November 25, 2025
TNFD recently sent a letter to EFRAG Chair – Mr Patrick de Cambourg – outlining its recommendations on simplification. The recommendations aim to provide a more coherent, conceptually consistent and science-based approach. It aims to significantly reduce reporting burden and improve interoperability with global reporting standards.
Main points:
- Integrate environmental standards expect climate change (E2 to E5) into one consolidated “E2” (Nature standard). This is in addition to the other “levers” considered by EFRAG
- The integrated “nature” standard will cover four out of the five drivers – land, ocean, freshwater and atmosphere (climate change being the fifth, already covered in E1). This aligns with best available science from the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES)
- Recommend to adopt a structured materiality assessment approach for nature-related issues, following the LEAP approach.
- Recommend explicit refer to assessment and disclosure of ‘dependencies’ on nature, DIROs, not only IROs.
- Recommend to align quantitative nature-related data points with TNFD cross-sector indicators specific to each driver of change.