We last covered the Taskforce on Nature-related Financial Disclosures (TNFD) in early 2024 here. At that point, 320 organisations in 45 countries or areas had committed to using the TNFD framework to guide their reporting on nature-related risks and opportunities.
By February 2025, the TNFD Forum had grown to over 1,700 institutions, with more than 520 companies and financial organisations pledging to adopt the framework. This growing momentum reflects a wider shift: understanding how nature impacts business is no longer optional, it is becoming essential for good decision-making.
What’s New?
Research shows nature loss hits the bottom line
In June 2025, during London Climate Action Week, TNFD shared new research that puts hard numbers behind a point many have suspected: when nature is degraded, businesses and investors face real financial risks. The analysis linked damage to ecosystems and biodiversity with costs such as disrupted supply chains, reduced availability of key resources, and higher operational expenses. These findings make the case that nature is not just an environmental issue — it is a financial one that can affect revenues, costs, and long-term economic stability. A public consultation is open to gather additional evidence and feedback on the accompanying nature-related financial risks database until 31 December 2025.
Investors are paying closer attention
More investors and asset managers are using TNFD’s framework to understand how nature loss could affect the companies they finance. They are examining the degree to which certain industries are dependent on nature — for example, agriculture on pollinators or manufacturing on water availability — and how these dependencies translate into financial risk. However, the data is still developing, and many organisations are finding it challenging to interpret indicators consistently.
Alignment with EU sustainability reporting
TNFD is working closely with European authorities to ensure its framework fits smoothly into the EU’s sustainability reporting rules (ESRS) under the Corporate Sustainability Reporting Directive (CSRD). In July 2025, TNFD submitted recommendations to EFRAG as part of the current “omnibus” review, which is open for public consultation until 29 September 2025. Full details are available via EFRAG’s consultation portal.
Its key proposals include applying the LEAP process (Locate–Evaluate–Assess–Prepare) consistently across all nature-related ESRS topics (E2–E5), centralising environmental data points to reduce duplication, and embedding “dependencies” on nature alongside impacts, risks, and opportunities (DIROs) to provide a complete double-materiality perspective. These changes are designed to simplify compliance while keeping reporting scientifically robust.
Making it easier to use GRI and TNFD together
In partnership with the Global Reporting Initiative (GRI), TNFD has released a practical guide to help organisations report on nature using both systems without duplicating work. The guide maps the overlap between the two approaches and offers examples from companies that have successfully applied both. For many, this means less complexity and more consistent reporting across sustainability topics.
What This Means for You
- The financial case is clear – Nature loss can directly affect your costs, revenue, and economic stability. Start factoring this into business and investment decisions.
- Regulations are becoming easier to navigate – With TNFD aligning to EU rules, it is simpler to meet multiple reporting requirements at once.
- You can save time on reporting – If you already use GRI, the new guide helps you integrate TNFD without doubling your workload.
- There’s a chance to influence the rules – The EU consultation on sustainability reporting is open now. Sharing your experience could help shape future requirements.
