The Taskforce on Nature-related Financial Disclosures (TNFD), in partnership with Accounting for Sustainability (A4S), has launched a new regulatory briefing document to help Chief Financial Officers (CFOs) evaluate the commercial impact of environmental degradation on corporate performance.
The publication, titled Asking Better Questions on Nature for CFOs, was presented at the annual A4S Summit in London. The text serves as the third instalment in the TNFD’s ongoing strategic series for executive decision-makers, joining previous versions tailored for board directors and chief investment officers.
The framework provides a targeted list of diagnostic questions designed to help finance executives integrate nature-related operational dependencies, commercial risks, and market opportunities directly into corporate risk management, capital allocation, financial planning, and asset valuation models.
The guide emphasises that corporate business models maintain direct or indirect exposures to natural ecosystems, relying on stable access to clean water, arable land, raw materials, and broader ecosystem services. Conversely, industrial activities that accelerate biodiversity loss undermine the long-term viability of these essential inputs.
According to the TNFD, unmanaged nature-related risks can lead to severe financial consequences for enterprises, including:
- The creation of stranded physical assets.
- Severe operational disruptions across global supply networks.
- Escalating manufacturing and commodity production costs.
- Increased corporate insurance premiums.
- Depreciated institutional asset values.
The document prepares finance leaders to handle increasing scrutiny from corporate boards, institutional investors, and regulatory bodies demanding quantitative transparency on environmental risk exposures.
Tony Goldner, Chief Executive Officer of the TNFD, noted the swift commercial transition of biodiversity issues: “Nature has quickly shifted from a CSR and compliance issue to a strategic risk and opportunity management imperative. CFOs need to understand how the resilience of the cash flows of their business depend on nature’s flows of essential inputs into their operations and business model.”
Jessica Fries, Executive Chair of A4S, highlighted data from S&P Global research indicating that 85 per cent of companies within the S&P Global 1200 index exhibit significant dependencies on nature within their direct operations. “Gaining a better understanding of nature-related risks and opportunities, impacts and dependencies, is critical,” Fries stated. “This guide – developed by finance, for finance – helps CFOs and other senior finance professionals ask the right questions of their business, and translate awareness into action.”
The publication includes real-world case studies and functions alongside the broader A4S Nature Guidance Series and the core TNFD disclosure recommendations to assist corporate finance teams with identifying, managing, and reporting ecological risks.
