Nature refers to the natural world, emphasising the diversity of living organisms, including people, and their interactions with each other and their environment.Nature is made up of four realms: Freshwater, Oceans, Land and Atmosphere which provide ecosystem services that our economies and societies depend on.
Nature-related dependencies, impacts, risks and opportunities (DIROs) provide an entry point for businesses to understand their interface with nature and how it affects their business operations. Full definitions can be found here.
Materiality is an accounting principle that helps determine whether information around risks and opportunities is important. The ISSB defines information to be material is omitting, obsurring or misstating it could be reasonable expected to influence investor decisions.
The Taskforce on Nature-related Financial Disclosures (TNFD) is a market-led and science based initiative providing recommendations and guidance for organisations to manage and disclose their nature-related dependencies, impacts, risks and opportunities (DIROs).
The Corporate Sustainability Reporting Directive (CSRD) is an EU Legislative Act that requires businesses to disclose information on risks and opportunities relating to their Environmental, Social and Governance (ESG) practices with a focus on people and the environment. The CSRD goes beyond carbon and includes reporting requirements on nature.
Double materiality is an approach to materiality that requires businesses to disclose; (i) how they have an impact on sustainability matters and; (ii) how that impact will affect the business's finances.
.png)
.png)