GRI and TNFD Partner to Enhance Global Biodiversity Reporting Standards

The Global Reporting Initiative (GRI) and the Taskforce on Nature-related Financial Disclosures (TNFD) have teamed up to streamline biodiversity reporting for organizations. They have developed a joint interoperability mapping resource that aligns the TNFD Disclosure Recommendations with the GRI Standards, making the reporting process more efficient and comprehensive for businesses worldwide.

Collaborative Efforts and Goals

Over the past two years, GRI and TNFD have worked closely to support each other’s guidance. This collaboration includes GRI's input into the TNFD Recommendations released in September 2023 and TNFD’s contributions to the newly published GRI Biodiversity Standard. The result is a cohesive and integrated approach to sustainability reporting that benefits organizations and enhances the quality of disclosed data.

The main goals of this collaboration are to:

• Use Consistent Definitions: Both frameworks utilize consistent nature-related concepts and definitions, such as the five direct drivers of biodiversity loss defined by the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES). This consistency helps organizations report on biodiversity in a standardized manner.
• Incorporate Materiality Approaches: The TNFD's flexible materiality approach, including the LEAP method, aligns closely with GRI's focus on impact materiality. This dual approach ensures that organizations can comprehensively assess and disclose their nature-related impacts and risks.
• Align Core Metrics: Aligning core global disclosure metrics between TNFD and GRI Standards ensures consistency and reduces the need for double reporting. The initial mapping of TNFD sector metrics against relevant GRI Sector Standards also shows a high level of alignment. This coherence ensures that organizations report on sector-specific nature-related issues confidently and clearly.

Addressing Market Needs

GRI and TNFD have developed a guidance document and correspondence table to respond to feedback from market participants. This resource helps GRI’s 14,000 global reporters align with TNFD Recommendations and assists TNFD Adopters in their sustainability reporting according to GRI Standards. By providing clear pathways and practical tools, this resource addresses the complexities of biodiversity reporting and simplifies the process for organizations.

Practical Benefits for Organizations

The TNFD LEAP approach, included in GRI 101, helps organizations identify and assess nature-related issues. It highlights areas where biodiversity impacts are significant and guides measuring changes in nature’s state. Additionally, GRI 101 uses TNFD definitions and criteria to consider an organization’s proximity to ecologically sensitive areas. This practical guidance helps organizations make informed decisions about their nature-related dependencies and impacts.

Key Drivers of Biodiversity Loss

Understanding the key drivers of biodiversity loss is crucial for effective reporting and action. According to the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES), the five main drivers are:

• Habitat Loss: Activities such as deforestation, urbanization, and land conversion for agriculture destroy natural habitats.
• Invasive Species: Non-native species introduced to new environments can outcompete, prey on, or bring diseases to native species.
• Overexploitation: Excessive hunting, fishing, and harvesting of species lead to population declines and extinctions.
• Pollution: Contaminants like plastics, chemicals, and waste products harm ecosystems and species.
• Climate Change: Global warming and changing weather patterns disrupt habitats and species’ survival.

Expert Perspectives

Bastian Buck, GRI’s Chief Standards Officer, emphasized the importance of this collaboration, stating, “This collaboration with TNFD supports thousands of organizations worldwide in reporting their biodiversity impacts using GRI Standards, integrating TNFD recommendations for simplified reporting.”

Esther An, Chief Sustainability Officer of City Developments Limited (CDL), highlighted CDL’s experience, “Nature risks are business risks that should be measured and disclosed in a more robust manner. As the first Singapore company to publish disclosures aligned with TNFD Recommendations, we welcome the interoperability between TNFD and GRI to harmonize global sustainability reporting.”

Tony Goldner, Executive Director of the TNFD, noted, “This mapping resource from GRI and TNFD supports market participants in reporting their nature-related dependencies and impacts using GRI Standards and TNFD Recommendations. We look forward to continuing our work with GRI to provide clear, practical support to market participants.”

This comprehensive alignment effort by GRI and TNFD simplifies the reporting process and enhances the quality and consistency of sustainability data.