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Coverage of and alignment to the TNFD recommendations is not widespread
Companies were scored on two metrics for this analysis: coverage and alignment. Coverage means that a company provided at least some level of information toward each of the 14 TNFD recommendations, while alignment is the extent to which a company’s disclosures align with the 14 TNFD recommendations. The analysis, which leveraged a scoring methodology to assign each company a rating for coverage and alignment, found that of the companies analyzed, the average score for coverage of the 14 TNFD recommendations was 51% while the average score for alignment toward the 14 TNFD recommendations was 13%. These scores indicate that while companies on average are reporting on nature-related disclosures aligned to over half of the TNFD recommendations, the extent to which they are aligning to the recommendations is limited. These score are likely because nature-related frameworks, such as, the TNFD Framework were releasing their beta recommendations and guidance when companies were drafting their 2022 disclosures.
The TNFD pillar that had the highest coverage and alignment scores was the strategy pillar with slightly higher than average scores at 59% coverage and 15% alignment. Within that pillar, companies had the highest alignment for disclosing the organization’s nature-related dependencies, impacts, risks and opportunities and the effect they have on the company’s business, strategy and financial planning.