Capping off the first week of the UN COP 16 Biodiversity conference in Colombia, the Taskforce on Nature-related Financial Disclosures (TNFD) outlined it proposal for a Nature Data Public Facility (NDPF).
In a draft roadmap issued on Saturday (26 October), the TNFD highlighted market participants’ “concerns about the accessibility, quality, comparability, verifiability and assurability of the data they need for corporate reporting”.
Cathrine Armour, director of data initiatives at TNFD, said in a statement: “Enhancement across the nature data value chain will be required, including funding for upstream data providers to continue to expand their nature data assets as a global public good, as well as better accessibility to high-quality nature data at lower cost for end users.”
These challenges associated nature biodiversity were noted by the disclosure initiative back in 2022, prompting it to launch a scoping study on the creation of a global public data facility for biodiversity information last year.
Following the study, TNFD executive director Tony Goldner said there was a “strong case for connecting, scaling and maintaining nature-related data through a global public data facility”.
At the time, James d'Ath, TNFD data and analytics technical lead, told Corporate Disclosures that the “recommended approach is a federated network of data, enabling existing players with long standing platforms to be connected together”.
This facility is intended to enable data access for preparers, encourage participation from a range of data providers, and help to align indicators with the latest guidance and requirements on biodiversity disclosures.
In its roadmap published at COP 16, the TNFD said the “central feature” of the proposed NDPF is that it will contain open access to a foundation set of nature-related data to support companies’ with their disclosures and target setting.
The document reads: “The driving ethos of a NDPF is that the planet is the client. This approach also recognises that small and medium-sized enterprises (SMEs) that typically have no capacity to pay for essential data will also need access to relevant nature-related data.”
It continues: “Agreement on, and adoption of, common nature-related data licensing terms that recognise the use of non-commercial, nature-related data as a public good for the specific use cases of corporate reporting and target setting is key to facilitating data access and use.”
Therefore, the TNFD proposed NDPF would be based on a tiered licensing structure which is “harmonised with open data terms and conditions” but also “recognises the need to extend nature data licensing beyond open use”. Facilitating commercial access, supply and use of nature-related data that is not provided freely and openly has been earmarked as a key consideration for the NDPF moving forwards.
TNFD announced that it plans to advance this initiative through a pilot testing program with both data suppliers and companies next year.
The document reads: “This will help to define more precisely the long-term value chain enhancement projects of the highest priority and with the biggest potential impact that need to be funded.”
As well as testing the specifications of an NDPF with market participants, the pilot testing will also seek to provide clarity on nature-related data principles and specify which projects to improve nature-related data should be prioritised and funded in the medium term.
According to the draft roadmap, the testing of the proposed model NDPF will enable to the TNFD to understand what is “feasible” given the current selection of data sets and sources and the corresponding needs of companies.
“Whether, when and how best to proceed with the establishment of a permanent open access nature data facility will be determined at the end of the pilot testing period and subject to the availability of long-term funding for such an initiative,” the document reads.
The TNFD expected to outline the insights from the pilot testing in the final quarter of next year, when it will also seek funding from governments and philanthropic organisations for the NDPF programme. If the necessary governance and funding arrangements are in place, the facility is expected to be launched in the first quarter of 2026.
Notably, the building of a data facility is outside the mandate of the TNFD and it will therefore consider commissioning a “new greenfield capability” or investing in and upgrading existing data capabilities.
The TNFD’s proposed roadmap for pilot testing the NDPF is open for public consultation until 17 January 2025.
Channels:Biodiversity