๐๐๐ญ๐ฎ๐ซ๐ย ๐ข๐ฌ ๐ญ๐ก๐ ๐ง๐๐ฐ ๐๐ฅ๐ข๐ฆ๐๐ญ๐. ๐๐ซ๐ ๐ฒ๐จ๐ฎ ๐ซ๐๐๐๐ฒ ๐๐จ๐ซ TNFD?
- Cยฒ Team
- Dec 3
- 2 min read
Weโve all heard of carbon footprints and Net Zero. But what about our Nature Footprint?
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Enter the ๐๐๐ ๐ Taskforce on Nature-related Financial Disclosures (TNFD)
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Here is the simple breakdown of what it means, the "๐๐๐๐" approach everyone is talking about, and why Indian investors are watching closely.
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1๏ธโฃย ๐พ๐๐๐ ๐๐ ๐ป๐ต๐ญ๐ซ ๐๐๐๐๐๐? Think of it as a "Risk Assessment for Nature." Just like companies report financial profits and losses, TNFD asks them to report how they depend on nature (e.g., needing water for cooling towers) and how they impact nature.
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To do this, companies follow the LEAP Approach:
ย โข ๐๐จ๐๐๐ญ๐: Where do we operate?
ย โข ๐๐ฏ๐๐ฅ๐ฎ๐๐ญ๐: What are our dependencies on nature there?
ย โข ๐๐ฌ๐ฌ๐๐ฌ๐ฌ: What are the risks?
ย โข ๐๐ซ๐๐ฉ๐๐ซ๐: What is our strategy to handle them?
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2๏ธโฃย Is it mandatory in India? Not explicitly yet, but effectively YES for big players via SEBI's BRSR Core.
ย โข ๐๐ฅ๐จ๐๐๐ฅ ๐๐จ๐ง๐ญ๐๐ฑ๐ญ: Companies worldwide are submitting their first reports right now (FY24/25).
ย โข ๐๐ง๐๐ข๐ ๐๐ข๐ฆ๐๐ฅ๐ข๐ง๐: While currently voluntary, strict "mandatory" assurance for the value chain is set to kick in for the top 250 listed companies in FY 2026-27.
ย โข This gives companies about a year or two to get their data in order, but the clock is ticking.
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3๏ธโฃย ๐พ๐๐ย ๐๐ ๐๐๐๐๐๐ ๐ ๐ ๐๐๐๐ ๐๐? Indian giants are not waiting for the mandate; they are adopting it to stay competitive.
ย โข Tata Steel: Released their inaugural TNFD report for 2025.
ย โข JSW Steel: Committed to the TNFD protocols using the LEAP framework.
ย โข Adani Ports and SEZ & Ambuja Cements Limited: Committed to nature-related disclosures starting FY26.
ย โข Tech Mahindra: Recently joined the TNFD Adopter Programme.
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4๏ธโฃย ๐พ๐๐ย ๐๐ ๐๐๐๐ ๐๐๐๐๐๐๐๐๐? It changes the definition of "liability." Previously, if a company used groundwater or degraded soil, it was often "free." TNFD forces companies to treat Nature as a balance sheet item.
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๐พ๐๐ย ๐ ๐ ๐๐๐๐๐๐๐๐๐ ๐๐๐๐ ๐๐๐๐? It tells them if a company is "future-proof." If a business relies on a forest that is fast disappearing, that company is a bad investment. TNFD highlights that hidden risk before it becomes a financial loss.
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๐ป๐๐ย ๐ฉ๐๐๐๐๐ ๐ณ๐๐๐: Nature loss is no longer just an environmental issue; itโs a financial risk. Companies that start "LEAP-ing" now will lead the market. Those who ignore it risk being left behind.
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๐น๐๐๐ ๐ย ๐๐ ๐๐๐๐ ๐๐๐๐ ๐๐๐๐๐๐๐๐ ๐๐๐๐๐๐-๐๐๐๐๐๐๐๐ ๐๐๐ ๐๐๐๐๐๐-๐๐๐๐ ๐?
๐ย ๐๐จ๐ง๐ง๐๐๐ญ ๐ฐ๐ข๐ญ๐ก Cยฒ (Csquare) ๐ญ๐จย ๐ ๐๐ญย ๐ฌ๐ญ๐๐ซ๐ญ๐๐!
๐ย ๐๐ฌ๐ช๐ฎ๐๐ซ๐๐๐๐ซ๐๐จ๐ง.๐๐จ๐ฆ
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