The Taskforce on Nature-related Financial Disclosures has released its final sector guidance for technology and communications, establishing a framework to assess nature-related dependencies, impacts, risks and opportunities across digital infrastructure and hardware supply chains.
Framework structure and coverage across digital value chains
The new guidance applies across the technology and communications ecosystem, including semiconductor manufacturing, electronic manufacturing services, hardware, software, data centres and telecommunications services. Formulated following a three-month public consultation and developed alongside an industry working group, the framework brings the total number of sectors covered by TNFD guidance to 18, representing approximately 60% of SICS industries.
The framework is organized into three distinct components: an overview of the sector and its value chain, specific guidance on applying the Locate, Evaluate, Assess and Prepare (LEAP) approach, and targeted sector disclosure metrics. Key areas of concern highlighted in the document include freshwater dependencies in chip manufacturing and data centres, land and ocean impacts from physical networks, and pollution risks linked to electronic waste and battery disposal.
LEAP use case targets AI and water stress in data centres
Alongside the primary guidance, the TNFD published a practical LEAP use case produced in collaboration with Knowledge Partner NatureFinance. Drawing on insights from tech corporates and financial institutions, the study examines water risks associated with artificial intelligence infrastructure, particularly semiconductor fabrication and data centre operations.
The analysis emphasizes that rapid growth in digital services and AI expansion is exacerbating strain on freshwater supplies, particularly in water-stressed geographic locations. The document builds upon earlier TNFD work regarding water dependencies and provides actionable guidance for both corporate risk managers and institutional investors managing portfolio risk.
Institutional backing and framework alignment
Industry representatives and investors welcomed the release, noting that standardising nature-related disclosures provides decision-useful information for capital allocation and corporate management. Supporters highlight the importance of connecting facility-level operational impacts with broader landscape considerations.
Comprising 40 business and finance executives, the TNFD was formed in 2021 with G20 support. More than 800 organisations representing over USD 26 trillion in assets under management have committed to reporting aligned with the recommendations published in September 2023. The framework operates alongside the climate disclosures of the TCFD and aligns with global reporting frameworks, including the GRI, the EU Corporate Sustainability Reporting Directive (CSRD) and ISSB sustainability standards.
Frequently Asked Questions
Which industries are covered by the TNFD technology and communications guidance?
The guidance covers semiconductors, electronic manufacturing services and original design manufacturing (EMS & ODM), hardware, data centre and telecom infrastructure, software and IT services, internet media and services, and telecommunications services.
What is the focus of the new LEAP use case published alongside the guidance?
Developed with NatureFinance, the use case examines water-related dependencies, impacts, risks and opportunities associated with semiconductor manufacturing and data centre infrastructure, specifically addressing pressures driven by AI expansion.
