New framework helps organisations report nature-related impacts

After two years of design and development, the Taskforce on Nature-related Financial Disclosures (TNFD) has published its final set of 14 recommendations for organisations to report on nature-related dependencies, impacts, risks and opportunities.

The recommendations and guidance have been designed to help business and finance integrate nature into decision making, and ultimately support a shift in global financial flows away from nature-negative outcomes and toward nature-positive outcomes.

Most companies, investors and lenders today do fully not understand their relationship with nature and are inadequately accounting for nature in their strategies and capital allocation decisions. Data released by environmental impact organisation CDP suggests that nearly 70% of companies disclosing data through its platform did not assess the influence of their value chain on biodiversity in 2022.

Every industry – from agriculture to technology – has an impact on nature, and is in turn susceptible to nature-based risks. The degradation of forests, land, soil, water sources and pollinators represents a significant threat to global supply chains, while negative business impacts in these areas are increasingly resulting in reputational damage and lawsuits (read more about the growth of climate litigation).

David Craig, Co-Chair of the TNFD, said: “Nature loss is accelerating, and businesses today are inadequately accounting for nature-related dependencies, impacts, risks and opportunities. Nature-risk is sitting in company cash flows and capital portfolios today. The costs of inaction are mounting quickly. Businesses and financial institutions now have the tools they need to take action.”

Nature loss is accelerating, and businesses today are inadequately accounting for nature-related dependencies, impacts, risks and opportunities.

Under the new science-based framework, businesses will not simply be asked to measure their impacts, but will be encouraged to set science-based targets and fully embed nature-related considerations in their strategies.

Identifying and accounting nature dependencies

The framework covers 14 recommendations within four pillars: governance, strategy, risk & impact management, and metrics & targets. Reporting within these parameters will help a business identify its dependencies on nature, impacts on nature, the risks resulting from dependencies and impacts, and opportunities for an organisation to benefit nature through positive impact or by mitigating negative impacts.  

The framework also draws on other relevant standards including the International Sustainability Standards Board (ISSB) and the Global Reporting Initiative (GRI), both of which acted as knowledge partners to the TNFD.

As TNFD Co-chair Elizabeth Mrema notes, nature is deteriorating globally and biodiversity is declining faster than at any time in human history. The science is clear on the urgent need for action. “Nature degradation is increasing and with six of the nine planetary boundaries already breached, nature risk is financial risk,” she said. “Yet to date, businesses have mostly considered nature to be an unlimited and free provider of critical inputs into their operations and value chains.”

Business pilots

A number of businesses, including Holcim, Reckitt, and Natura&Co, have been privately trialling the framework, while pharmaceutical giant GSK – which has pledged to be nature-positive by 2030 – has publicly stated its committed to the recommendations.

“Protecting nature makes our business more resilient and helps us deliver for patients by ensuring the supply of raw materials needed to manufacture vital medicines and vaccines,” said GSK Chief Financial Officer, Julie Brown. “That’s why we’re proud to be a member of the Taskforce on Nature-related Financial Disclosures. We have started to implement the TNFD methodology to better understand our nature-related risks and opportunities and are committed to publish our first TNFD disclosures from 2026, based on 2025 data.”

The global importance of nature has become an increasing point of focus in recent times, catalysed in part by the historic ’30 by 30’ deal agreed at the COP15 Biodiversity Conference in December 2022. More than 190 nations committed to protecting 30% of the planet’s lands, seas, coasts and inland waters by 2030, with the agreement containing new nature disclosure commitments for business.

Nations around the world are now looking closely at their social and economic relationships with nature. Brazil has outlined plans to strop deforestation in the Amazon, for example, while France recently unveiled the draft of its new Biodiversity Strategy. The UK Government, meanwhile, is soon set to implement new biodiversity net gain legislation ahead of parliament’s upcoming inquiry on the role of natural capital in the green economy.