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Key Impact Points:
- 57% Increase in Adoption: Total of 502 companies and financial institutions now committed to TNFD-aligned risk management and reporting since January 2024.
- Global Reach: Organizations from 54 jurisdictions and 62 sectors, including 129 financial institutions with $17.7 trillion in assets under management.
- Alignment with Global Goals: TNFD framework operationalizes Target 15 of the Global Biodiversity Framework, promoting corporate reporting on nature-related risks.
The Taskforce on Nature-related Financial Disclosures (TNFD) announced at COP16 in Cali, Colombia, that over 500 organizations have committed to aligning their risk management and corporate reporting with TNFD recommendations. This marks a 57% increase since the initial announcement in January 2024.
Why it matters:
The TNFD’s framework is fully aligned with the goals of the Global Biodiversity Framework (GBF), specifically operationalizing Target 15, which calls for corporate reporting on nature-related dependencies, impacts, and risks by 2030.
By the numbers:
- 502 organizations from 54 jurisdictions, including 25 emerging markets.
- Representation across 62 of 77 SASB SICS sectors.
- Publicly listed companies with over $6.5 trillion in market capitalization.
- 129 financial institutions managing $17.7 trillion in assets, including 25% of the world’s systemically important banks.
Related Article: Bank of America Publishes Enhanced Task Force on Climate-Related Financial Disclosures
Notable new adopters include:
- Financial Institutions: abrdn, Banco de Bogotá, Manulife Investment Management.
- Companies: KPMG, Freeport-McMoRan, Qantas, Morrisons, Sainsbury’s, Jindal Stainless Limited, JSW Group, JA Solar Technology, Mitsubishi Electric Corp, Philips, EDP, Electrobras, Tokyo Electric Power, Logitech International.
What they’re saying:
Prabodha Acharya, Chief Sustainability Officer at JSW Group:“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. I feel the holistic approach of TNFD will enhance our ability to manage environmental, social and financial risks cohesively. Adopting the TNFD will help us ensure consistency and coherence in our strategic approach to risk.”
Brian Kernohan, Chief Sustainability Officer at Manulife Investment Management:“With over 40 years of experience as an institutional manager of natural capital investments and as one of the pioneers in issuing a TNFD-aligned nature disclosure, becoming a TNFD Adopter is a logical next step for us. In 2024 alone, we have made several important ‘LEAPs’ forward in our ability to identify nature-related risks and opportunities, and we believe the best is yet to come.”
Sarah Moody, Chief Corporate Affairs & Sustainability Officer at abrdn:“At abrdn, the environmental transition – the interconnecting relationship between climate and nature – is a key pillar of our sustainability strategy. Becoming a TNFD Adopter is a vital step on our sustainability journey. Alongside this, we are developing an engagement approach within our investments team focused on the companies with the most material exposure to nature and are seeking the best approaches to data gathering on nature-related impacts.”
The big picture: These organizations intend to begin publishing TNFD-aligned disclosures as part of their annual corporate reporting for FY2024 or FY2025, aligning with global efforts to enhance transparency on nature-related financial risks.
David Craig, Co-Chair of the TNFD, commented:“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.”
What’s next: The TNFD will continue to support organizations in implementing its framework, with the expectation that more companies and financial institutions will commit to TNFD-aligned reporting, further integrating nature-related considerations into financial decision-making.
Learn more: Full list of TNFD Adopters