GRI and TNFD Simplify Biodiversity Reporting

The Global Reporting Initiative (GRI) and the Taskforce on Nature-related Financial Disclosures (TNFD) have published a joint project on the alignment of their standards to assist companies in enhancing their environmental reporting. This document highlights the alignment between the standards and recommendations of both organisations, simplifying the integration of their requirements.

Over the past two years, GRI and TNFD have actively exchanged expertise:

In response to business requests, the organisations have released a guidance document and a mapping table. These tools will help more than 14,000 organisations using the GRI standards to align with the TNFD Recommendations, and those adopting TNFD to harmonise their reports with GRI.

Key Mapping Outcomes:

  1. Unified Concepts and Definitions
    Consistent approaches to biodiversity are used, including the five drivers of natural resource and biodiversity loss as defined by IPBES (Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services).
  2. Compatibility of Materiality Concepts
    The inclusion of TNFD's flexible materiality assessment approach (LEAP), which covers both impact and financial materiality.
  3. Full Mutual Alignment
    All disclosures in GRI 101 are reflected in TNFD, except those concerning the assessment of risks and opportunities.
  4. Consistency of Metrics
    A comparison of TNFD industry metrics with GRI's industry standards revealed a high degree of alignment.

Key Insights: Harmonising TNFD and GRI Frameworks

  • Mandatory Disclosure for Biodiversity Management
    Organisations using GRI Standards must report their approach to managing biodiversity as a material topic under Disclosure 3-3 and supplement it with Disclosures 101-1 to 101-3 where applicable;
  • Alignment with Global Biodiversity Framework
    Policies to halt and reverse biodiversity loss should align with the Kunming-Montreal Global Biodiversity Framework, focusing on the 2050 Goals and 2030 Targets;
  • Detailed Biodiversity Management Actions
    Disclosure 101-2 requires organisations to describe:
    • Actions taken to avoid, minimize, restore, or offset biodiversity impacts.
    • Site-specific restoration activities, including hectares under restoration and measurable progress.
    • Collaboration with stakeholders and synergies between biodiversity and climate efforts.
  • Mitigation Hierarchy Application
    Organisations must prioritize avoiding negative impacts, followed by minimization, restoration, and offsets, incorporating transformative actions for systemic change.
  • Traceability and Stakeholder Engagement
    Clear mechanisms to trace product origins, work with suppliers, and engage communities are expected to ensure sustainable biodiversity practices.
  • Commitment to Net Gain Goals
    Organisations are encouraged to report on goals such as "no net loss" or "net gain" in biodiversity, supported by scientific benchmarks and international best practices.

Conclusions

The synergy between GRI and TNFD makes environmental reporting simpler and more effective by eliminating duplication of metrics and enhancing transparency. This tool will enable businesses to better manage biodiversity impacts and disclose nature-related risks in accordance with global standards.