TNFD releases guide on integrating nature in climate transition plans

The Taskforce on Nature-related Financial Disclosures (TNFD) has released guidance to help companies integrate nature in their climate transition plans.

The guide published today (November 4) builds on best practices around climate transition plans, including the frameworks proposed by the Glasgow Financial Alliance for Net Zero (GFANZ) and Transition Plan Taskforce (TPT), to break down the process of aligning climate and nature goals in transition planning.

It lays out how to translate the targets of the Global Biodiversity Framework (GBF) into a coherent set of strategies, actions and accountability mechanisms built into the company’s main business strategy.

Key areas of focus include a description of what transition plans are and what incorporating nature into them means, how an organisation can incorporate nature into its transition plan and disclose information about nature transition plans, as well as areas of future work around integrating nature in transition plans.

Aligning corporate action with the Global Biodiversity Framework

The guide helps companies align with global policy goals – specifically the four goals and 23 targets of the Global Biodiversity Framework (GBF) to halt and reverse biodiversity loss by 2030 – and embed nature protection and recovery within their climate work in a structured way.

“Investors are increasingly seeking information about such plans to understand how their portfolio organisations and clients intend to manage the risks and resilience issues associated with climate change. The same is now true for nature-related issues beyond climate change. This guidance explores how transition plans for nature-related issues, including but beyond climate change, can help organisations communicate how they plan to respond and contribute to the transition implied not only by the Paris Agreement but also by the GBF,” TNFD said upon announcing the new guidance.

Guidance tested by companies

In a post announcing the publication, Thomas Hegarty, TNFD Transition Planning and Targets Lead, said the guidance uses the same structure as established for net-zero transition plans, to help firms integrate nature actions with existing climate plans.

He added that the guidance has been tested with 15 companies and financial institutions from around the world.

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