TNFD

TNFD (Taskforce on Nature-related Financial Disclosures) is a global initiative launched in 2021 that provides a framework for organisations to report and act on nature-related risks and opportunities — including biodiversity loss, water scarcity, land use, and pollution. It operates as the nature-and-biodiversity equivalent of TCFD (which focuses on climate risk).

TNFD and Indian Manufacturers

For Indian manufacturing companies, the most immediately relevant TNFD dimension is water — specifically water use in areas of water stress. Indian textile manufacturers in regions like Tiruppur (significantly water-stressed), Ludhiana, and Punjab have direct exposure to TNFD water disclosure requirements.

TNFD requires organisations to assess their dependencies on nature-related ecosystem services. For a water-intensive process like dyeing and finishing in textiles, this means understanding:

• How much water is withdrawn from which source (surface water, groundwater, rainwater harvesting)
• Whether the source watershed is classified as a high or extremely high water-stress area
• What is discharged back, in what condition, and to which receiving water body

TNFD in Sustaineve

Sustaineve’s Water & Effluents module in the Environment pillar captures the underlying data (water withdrawal by source, discharge volumes, water stress classification by facility location) that TNFD, ISO 14046, and BRSR Principle 3 (Water) disclosures require. A manufacturer collecting continuous water data via Sustaineve can satisfy TNFD disclosure requirements as part of their regular reporting cycle.

TNFD Adoption Timeline

TNFD recommendations were published in September 2023. Voluntary adoption is growing among large companies, and several financial institutions have indicated they will request TNFD-aligned disclosures from major borrowers and portfolio companies.