The TCFD (Task Force on Climate-related Financial Disclosures) is a framework that helps companies report how climate change affects their business 🌡️. It focuses on physical risks (storms, droughts) and transition risks (regulations, carbon pricing) that may have financial impact.

What is TNFD?

The TNFD (Task Force on Nature-related Financial Disclosures) applies the same approach but related to nature and biodiversity 🌳. It considers the company’s impacts and dependencies on natural resources (water, soil, pollinators, etc.) and the risks posed by their degradation.

Structure of both frameworks

Both are based on four pillars:

1. Governance

   Describes how the company manages these topics from the board and management level.

2. Strategy

   Explains how climate/nature-related risks and opportunities affect business planning.

3. Risk Management

   Presents the internal process to identify, assess, and mitigate these risks.

4. Metrics and Targets

   Indicates which indicators are used to measure progress and set clear goals 📊.

What’s the difference between TCFD and TNFD?

• TCFD focuses on climate and greenhouse gas emissions
• TNFD covers ecosystems, water, biodiversity, and natural capital

Both are complementary and compatible, and aligned with the new CSRD directive. Integrating them allows companies to anticipate future regulations and improve their resilience 🌱.