TNFD and EFRAG publish correspondence mapping
TNFD and EFRAG publish correspondence mapping
The Taskforce on Nature-related Financial Disclosures (TNFD) and EFRAG have jointly published a mapping of the correspondence between the European Sustainability Reporting Standards (ESRS) and the TNFD's recommended disclosures and metrics.
The high level of correspondence between the ESRS environmental standards beyond climate change (E2-E5) and the TNFD recommendations a3nd core metrics is reflected, among others, through the following:
The high level of correspondence between the ESRS environmental standards beyond climate change (E2-E5) and the TNFD recommendations a3nd core metrics is reflected, among others, through the following:
- Concepts and definitions: Both the TNFD and ESRS recommend the need to disclose nature-related impacts, risks and opportunities.
- Approach to materiality: The ESRS require disclosures to be based on a double materiality principle. The TNFD approach enables different approaches to materiality, including the double materiality approach required by the ESRS.
- The LEAP approach: The TNFD developed the LEAP approach for market participants to identify and assess their nature-related issues. The ESRS state that companies may conduct their materiality assessment on the sustainability matters of pollution, water, biodiversity and ecosystems, and circular economy (all ESRS environmental standards beyond climate change) using the LEAP approach.
- Reporting pillars: Both the TNFD recommended disclosures and the ESRS reporting areas are organised around the four disclosure pillars of the Task Force on Climate-related Financial Disclosures (TCFD): Governance, Strategy, Risk Management, and Metrics and Targets.
- Recommended disclosures and metrics: All 14 disclosures recommended by the TNFD are reflected in the ESRS.