In September 2023, version 1 of the Recommendations of the Taskforce on Nature-related Financial Disclosures was released. The Recommendations include 14 Recommended Disclosures covering four broad categories: Governance, Strategy, Risk and Impact Management, and Metrics and Targets.

To support the generation of disclosures, the Taskforce on Nature-related Financial Disclosures (TNFD) have developed the LEAP approach to assess nature-related impacts, dependencies, risks, and opportunities. The four-step LEAP approach broadly involves:

1. LOCATE the interface with nature,

2. EVALUATE dependencies and impacts,

3. ASSESS risks and opportunities,

4. PREPARE to respond and report.

As noted in the TNFD document Guidance on the identification and assessment of nature-related issues: the LEAP approach, the Accounting for Nature® Framework can be used as a credible tool in the EVALUATE step to measure the state of nature to identify nature-related impacts in a consistent, scientifically rigorous, transparent, and verified way. The state of nature results generated in the EVALUATE step can then be carried through to the ASSESS and PREPARE steps.

To underpin the Recommended Disclosures and ensure they are informed by reliable and relevant data, the TNFD has also published a set of five Core Disclosure Metrics that are used to understand impacts and dependencies on nature. One of these Core Disclosure Metrics (Metric 5) relates to the state of nature. The TNFD recommend that the state of nature is measured using an Ecosystem Condition Metric (for ecosystems) and Extinction Risk Metric (for species).

The Accounting for Nature® Framework and its core metric, the Econd®, is recognised by TNFD (in Annex 2 of Guidance on the identification and assessment of nature-related issues: the LEAP approach) as a headline standard for measuring changes in the state of nature. Depending on the type of Environmental or Ecosystem Asset, the Econd® can be used as an Ecosystem Condition Metric or Extinction Risk Metric.

The Econd®, or “Environmental Condition Index”, is the core metric used in the Accounting for Nature® Framework. The Econd® is a composite index which summarises complex scientific information into a single metric between 0 and 100, where 100 represents the Condition of an Environmental Asset in its undegraded, ideal, or best-on-offer state (e.g. a pristine old growth forest). This state is called the ‘Reference Condition Benchmark’, or simply the Reference Benchmark. On the contrary, an Econd® of 0 indicates that the Environmental Asset is fully degraded, dysfunctional, and/or no longer existing (e.g. a cleared field).

An Econd® is constructed using an Accounting for Nature® Accredited Method that outlines a set of measurable and scientifically robust indicators that are aggregated in a meaningful way and together represent the Condition of a specific Environmental Asset. While the Econd® is a simple metric, there is significant complexity in the way it is constructed and this is outlined in detail in the Method(s).

Yes, the Accounting for Nature® Framework is designed to support and underpin nature markets and biodiversity market schemes, when adopted under the correct certification and license pathway.

It is a robust measurement, reporting, and verification standard that can be integrated into these markets.

1. Alignment with Nature Markets: The Accounting for Nature® Framework is built with the aim of supporting biodiversity market schemes and Nature Credits. It can accommodate the unique needs and requirements of these markets, ensuring practical integration.

2. Claims Rules for Credibility: The Accounting for Nature® Framework incorporates Claims Rules, which are vital in maintaining the credibility and effectiveness of nature markets. These rules ensure that all claims made by participants within these markets are accurate and verifiable, preventing greenwashing and safeguarding biodiversity.

3. Accountability and Transparency: The Framework promotes accountability and transparency, both of which are essential in nature markets. It enables accurate measurement and reporting of the impact of biodiversity market schemes and Nature Credits, fostering trust among investors, organisations, and the public.

The Accounting for Nature® Framework is a powerful tool that can be used to support nature markets as it offers a comprehensive solution to ensure that investments in nature-based solutions make a genuine, positive impact on the environment.

The Accounting for Nature® Framework provides a standard for measuring and verifying the environmental co-benefits of projects funded by the Land Restoration Fund (LRF). By using the Framework and Accredited Methods, projects can ensure they meet rigorous standards for environmental outcomes, which helps build credibility and transparency.

This helps landholders and stakeholders ensure that projects are delivering real, measurable improvements to the environment and supports the integrity of the carbon credits generated.

More information about the application of the Accounting for Nature® Framework for LRF projects can be found on the Queensland Government website in the Land Restoration Fund Co-Benefits Standard document.

The NSW Government, in collaboration with NSW Koala Strategy and NSW Local Land Services, has launched a grant program, Living Carbon Grants, to assist landholders in the North Coast Local Land Services region, Mid Coast Local Government area, and the Riverina Local Land Service region in setting up carbon projects with verified co-benefits. The grant program is designed to help landholders secure the health of their land, improve productivity, and unlock new income streams.

Successful applicants can receive up to $200,000 of grant funding, and the landholder is required to commit funding and/or in-kind contributions to complete the project. To be eligible, landholders must register their carbon project under the national Australian Carbon Credit Unit (ACCU) Scheme with the Clean Energy Regulator before applying for a grant.

Project criteria include:

• Planting between 10 to 200 hectares of appropriate species on their land

• Plant with the aim of revegetating habitat for threatened or iconic species endemic to the area

• Deliver on and comply with all Australian Carbon Credit Units (ACCU) Scheme and Accounting for Nature (AfN) Method requirements beyond the grant's lifetime.

On-ground support partners are available in each eligible region to assist landholders with their applications and project implementation.

For more information and to find an on-ground contact to support your application, visit the grant website for NSW Climate and Energy Action.

We welcome the development of the Nature Repair Market and the Australian Government’s ongoing efforts to meaningfully consult with Accounting for Nature. We are also pleased to be included as a Member of the Government’s Nature Positive Matters initiative. 

Our scientifically rigorous and internationally recognised framework has been tested and proven across a wide range of projects, ensuring that environmental outcomes are measurable, comparable, and independently verified. Our framework provides a world-leading, streamlined approach that integrates biodiversity outcomes within emerging environmental markets.

Given the challenge of aligning biodiversity co-benefits to carbon credits, our framework’s flexibility and proven methodologies are well-positioned to overcome these obstacles and deliver a positive impact on nature. As the Nature Repair Market develops, we look forward to continue working with the Commonwealth to align efforts to ensure simplicity, integrity, and scalability for those working to enhance nature, including through the use of robust and repeatable Biodiversity Assessment Instruments and measurement approaches that are consistent with the Accounting for Nature® Framework.