The TNFD and the EFRAG have unveiled a comprehensive correspondence mapping between the ESRS and TNFD’s disclosures and metrics.
This alignment underscores the synergy in reporting standards that will facilitate corporate compliance with the Corporate Sustainability Reporting Directive (CSRD) and enhance nature-related transparency across Europe.
The joint effort, which began over two years ago, aimed to ensure that both sets of standards—developed in parallel—complement each other. As a result, all 14 of TNFD’s recommended disclosures are now mirrored in the ESRS, demonstrating a unified approach to sustainability reporting. This alignment not only aids European companies covered by CSRD in adhering to regulatory requirements but also supports a global audience looking to align with TNFD’s frameworks.
The collaboration between EFRAG and TNFD, formalised through a Memorandum of Understanding signed in December 2023, is set to continue as both entities work to meet the evolving needs of market participants. The mapping incorporates various sustainability dimensions from both frameworks, emphasising the need to disclose nature-related impacts, risks, and opportunities, including dependencies on nature that generate material risks.
The TNFD has also introduced the LEAP approach, a methodology that allows companies to evaluate and assess nature-related issues. This approach is recognised and recommended by the ESRS for companies conducting their materiality assessments on sustainability matters such as pollution, water, biodiversity, ecosystems, and the circular economy.
Furthermore, both the TNFD and ESRS recommend disclosures based on the double materiality principle, which considers both the financial impact of sustainability issues on the organisation and the impact of the organisation on sustainability issues.
EFRAG and TNFD’s commitment to enhancing nature-related disclosures is evident in their ongoing work to develop additional guidance and tools that will assist companies in producing high-quality, consistent reports.
TNFD Executive Director Tony Goldner emphasised the practical benefits of the newly released mapping, “As market participants from over 45 countries have started to assess and report on their nature-related issues aligned with our recommendations, many have asked us for further guidance to ensure their reporting complies with their mandatory CSRD requirements. The assessment released today provides that additional clarity to market participants.”
Patrick de Cambourg, Chair of the EFRAG Sustainability Reporting Board (EFRAG SRB), also reflected on the collaboration’s achievements, “Today’s release of the correspondence mapping between the ESRS and the TNFD recommendations marks a significant milestone in advancing nature-related transparency in corporate reporting. The high level of commonality achieved between the ESRS and TNFD’s disclosures underscores our shared commitment to fostering sustainable development and providing robust data for stakeholders.”
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