Over 800 Companies Commit to TNFD-Aligned Nature Reporting Ahead of New ISSB, ISO Standards

The Taskforce on Nature-related Financial Disclosures (TNFD) revealed that more than 800 companies and financial institutions across 57 countries have now committed to corporate reporting aligned to the TNFD recommended disclosures, marking a 14% increase in TNFD adopters in less than a year.

The TNFD was launched in 2021, building on the success of the Task Force on Climate-related Financial Disclosures (TCFD), to support organizations in reporting and acting on their nature-related risks. The organization published its final recommendations for nature-related risk management and disclosure in September 2023, and recently launched LEAP 2.0, its updated guidance for helping companies assess and report on nature-related dependencies, impacts, risks and opportunities.

The growth in TNFD adopters comes as reporting on nature-related risks and opportunities becomes increasingly mainstream and standardized, most notably with the upcoming release of the IFRS Foundation’s International Sustainability Standards Board’s (ISSB) practice statement on nature-related disclosures. Additionally, last month the International Organization for Standardization’s (ISO) approved a TNFD-initiated proposal to develop the TNFD LEAP approach into an ISO standard.

The TNFD indicated last year that that it will end its technical work program this year following the initiation of the ISSB’s nature-related work, shifting its focus to supporting standard setting at the ISSB, and now ISO, as well as the Global Reporting Initiative (GRI).

In its new update, the TNFD said that 836 organizations have committed to corporate reporting aligned to the TNFD recommended disclosures, including financial institutions representing more than $26 trillion in AUM, and publicly listed companies accounting for over $10.5 trillion in market capitalization.

Additionally, the TNFD also recently reported that it has found that more than 1,100 organizations are now making one or more nature-related disclosures aligned to the TNFD recommendations, with a global average of 8 of the 14 recommended disclosures.

With the release of the update, the TNFD confirmed that its updated recommendations and LEAP guidance marks the completion of its assessment and disclosure-related guidance development work programme, and that its upcoming priorities will include supporting the nature-related standard-setting work of the ISSB, GRI and ISO, and other capacity-building and market-enabling efforts.