Carbon Projects and Markets
Making sense of TCFD and TNFD
Making sense of TCFD and TNFD
Climate reporting is now mandatory under the Taskforce on Climate-Related Financial Disclosures (TCFD), and a framework for nature has recently followed - the Taskforce on Nature-Related Financial Disclosures (TNFD). Now is the time for companies to get serious about how their annual reporting requirements are evolving.
Climate reporting is now mandatory under the Taskforce on Climate-Related Financial Disclosures (TCFD), and a framework for nature has recently followed - the Taskforce on Nature-Related Financial Disclosures (TNFD). Now is the time for companies to get serious about how their annual reporting requirements are evolving.
Climate reporting is now mandatory under the Taskforce on Climate-Related Financial Disclosures (TCFD), and a framework for nature has recently followed - the Taskforce on Nature-Related Financial Disclosures (TNFD). Now is the time for companies to get serious about how their annual reporting requirements are evolving.
Oversight of the TCFD has passed to the ISSB, and it forms the basis of sustainability reporting requirements in the 2024 reporting cycle, as defined by ISSB S1 and S2. That milestone took six years from the initial TCFD recommendations in 2017 - but a much faster uptake is expected for the TNFD.
How do they differ?
The TCFD and TNFD are reporting frameworks for climate and nature respectively. Take a dairy operation as an example.
The TCFD is interested primarily in the methane released to produce a litre of milk.
Did the farmer introduce a feed additive that cut methane emissions?
Did they capture the methane coming off their effluent and use it as a biofuel to power their tractor?
The TNFD is more concerned with how that farm affected nature.
Did the farmer clear a patch of native grass to plant a fodder crop - nature negative?
Or did they fence off a watercourse and provide habitat for threatened species - nature positive?
How to get started
Both frameworks run to hundreds of pages, which can look daunting. But they're designed to let you start simply: set a target, use real data to understand where you are now, and begin making progress you can measure.
Over time, you don't just meet the regulations - you gain deeper insight into your supply chain.
Make a start
Familiarise yourself with the frameworks and their key concepts.
Get senior buy-in
Use data to present the risks and opportunities across climate and nature.
Set a goal
This might be as simple as working through a LEAP assessment for one commodity in one region - beef in Australia, say, or wheat in the UK.
Track progress
Use data to find where you can have the biggest impact for the least effort.
Climate reporting is now mandatory under the Taskforce on Climate-Related Financial Disclosures (TCFD), and a framework for nature has recently followed - the Taskforce on Nature-Related Financial Disclosures (TNFD). Now is the time for companies to get serious about how their annual reporting requirements are evolving.
Oversight of the TCFD has passed to the ISSB, and it forms the basis of sustainability reporting requirements in the 2024 reporting cycle, as defined by ISSB S1 and S2. That milestone took six years from the initial TCFD recommendations in 2017 - but a much faster uptake is expected for the TNFD.
How do they differ?
The TCFD and TNFD are reporting frameworks for climate and nature respectively. Take a dairy operation as an example.
The TCFD is interested primarily in the methane released to produce a litre of milk.
Did the farmer introduce a feed additive that cut methane emissions?
Did they capture the methane coming off their effluent and use it as a biofuel to power their tractor?
The TNFD is more concerned with how that farm affected nature.
Did the farmer clear a patch of native grass to plant a fodder crop - nature negative?
Or did they fence off a watercourse and provide habitat for threatened species - nature positive?
How to get started
Both frameworks run to hundreds of pages, which can look daunting. But they're designed to let you start simply: set a target, use real data to understand where you are now, and begin making progress you can measure.
Over time, you don't just meet the regulations - you gain deeper insight into your supply chain.
Make a start
Familiarise yourself with the frameworks and their key concepts.
Get senior buy-in
Use data to present the risks and opportunities across climate and nature.
Set a goal
This might be as simple as working through a LEAP assessment for one commodity in one region - beef in Australia, say, or wheat in the UK.
Track progress
Use data to find where you can have the biggest impact for the least effort.