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๐๐š๐ญ๐ฎ๐ซ๐žย ๐ข๐ฌ ๐ญ๐ก๐ž ๐ง๐ž๐ฐ ๐‚๐ฅ๐ข๐ฆ๐š๐ญ๐ž. ๐€๐ซ๐ž ๐ฒ๐จ๐ฎ ๐ซ๐ž๐š๐๐ฒ ๐Ÿ๐จ๐ซ TNFD?

  • Cยฒ Team
  • Dec 3
  • 2 min read

Weโ€™ve all heard of carbon footprints and Net Zero. But what about our Nature Footprint?

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Enter the ๐“๐๐…๐ƒ Taskforce on Nature-related Financial Disclosures (TNFD)

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Here is the simple breakdown of what it means, the "๐‹๐„๐€๐" approach everyone is talking about, and why Indian investors are watching closely.

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1๏ธโƒฃย ๐‘พ๐’‰๐’‚๐’• ๐’Š๐’” ๐‘ป๐‘ต๐‘ญ๐‘ซ ๐’”๐’Š๐’Ž๐’‘๐’๐’š? 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 โ€ข ๐‹๐จ๐œ๐š๐ญ๐ž: Where do we operate?

ย โ€ข ๐„๐ฏ๐š๐ฅ๐ฎ๐š๐ญ๐ž: What are our dependencies on nature there?

ย โ€ข ๐€๐ฌ๐ฌ๐ž๐ฌ๐ฌ: What are the risks?

ย โ€ข ๐๐ซ๐ž๐ฉ๐š๐ซ๐ž: What is our strategy to handle them?

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2๏ธโƒฃย Is it mandatory in India? Not explicitly yet, but effectively YES for big players via SEBI's BRSR Core.

ย โ€ข ๐†๐ฅ๐จ๐›๐š๐ฅ ๐‚๐จ๐ง๐ญ๐ž๐ฑ๐ญ: Companies worldwide are submitting their first reports right now (FY24/25).

ย โ€ข ๐ˆ๐ง๐๐ข๐š ๐“๐ข๐ฆ๐ž๐ฅ๐ข๐ง๐ž: 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 โ€ข This gives companies about a year or two to get their data in order, but the clock is ticking.

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3๏ธโƒฃย ๐‘พ๐’‰๐’ย ๐’Š๐’” ๐’‚๐’๐’“๐’†๐’‚๐’…๐’š ๐’…๐’๐’Š๐’๐’ˆ ๐’Š๐’•? Indian giants are not waiting for the mandate; they are adopting it to stay competitive.

ย โ€ข Tata Steel: Released their inaugural TNFD report for 2025.

ย โ€ข JSW Steel: Committed to the TNFD protocols using the LEAP framework.

ย โ€ข Adani Ports and SEZ & Ambuja Cements Limited: Committed to nature-related disclosures starting FY26.

ย โ€ข Tech Mahindra: Recently joined the TNFD Adopter Programme.

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4๏ธโƒฃย ๐‘พ๐’‰๐’šย ๐’Š๐’” ๐’•๐’‰๐’Š๐’” ๐’Š๐’Ž๐’‘๐’‚๐’„๐’•๐’‡๐’–๐’? 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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๐‘พ๐’‰๐’šย ๐’…๐’ ๐’Š๐’๐’—๐’†๐’”๐’•๐’๐’“๐’” ๐’๐’๐’—๐’† ๐’•๐’‰๐’Š๐’”? 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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๐‘ป๐’‰๐’†ย ๐‘ฉ๐’๐’•๐’•๐’๐’Ž ๐‘ณ๐’Š๐’๐’†: Nature loss is no longer just an environmental issue; itโ€™s 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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๐‘น๐’†๐’‚๐’…๐’šย ๐’•๐’ ๐’Ž๐’‚๐’Œ๐’† ๐’š๐’๐’–๐’“ ๐’ƒ๐’–๐’”๐’Š๐’๐’†๐’”๐’” ๐’๐’‚๐’•๐’–๐’“๐’†-๐’‘๐’๐’”๐’Š๐’•๐’Š๐’—๐’† ๐’‚๐’๐’… ๐’‡๐’–๐’•๐’–๐’“๐’†-๐’“๐’†๐’‚๐’…๐’š?

๐Ÿ‘‰ย ๐‚๐จ๐ง๐ง๐ž๐œ๐ญ ๐ฐ๐ข๐ญ๐ก Cยฒ (Csquare) ๐ญ๐จย ๐ ๐ž๐ญย ๐ฌ๐ญ๐š๐ซ๐ญ๐ž๐!

๐ŸŒย ๐œ๐ฌ๐ช๐ฎ๐š๐ซ๐ž๐œ๐š๐ซ๐›๐จ๐ง.๐œ๐จ๐ฆ

โœ‰๏ธย ๐ข๐ง๐Ÿ๐จ@๐œ๐ฌ๐ช๐ฎ๐š๐ซ๐ž.๐œ๐จ.๐ข๐ง


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