the food in the canteen. However, nature has been increasingly depleted. This is why it’s so important for businesses to understand their impacts on nature but also their dependencies.
“There’s a huge amount of interest in the recommendations provided by the TNFD to better manage nature-related risks. However, the framework can sometimes seem too overwhelming to get started.
“This new guidance paper will help to remove the fear of starting, by providing tangible examples of how people working in the sustainability sector can use the guidance within their roles.
“Ahead of COP16, we’re calling on businesses to get ahead of the curve on nature-related financial disclosures, which will be crucial in alleviating panic and financial pressures further down the line, when this kind of reporting becomes mandatory.”
The guidance paper is now available to IEMA members.
