Understanding the State of Nature-Related Data: Insights from the Taskforce on Nature-related Financial Disclosures (TNFD)
The Taskforce on Nature-related Financial Disclosures (TNFD) has shed light on the current state of nature-related data available to market participants, revealing that the perception of a “data desert” may be misguided. While data availability and quality are often cited as barriers to engaging with nature-related assessment and reporting, the TNFD’s experience shows that companies and financial institutions are indeed able to generate valuable insights using the data available today.
One key finding from the TNFD’s pilot testing is that the most pressing data gaps are often internal to organizations, such as understanding the location of direct operations and supply chain interactions with nature. This underscores the importance of having accurate asset location data to assess dependencies on nature and identify risks to the organization.
External data on ecosystems and nature conditions at relevant locations is also crucial for companies to determine material issues and make informed decisions. However, simply having access to vast amounts of data is not enough; organizations must also develop the capacity to analyze and translate data into actionable insights.
To address these challenges, the TNFD and partner organizations are working to improve accessibility to decision-grade nature-related data. Efforts include blueprinting a global Nature Data Public Facility (NDPF) and exploring the feasibility of a value chain “data passport” for core nature impact indicators.
As the demand for nature-related data continues to grow, businesses that have built nature intelligence will not only be more resilient in the face of climate change and nature loss but also better positioned to leverage this intelligence as a source of competitive advantage. By investing in data analysis capabilities and embracing nature-related reporting requirements, companies can make meaningful decisions that shape better corporate strategy, governance, risk management, and capital allocation.