TNFD and EFRAG enhancing nature-related disclosures

TNFD and EFRAG publish correspondence mapping, enhancing nature-related disclosures

The Taskforce on Nature-related Financial Disclosures (TNFD) and the European Financial Reporting Advisory Group (EFRAG) recently released a correspondence mapping of the European Sustainability Reporting Standards (ESRS) and TNFD’s recommended disclosures. This mapping highlights the extensive alignment between the two frameworks, with all 14 TNFD recommended disclosures reflected in the ESRS.

This comprehensive mapping aims to assist companies globally in understanding the commonalities between ESRS and TNFD. It offers a detailed comparison of the disclosures and core metrics recommended by TNFD and those required under ESRS, facilitating alignment for European undertakings under the Corporate Sustainability Reporting Directive (CSRD).

The collaboration between EFRAG and TNFD has spanned over two years, striving for consistency in environmental standards. The ESRS, issued as Delegated Act in July 2023, and the TNFD recommendations, released in September 2023, have benefited from this joint effort.

Key aspects of the mapping include the alignment of concepts and definitions, a shared approach to materiality, and the integration of the TNFD’s LEAP approach in the ESRS. Both frameworks also organise their disclosures around the four pillars of the Task Force on Climate-related Financial Disclosures (TCFD): Governance, Strategy, Risk Management, and Metrics and Targets.

For more detailed insights, access the TNFD-ESRS correspondence mapping here.

Source: XBRL News June 28, 2024