EFRAG and TNFD sign a cooperation agreement

EFRAG and the Taskforce on Nature-related Financial Disclosures (TNFD) have announced the signing of a cooperation agreement, to further advance nature-related reporting.
The ESRS disclosures and the TNFD recommendations are aligned, among others, in the following ways:  
  • Both are organised around the four pillars of the disclosure recommendations of the TCFD.
  • Both the TNFD and ESRS put high emphasis on the need to disclose on nature-related impacts, risks and opportunities (IROs), as well as dependencies from nature to the extent they generate material risks.
  • All 14 recommended disclosures of the TNFD are addressed in the ESRS.
  • The TNFD framework has been designed to accommodate an impact materiality perspective, facilitating alignment with the ESRS.
  • The ESRS state that companies can conduct their materiality assessment on the sustainability matters, pollution, water, biodiversity and ecosystems and circular economy using the LEAP approach phases, which was developed by the TNFD.
As a next step, EFRAG and the TNFD will issue a detailed interoperability mapping illustrating the high level of commonality achieved. The mapping is expected to be published in early 2024.
The press release by EFRAG may be accessed here.