Biodiversity reporting is now firmly on the corporate sustainability agenda, with the publication of the final recommendations of the Taskforce on Nature-related Financial Disclosures. The TFND has produced a “risk management and disclosure framework” for corporates and financial institutions that aims to position “nature risk” alongside climate risk and help shift capital flows to “nature-positive” outcomes. The Taskforce’s view is that few companies, investors or lenders currently understand their nature-related dependencies, impacts, risks and opportunities and few are adequately accounting for nature in their strategies and capital allocation decisions.  The recommended disclosures are designed to be consistent with the International Sustainability Standards Board’s IFRS S1 and IFRS S2 standards, covering sustainability-related and climate-related disclosures in global capital markets, which were released in June. The ISSB standards will be adopted in Australia, following incorporation into the Australian Accounting Standards Board’s reporting standards. At this stage, it looks like the TFND recommendations will be a voluntary add-on. Co-chair of the TFND David Craig said in a statement: “Nature loss is accelerating and businesses today are inadequately accounting for nature-related dependencies, impacts, risks and opportunities. Nature risk is sitting in company cash flows and capital portfolios today.” The disclosure framework includes reporting on governance processes and controls; the approach an organisation uses to manage nature-related issues; the processes used to identify risk and impacts; and the metrics and targets used to assess and manage nature-related risks and opportunities. The recommendations are based on the concept of “natural capital”, which is the stock of renewable and non-renewable natural resources, such as plants, animals, air, water, soil and mineral, that combine to yield a flow of benefits to people. The recommendations recognise that many important nature-related issues occur upstream and downstream from an organisation’s direct operations, and the fact that organisations rely on data from supplies and customers. “The organisation should therefore describe the scope of its nature-related assessment and disclosures and the process followed in determining that scope,” it said. The recommendations also recognise that measurement is challenging. During consultation, organisations reported using more than 3000 unique metrics, with different definitions for similar indicators. The TFND will track market adoption and report annually. Macquarie Group is the only Australian TFND member.