The Taskforce on Nature-related Financial Disclosures (TNFD) has unveiled eight key recommendations aimed at enhancing the value chain of nature data for market participants.
This guidance outlines how financial institutions can tackle challenges associated with nature data. It also details the initiation of the proposed Nature Data Public Facility (NDPF) in 2023.
Recommendations:
- Establish Nature Data Principles: Introduce foundational principles to enhance the quality of state-of-nature data over time.
- Develop Metadata Standards: Propose standard metadata for state-of-nature data.
- Harmonize Licensing and Agreements: Create consistency in licensing and usage agreements for accessing state-of-nature data.
- Launch the NDPF: Establish the NDPF to facilitate access to state-of-nature data.
- Incentivize Accurate Data Provision: Encourage companies to provide precise state-of-nature data on a proprietary basis through the NDPF.
- Form the Nature Data Trust: Establish an international institution to fund, collect, and aggregate state-of-nature data.
- Create Measurement Protocols: Develop a protocol for measuring state-of-nature data to guide market participants in measurement methodologies and standards.
- Universal Data Sharing Protocol: Propose a universal protocol for data collection and sharing to improve the visibility of nature-related impacts across value chains.
David Craig, Co-Chair of the TNFD, remarked, “The nature data value chain is at a crucial turning point. While the demand for high-quality nature data is surging, trust in the accuracy of state-of-nature data remains a pressing concern. Upstream data collectors require more funding to support their essential work. State-of-nature data is a globally significant public good that needs effective mechanisms for improvement in quality and timeliness.”
Tasso Azevedo, General Coordinator of MapBiomas in Brazil, added, “Driving effective actions against global climate change and reversing nature loss requires mobilizing the private sector. High-quality data is essential for effective risk management and capital allocation decisions. These recommendations lay the groundwork for a scalable approach across the entire value chain, enhancing our understanding of the world’s state-of-nature data.”
For complete details, please refer to the full recommendations here.