What key uncertainties may affect potential changes.What new nature-related risks and opportunities may emerge as a result of those changes and.How changes may unfold over time and why.What may be different in the future from today.The core purpose of a scenario exercise when applying the TNFD framework is to prompt thinking around: 1.2 Primary objectives of a scenario analysis The TNFD will use those further insights to refine the guidance for v1.0 of the framework to be published in September 2023. The TNFD welcomes further feedback and pilot testing of this draft guidance by 1 June 2023 to help ensure the guidance is practical and useful for market participants. It intends to extend and enhance the application of the approach to financial institutions in updates of the TNFD framework, building on pilot testing and feedback from market participants. The TNFD is designing its initial approach to scenario analysis focusing on use by corporates. The TNFD has drawn on feedback and insights from these pilot tests to develop this draft scenario guidance for v0.4 of the beta framework. A set of initial pilot tests of the proposed approach has also been undertaken, focusing initially on use by corporates to improve decision-making, with a separate set of pilot tests with asset owners to begin to explore the approach when used by financial institutions. The TNFD has received feedback from market participants on this proposed approach through its open innovation process which has informed the development of this draft guidance. Outlining its proposed approach to scenario analysis to support application of the TNFD framework, as part of v0.3 of the TNFD beta framework. In November 2022, the Taskforce published a discussion paper Linked to the TNFD’s recommended risk management and disclosure approach, scenario analysis allows organisations to explore the possible consequences of nature loss and climate change, the ways in which governments, markets and society might respond, and the implications of these uncertainties for business strategy and financial planning. Like the Task Force on Climate-related Financial Disclosures (TCFD), the TNFD recognises the utility and importance of scenario analysis to help organisations develop and test the resilience of their organisation’s strategy given a complex set of uncertainties. ![]() Good strategy is the art of making choices with the best available information under conditions of uncertainty. Summary of feedback on TNFD framework beta v0.1.Summary of feedback on v0.2 of the TNFD beta framework.Summary of feedback on v0.3 of the TNFD beta framework New.Practical steps for piloting – Guidance for individual and TNFD Forum pilots.Ways to pilot test: Three-tiered approach.Approach to additional sector and biome guidance.P2: Target setting & performance management New.A4: Risk and opportunity materiality assessment. ![]() A3: Additional risk mitigation and risk and opportunity management.A2: Acknowledgement of current nature-related risk management efforts. ![]()
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