Over 500 companies and financial institutions have pledged to report on nature and biodiversity risks in line with the Taskforce on Nature-related Financial Disclosures (TNFD) framework. This significant commitment, announced at the COP16 Biodiversity Conference, represents a rise from 320 earlier this year and aligns businesses globally with TNFD recommendations aimed at fostering standardized, nature-focused corporate reporting.

The TNFD’s recommendations, finalized in September 2023, were developed after a two-year process and draw inspiration from the Task Force on Climate-related Financial Disclosures (TCFD). These guidelines cover governance, strategy, risk management, and target-setting around nature-related challenges, guiding companies on disclosing their impact on ecosystems and biodiversity. Organizations are expected to begin incorporating these TNFD-aligned disclosures in their annual reports for fiscal years 2024 or 2025.

This surge in commitment also supports broader global sustainability disclosure efforts. The International Sustainability Standards Board (ISSB) of the IFRS Foundation has indicated that it will integrate TNFD’s guidance into its new biodiversity and ecosystem research projects. Additionally, environmental nonprofit CDP plans to align its reporting questionnaire with TNFD, while the Global Reporting Initiative (GRI) has also collaborated with TNFD in developing its Biodiversity Standard.

David Craig, Co-Chair of the TNFD, said:

"The speed of voluntary market adoption over the past year since the release of the TNFD recommendations highlights the growing appreciation among companies and financial institutions across sectors and geographies that nature is a material risk issue for their business and a new source of opportunity and potential competitive advantage. We have seen significant uptake across sectors – in particular from asset managers, as they address climate and nature risk in their portfolios. Going forward, the growth in these assessments and public disclosures is helping direct financial flows towards more resilient business models and nature-positive outcomes."

Notable firms embracing the TNFD framework include KPMG, Qantas, and Manulife Investment Management. Together, the 502 companies, which account for over $6.5 trillion in market value, and 129 financial institutions, representing $17.7 trillion in assets, underscore the broad international support for biodiversity and sustainability standards, with commitments spanning 54 jurisdictions and multiple sectors.