Taskforce on Nature-related Financial Disclosure (TNFD) – What it means for business

Sustainable business must now move beyond reducing harm to actively restoring nature. The Taskforce on Nature-related Financial Disclosures (TNFD) provides a framework to help organisations embed nature into decision-making, assess and report dependencies, impacts, risks and opportunities. A sustainability strategy anchored in nature positive thinking helps manage exposure to biodiversity loss, supports regenerative practice and future proof operations.

The TNFD was formally launched in 2021 with support from the G20, as a market-led initiative to mirror for nature what the TCFD (Task Force on Climate-related Financial Disclosures) achieved for climate. Over two years the TNFD developed its recommendations through multiple beta versions, engaging with hundreds of stakeholders across business, finance, civil society before publishing the final recommendations in September 2023.

The framework aims to provide a structured yet flexible architecture to integrate nature-related issues into governance, strategy, risk and impact management. Supporting guidance such as the LEAP (Locate, Evaluate, Assess, Prepare) approach helps organisations carry out their own nature assessments that will help understand and manage impacts. Sector specific guidance is now being rolled out and the TNFD has formalised a collaboration with the IFRS Foundation, signalling that TNFD’s recommendations may feed into future global disclosure standards.

Maintaining momentum

While TNFD is currently a voluntary framework, momentum is building quickly, and it is already being referenced in international policy discussions and in alignment with global disclosure systems such as the ISSB standards.

In the UK, TNFD is not mandatory, but the government has confirmed it is exploring how to bring nature-related reporting into future disclosure requirements alongside climate. Large listed companies and financial institutions are the most likely to face early regulatory obligations, mirroring the path taken with TCFD. For now, more than 500 organisations across 54 countries have voluntarily signed up as TNFD adopters, including major corporations and financial institutions managing trillions of dollars in assets. This voluntary uptake demonstrates that many businesses see clear strategic value in getting ahead of regulation and signalling to investors that they are ready to integrate nature into governance, risk management and strategy.

To track implementation, TNFD launched its first Status Report in September 2025. Findings include:

• • • • Organisations committed to TNFD-aligned reporting span 62 different industry sectors. These include 129 financial institutions managing $17.7 trillion of assets
      • Publicly listed adopters together represent $6.5 trillion in market capitalisation, showing that nature is firmly entering mainstream markets.
      • In TNFD’s global survey, 63% of respondents said nature-related issues are as significant or more significant than climate for their business.
      • 78% of respondents have integrated climate and nature reporting into a combined narrative.
      • Respondents reported that TNFD is helping them systematise nature thinking, build internal momentum, and communicate more effectively with investors and stakeholders.

Accelerating progress

The TNFD is clearly gaining traction, but many businesses still fail to understand the importance of treating nature as a key stakeholder and reporting on impacts. The United Nations has reported that three quarters of land environments and two thirds of marine environments have already been significantly altered by human activity, with around one million species now facing extinction. Wylde’s eBook The Business of Biodiversity explores the nature crisis in more detail.

Human activity is destroying habitats, polluting ecosystems and accelerating climate change at a rate that threatens the stability of life on Earth. Since 1990 an estimated 420 million hectares of forest have been lost, largely through conversion to agriculture, and invasive species are disrupting delicate ecological balances across the globe. The scale of decline is unprecedented, and it is already destabilising the systems on which we all depend.

Businesses are deeply tied to these systems. soils, energy, raw materials and natural climate regulation. The TTCFD has estimated that more than half of global economic value generation, around $44 trillion, is moderately or highly dependent on nature. Whether through direct reliance on crops, timber, minerals and clean water, or indirect reliance on pollination, flood control and waste absorption, every company has nature embedded in its operating model. Biodiversity is not a marginal concern but the foundation of business resilience.

The consequences of biodiversity loss for business are profound. As ecosystems degrade the services they provide become less reliable. That leads to resource scarcity, higher costs, disrupted supply chains and more volatile markets. It also creates growing exposure to regulatory and investor scrutiny as biodiversity is increasingly treated as a financial risk on a par with climate. Companies that continue to treat nature as an external issue risk eroding their competitiveness and resilience. Those that act now to integrate biodiversity into their strategies will be better placed to secure their long term future.

Understanding and reporting on impacts

Ignoring nature is not an option. A sustainability strategy that is nature positive offers both resilience and opportunity. Businesses that embed biodiversity within their reporting and decision making enjoy multiple benefits:

• Credibility with investors and stakeholders: TNFD aligned reporting demonstrates foresight and strong governance.
• Improved risk management: The framework helps uncover blind spots and strengthen resilience.
• Access to capital: Investors are already demanding nature disclosure, and transparent firms may benefit from better finance terms.
• Innovation and differentiation: TNFD encourages regenerative business models and creative supply chain solutions.
• Preparedness for regulation: Voluntary action today avoids rushed compliance tomorrow.
• Enhanced reputation: Stakeholders increasingly value transparency and accountability on nature.

At Wylde Connections we can support organisations at every stage of their TNFD journey. Our work begins with value chain mapping to understand current maturity and dependencies. We then use the TNFD LEAP framework to guide nature assessments and prioritise action. We integrate these insights into materiality processes and sustainability strategies, ensuring nature is central rather than peripheral. We also provide support in setting metrics, preparing disclosures, building staff capability and setting up monitoring systems.

In short, we help organisations move from uncertainty to structured action. Book a Discovery Call and talk to our team of experts about embedding nature positivity into your sustainability strategy.