TNFD Adoption Surges by 57% as 500+ Organizations Embrace Nature Risk Reporting

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.

The TNFD 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.

A total of 502 organizations from 54 jurisdictions, including 25 emerging markets, have adopted the TNFD framework, representing 62 of the 77 SASB SICS sectors. Among the adopters are publicly listed companies with over $6.5 trillion in market capitalization, as well as 129 financial institutions managing $17.7 trillion in assets, including 25% of the world’s systemically important banks.

Notable new adopters include financial institutions such as abrdn, Banco de Bogotá, and Manulife Investment Management, as well as companies like KPMG, Freeport-McMoRan, Qantas, Morrisons, Sainsbury’s, Jindal Stainless Limited, JSW Group, JA Solar Technology, Mitsubishi Electric Corp, Philips, EDP, Electrobras, Tokyo Electric Power, and Logitech International.

Prabodha Acharya, Chief Sustainability Officer at JSW Group, stated: “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, added: “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, commented: “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.”

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, said: “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.”