The Taskforce on Nature-related Financial Disclosures (TNFD) has witnessed a 30% increase in adopters of their corporate reporting recommendations since January 2024. This was announced by TNFD at the London Climate Action Week (LCAW) where they released a suite of sector guidance, including recommended sector-specific disclosure metrics, to support reporting by companies and financial institutions.
The number of companies committed to disclosing their material nature-related issues based on TNFD recommendations has risen to 416, with 96 new organisations joining from over 50 jurisdictions and across 62 sectors of the Sustainable Industry Classification System (SICS). These publicly listed companies now represent over US$6 trillion in market capitalisation, marking a 50% increase since TNFD’s Early Adopter announcement in January.
Additionally, 114 financial institutions, managing US$15.9 trillion in Assets under Management, including 25% of the world’s systemically important banks (GSIBs), have registered as Adopters. These institutions have expressed their intent to adopt TNFD recommendations and publish aligned disclosures starting from FY2024 or FY2025 outcomes.
TNFD disclosure reports based on 2023 financial year outcomes have already begun appearing in the market less than a year after the release of the task force’s recommendations.
David Craig, Co-Chair of the TNFD, said, “The ongoing uptake of the TNFD’s recommendations is further evidence that the mindset in business and finance is quickly shifting to a recognition that accelerating nature loss is imposing costs and risks on society as a whole as well as to individual business models and capital portfolios. Voluntary uptake now of the TNFD recommendations is the best way to meet these shifting expectations and the best way to meet new regulatory requirements such as CSRD. We are delighted that organisations globally are also using TNFD to prepare for the forthcoming expansion of the global sustainability reporting baseline now that the ISSB has commenced its important work on nature building on the recommendations of the Taskforce”.
