Interoperability: TNFD and GRI
Interoperability: TNFD and GRI
TNFD (Taskforce on Nature-related Financial Disclosures) and GRI (Global Reporting Initiative) are two reporting frameworks. GRI encompasses a broad range of standards covering various social, environmental, and governance themes, whereas TNFD is specifically focused on nature-related disclosures. But how do these two frameworks interact? Understanding their interoperability can help organisations navigate sustainability reporting more effectively. This blog post explores their key differences, how they complement each other, and how you can use them to strengthen your reporting strategy moving forward.
What is GRI?
GRI is a global standard that helps organisations understand and report their impact on the economy, environment, and society. It consists of:
- Universal standards that outline the requirements and principles for using GRI standards, general disclosures about the reporting organisation, and guidance on managing material topics;
- Sector-specific standards that are tailored to different industries; and
- Topical standards that cover specific material topics, such as GRI 101 on Biodiversity.
What is TNFD?
TNFD focuses specifically on nature-related risks, impacts, opportunities, and dependencies. It has developed a comprehensive set of disclosure recommendations aimed at encouraging businesses to report and act on these factors.
TNFD’s framework aligns with the Kunming-Montreal Global Biodiversity Framework and follows a flexible materiality approach, offering:
- Financial materiality (aligned with ISSB recommendations).
- Impact materiality (aligned with GRI’s approach).
TNFD disclosures are structured around four key pillars:
- Governance – governance structures, processes, and controls for monitoring and managing nature-related issues.
- Strategy – how an organisation integrates nature-related risks and opportunities into its overall business strategy.
- Risk and impact management – identifying, assessing, prioritizing, and monitoring nature-related risks and impacts.
- Metrics and targets – performance indicators related to nature, including targets set by regulations.
The Importance of interoperability between GRI and TNFD
For organisations following both GRI and TNFD guidelines, reporting can become complex and dense. Aligning these frameworks helps reduce redundancy, making reporting more efficient and streamlined.
How GRI and TNFD can work together
Understanding the interoperability between the two standards is crucial for ensuring consistent and aligned reporting. To strengthen this alignment, GRI revised its Biodiversity Standard (GRI 304 → GRI 101, effective July 2024), working closely with TNFD to create a high level of consistency between GRI standards and TNFD recommendations. On the other hand, GRI also provided input for the TNFD recommendations, published in September 2023.
A summary of the key outcomes of these efforts includes:
- Consistent nature-related concepts: Both frameworks align on key definitions, including the five drivers of biodiversity loss from the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES).
- Materiality approach: TNFD incorporates GRI’s impact-focused materiality approach while maintaining flexibility. The TNFD LEAP framework supports reporting on both impact and financial materiality.
- Disclosure alignment: All disclosures from GRI 101: Biodiversity 2024 are included in TNFD, while GRI covers most TNFD disclosures except those specific to nature-related risk and opportunity assessment.
- Metrics consistency: TNFD’s core global disclosure metrics align closely with GRI Standards, and initial mapping shows consistency at the sector level as well.
- LEAP approach in GRI: TNFD’s LEAP framework is referenced in GRI 101, helping organisations identify biodiversity impacts and measure changes in nature.
Ecologically sensitive areas: GRI 101 adopts TNFD definitions and criteria for assessing an organisation's presence in or near sensitive ecosystems.
How to move forward?
To support organisations in navigating the alignment between GRI and TNFD, GRI and TNFD have published:
- A detailed mapping at data point level to show how GRI reporting standards correspond to TNFD disclosures.
- An accompanying document outlining the alignment, focusing on key similarities and differences between the frameworks.
These resources serve as valuable starting points, making it easier to understand and integrate GRI and TNFD reporting requirements.
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