Key Impact Points:
- 502 organizations, representing $17.7 trillion AUM, adopt TNFD framework to address nature-related risks.
- Significant growth in TNFD adoption: 57% increase since January 2024.
- Global and sectoral diversity: Companies span 54 jurisdictions, including 25 emerging markets and 62 sectors.
Global Adoption of TNFD Framework
At COP16 in Cali, Colombia, the Taskforce on Nature-related Financial Disclosures (TNFD) announced that 502 companies and financial institutions have committed to adopting TNFD’s voluntary nature-related risk reporting. This marks a 57% increase since the first announcement in January 2024, signaling significant market momentum in integrating nature risks into corporate reporting.
Among the adopters are 129 financial institutions managing $17.7 trillion in assets, including 25% of the world’s systemically important banks (GSIBs). Publicly-listed companies represent $6.5 trillion in market capitalization, spanning 54 jurisdictions and 62 sectors, including financial services, mining, electronics, and utilities.
Sector-Wide Commitment
The TNFD framework is aligned with the Global Biodiversity Framework (GBF), particularly Target 15, which calls for mandatory corporate reporting of nature-related dependencies, impacts, and risks by 2030. Adopters like KPMG, Mitsubishi Electric Corp, and JSW Group are already preparing to integrate TNFD-aligned disclosures into their FY2024 and FY2025 corporate reporting.
Prabodha Acharya, Chief Sustainability Officer at JSW Group, emphasized the holistic impact: “TNFD is guiding our efforts to align our broader environmental, social and governance efforts as we integrate nature-related risks into JSW Group’s overall sustainability strategies.”
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Leaders Across Sectors See Benefits
Brian Kernohan, Chief Sustainability Officer at Manulife Investment Management, highlighted the long-term benefits of TNFD adoption: “With over 40 years of experience as an institutional manager of natural capital investments, becoming a TNFD Adopter is a logical next step for us.”
Companies like Brambles and Sainsbury’s echoed the importance of addressing nature-related dependencies in their business models. Juan Jose Freijo of Brambles stated: “The TNFD challenges a deeper investigation of a business’s dependencies and impacts on the natural world and its ecosystems.”
David Craig, Co-Chair of the TNFD, noted the increasing recognition of nature as a material risk for businesses: “The speed of voluntary market adoption…highlights the growing appreciation among companies and financial institutions that nature is a material risk issue and a source of competitive advantage.”
With nature-related risk disclosure gaining traction globally, the TNFD framework continues to provide essential guidance for aligning business strategies with nature-positive outcomes.
Related Article: 57% of Firms Plan to Invest in Nature, Tech-Based Carbon Removal for Net Zero: Nasdaq Report
