Is TNFD an answer to the biodiversity crisis? – The Understory – Rainforest Action Network

Humanity’s Biodiversity Crisis Threatens Sustainable Development Goals

Humanity is currently facing a biodiversity crisis that poses a significant threat to the foundations of organized human society. Approximately three-quarters of the Earth’s land is now degraded, and it is estimated that one million species are on the brink of extinction.

This loss of biodiversity has irreversible consequences, as once a species goes extinct, it cannot be recovered. This loss also jeopardizes the resilience of global ecosystems, which over half of the global economy relies on. The destruction of ecosystems through profit-driven activities such as overfishing, deforestation, and industrial monoculture is decimating essential sectors like food, shelter, and transportation, which contribute an estimated $44 trillion to global GDP.

The Taskforce on Nature-related Financial Disclosures (TNFD)

The Taskforce on Nature-related Financial Disclosures (TNFD) has emerged as a proposed solution to the biodiversity crisis. Similar to the Taskforce on Climate-related Financial Disclosures (TCFD), TNFD is a corporate disclosure scheme that aims to address the cost of biodiversity loss in business operations. The idea is that corporations with higher financial risk from biodiversity loss or those that have a more negative impact on biodiversity will face rising costs due to decreased investor confidence and increased public or regulatory scrutiny.

Regulatory bodies in countries like the US, UK, France, Canada, and other major Western nations have already proposed or adopted mandatory climate disclosure rules aligned with TCFD. With the backing of the United Nations, TNFD is poised to become the gold standard for biodiversity disclosures.

Concerns with TNFD

Despite its association with the UN, TNFD is entirely driven by the private sector and reflects the interests of the corporations it aims to regulate. The task force consists of senior staff from multinational corporations, including major fossil fuel financiers and investors in deforestation. This lack of diversity and inclusion is evident in TNFD’s fatal flaws:

• Communities cut out of the analysis: TNFD’s location reports are vague, making it difficult to trace impacts back to specific communities.
• Grievances left unreported: Conflicts between corporations and communities over nature-related impacts, such as deforestation, are not included in the reports.
• Subjective risk assessments: Only risks deemed “material” to a corporation’s financial health are considered, allowing corporations to downplay their biodiversity-related impacts.
• Data incoherence: Non-standardized methodologies make independent data verification challenging, resulting in broadly incoherent data.

TNFD not only fails to adequately measure nature-related risks but also provides opportunities for corporations to obscure their biodiversity-related impacts while avoiding accountability to frontline communities. Instead of addressing the crisis, TNFD promotes greenwashing, benefiting corporations while sidelining frontline communities in the pursuit of real solutions.

Real Solutions Must Center Justice

Any meaningful solution to the biodiversity crisis must prioritize justice. Currently, TNFD is a voluntary reporting scheme, meaning that reported or unreported impacts on biodiversity carry no consequences. Even if TNFD were to become mandatory in some jurisdictions, it does not challenge corporations’ right to retain 100% of the profits made from environmental harms. By excluding frontline communities from its analysis, TNFD closes off avenues for justice where harm to nature also harms communities.

Rainforest Action Network has been monitoring the biodiversity and human rights records of major corporations for years. Visit their website for more information about the brands and banks driving biodiversity loss and for additional information about TNFD.

SDGs, Targets, and Indicators in the Article

1. SDGs Addressed or Connected to the Issues Highlighted in the Article

• SDG 15: Life on Land – The article discusses the biodiversity crisis and the threat it poses to ecosystems and species.
• SDG 12: Responsible Consumption and Production – The article mentions profit-driven overfishing, deforestation, and industrial monoculture as activities that contribute to biodiversity loss.

2. Specific Targets Under Those SDGs Based on the Article’s Content

• SDG 15.5: Take urgent and significant action to reduce the degradation of natural habitats, halt the loss of biodiversity, and protect and prevent the extinction of threatened species.
• SDG 12.2: By 2030, achieve the sustainable management and efficient use of natural resources.

3. Indicators Mentioned or Implied in the Article to Measure Progress towards the Identified Targets

• Indicator for SDG 15.5: Proportion of important sites for terrestrial and freshwater biodiversity that are covered by protected areas.
• Indicator for SDG 12.2: Domestic material consumption per capita, showing the efficiency of resource use.

The article highlights the need to take urgent action to reduce the degradation of natural habitats and halt the loss of biodiversity (SDG 15.5). The indicator mentioned in the article that can measure progress towards this target is the proportion of important sites for terrestrial and freshwater biodiversity that are covered by protected areas. By increasing the coverage of protected areas, we can better protect and prevent the extinction of threatened species.

The article also mentions profit-driven activities such as overfishing, deforestation, and industrial monoculture that contribute to biodiversity loss. Achieving sustainable management and efficient use of natural resources (SDG 12.2) is crucial in addressing these issues. The indicator mentioned in the article that can measure progress towards this target is domestic material consumption per capita, which reflects the efficiency of resource use. By reducing material consumption and promoting sustainable practices, we can minimize the negative impacts on biodiversity.

Table: SDGs, Targets, and Indicators

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Source: ran.org

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