Taskforce on Nature-related Financial Disclosures (TNFD) beta framework

Why biodiversity and natural capital matter to business, and what you need to know about the TNFD beta framework

Net zero and nature are intrinsically linked. Climate change and declining biodiversity and natural capital are twin existential threats to life on this planet, and both are at tipping points. 

Meaningful action towards a net-zero and nature-positive future has never been more urgent. 

While climate action is increasingly discussed and reported as part of business ESG strategy and performance, less systematic attention has yet been placed on articulating and disclosing biodiversity and natural capital dependencies, risks, opportunities, aspirations and performance. 

There’s a real business opportunity in tackling biodiversity. Businesses that take effective action to prevent detrimental impacts on nature, and that leave net benefits for biodiversity and natural capital, will also increasingly protect and enhance their social licence and reputation, availability of financing, regulatory arrangements, supply chains, and business performance. By understanding nature-related dependencies, and taking action towards a more sustainable and resilient business model, companies can maximise their success on a deteriorating and ever-changing planet.

The TNFD provides a clear, structured framework that can help businesses understand the implications of biodiversity and natural capital for their organisation and activities. It helps companies navigate towards maximising their impact and enterprise value. The framework brings consideration of nature-related dependencies, risks and opportunities into core corporate strategy, decision-making and reporting, helping prioritise and accelerate the flow of capital into nature-positive outcomes.

This article provides readers with an understanding of why biodiversity is so important, what companies can be doing to safeguard and harness the opportunities biodiversity presents, and what ESG reporting changes like the TNFD mean going forward.

Contact us

Linda Romanovska

Linda Romanovska

ESG Climate Change, Policy & Sustainable Finance expert, PwC Australia

John Tomac

John Tomac

Partner, PwC Australia

Tel: +61 282 661 330

Katelyn Bonato

Katelyn Bonato

Partner, Energy Transition, PwC Australia

Tel: +61 402 941 913