Two years on – where is the TNFD now?

At New York Climate Week 2025, the Task Force on Nature‑related Financial Disclosures (TNFD) released its 2025 Status Report (the Report) - two years after it made its final disclosure recommendations in September 2023.

The Report shows accelerating uptake of nature‑related assessments and reporting, growing investor engagement, and deepening alignment with other reporting standards. The Report also underscores the risks around potential data gaps, and the value in further work to integrate nature considerations into corporate decision-making and disclosures.

Highlights

• 620 organisations from over 50 countries or areas, and USD 20 trillion in AUM have publicly committed to getting started with reporting aligned to the TNFD recommendations.
• Evidence of over 500 first- and second-generation reports have now been published with some alignment to the TNFD recommendations.
• 63% of companies and financial institutions surveyed for the Report believe their nature-related issues are as significant, or more significant, than climate-related issues to the future financial prospects of their business.
• 78% of those surveyed companies that have already published their reports, have integrated the presentation of their climate and nature reporting.
• Most reporters disclose against some - but not all - of TNFD’s 14 recommended disclosures, with many covering fewer than 10.

Early reports focus on risk and impact management

Across the TNFD’s four ‘pillars’ of recommended disclosures, the most common so far has been risk and impact management disclosures, followed by governance-related disclosures. Metrics and targets disclosures, and the use of scenarios to assess the resilience of strategies, have had lower initial uptake. 

Many market participants have started with existing water, waste and forestry indicators as a way to commence their TNFD-aligned reporting. Some continue to disclose through existing platforms (e.g. CDP) without explicitly labelling reports as TNFD‑aligned, notably in the US, China and Germany.

More broadly, nature-related reporting has steadily increased since 2015 and more recently seen greater diversification beyond climate, to also include more disclosures being made by more companies in respect of forests, water security, biodiversity and plastics.

Policy, regulation and investors are driving increased take-up

The Report identifies two main drivers behind the growing focus on nature-related assessments and reporting: 

1. Policy and regulatory. Policymakers are responding to growing evidence of physical climate risks, widening insurance protection gaps and the economic impacts of water stress and ecosystem degradation. Nearly 70% of surveyed organisations are already subject to relevant regulatory requirements or expect to be within three years.
    
2. Investor concern and stewardship. A TNFD joint report found extensive evidence of the financial effects of nature‑related risks, even if these are not yet consistently assessed or disclosed as financially material. Over 50% of investors reported they are very concerned about the market impacts of nature loss and are seeking better company data, and other tools to assess portfolio exposure. The Report highlights in particular that:
   
   
   1. Network engagement is growing. The Principles for Responsible Investment’s (PRI) Spring Initiative has mobilised 92 investors; and Nature Action 100 (NA100) has mobilised over 230 institutional investors, representing over USD 30 trillion in AUM. 
       
   2. Stewardship expectations are rising. Around 30% of asset managers have published an assessment of the direct impacts and dependencies from their investments on biodiversity[1], and a further 24% have conducted but not published their assessments.
       
   3. Capacity-building is expanding. A wide range of organisations[2] have begun rolling out executive education and training programmes on nature-related assessment and risk management for asset owners and asset managers.

Interoperability with other reporting 

Interoperability remains a central TNFD priority. The Report notes the TNFD’s efforts to develop joint approaches, guidance, and map overlaps, with a wide range of reporting initiatives:

1. ISSB. In April 2025, the TNFD and IFRS Foundation signed a Memorandum of Understanding to deepen the TNFD’s support for ISSB’s research project on Biodiversity, Ecosystems and Ecosystem Services (BEES), and enhancements of the SASB Standards.
    
2. GRI. The TNFD and GRI have developed a guidance document and correspondence table to help GRI reporters globally align with the TNFD recommendations and vice versa.
    
3. EFRAG. The TNFD and EFRAG have jointly published a mapping of the correspondence between the ESRS and the TNFD’s recommended disclosures and metrics. This assessment highlights that all 14 TNFD recommended disclosures are reflected in the ESRS.
    
4. ISO. In May 2025, the TNFD proposed that the ISO consider embedding the TNFD’s LEAP approach into the standard on biodiversity that the ISO is developing.

Putting TNFD into practice

The TNFD’s Asking Better Questions on Nature series is designed to help boards and executives surface the decision‑useful information they need on dependencies, impacts, risks and opportunities. The series aims to help integrate nature into governance, strategy, risk management, capital allocation and CSR. It sets out 12 questions directors can use with themselves and with management, alongside the analysis that boards should expect to see to discharge their fiduciary duties.

For companies, this can mean identifying material nature impacts and opportunities across operations and value chains in the first instance; piloting a subset of TNFD metrics; and planning integration with climate reporting.

For investors, it can mean engaging with portfolio companies on governance, risk management and metrics; requesting TNFD‑aligned disclosures; and building internal capacity to assess nature dependencies and impacts.

What’s next

At COP30 in Brazil this November, TNFD plans to release recommendations to upgrade the accessibility and quality of nature data, with a focus on location‑based datasets, sector‑specific metrics and value‑chain coverage. TNFD is also exploring how artificial intelligence can support nature reporting.

More generally, the TNFD’s priorities to look out for include: (i) deepening collaboration with standard setters, reporting platforms and market initiatives; (ii) addressing measurement and data challenges to enable more quantitative disclosure; (iii) developing additional guidance for priority sectors and financial institutions; and (iv) expanding market engagement and capability building. 

[1] ShareAction’s Point of No Returns 2025 analysis

[2] Including the PRI, Finance for Biodiversity Foundation (FfBF), the Institutional Investor Group on Climate Change (IIGCC), Accounting for Sustainability (A4S) and the International Forum on Sovereign Wealth Funds