TNFD adoption now over 400 organisations and new sector guidance released

  • Date Posted

London, UK | 28 June 2024

The Taskforce on Nature-related Financial Disclosures (TNFD) announced today at London Climate Action Week (LCAW) a 30% increase in adopters of their corporate reporting recommendations since January and released a suite of sector guidance, including recommended sector-specific disclosure metrics, to support reporting by companies and financial institutions.

The additional 96 organisations announced today  brings the total number of companies already committed to disclose their material nature-related issues to investors and other stakeholders based on the TNFD recommendations to 416. Drawn from over 50 jurisdictions and across 62 of 77 SICS sectors, the publicly listed companies represent over US$6 trillion in market capitalisation, an increase of 50% since the TNFD’s Early Adopter announcement in January. 114 financial institutions are now registered as Adopters representing US$15.9 trillion in Assets under Management, including 25% of the world’s systemically important banks (GSIBs).

Among the notable new adopters are financial institutions LGIM, Generation Investment Management and MUFG Asset Management and a diverse range of companies across sectors including global car maker Volvo, Ricoh a leading provider of integrated digital services and print and imaging solutions, dairy products manufacturer China Mengniu Dairy Ltd and Acciona, the Spanish sustainable infrastructure solutions company and TNFD Taskforce Member. These organisations have signalled their intention to begin adopting the TNFD recommendations and publishing TNFD-aligned disclosures as part of their annual corporate reporting for FY2024 (or earlier) or FY2025 outcomes. TNFD disclosure reports based on 2023 financial year outcomes have already begun appearing in the market less than a year after the release of the Taskforce’s recommendations.

David Craig, Co-Chair of the TNFD, said:

“The ongoing uptake of the TNFD’s recommendations is further evidence that the mindset in business and finance is quickly shifting to a recognition that accelerating nature loss is imposing costs and risks on society as a whole as well as to individual business models and capital portfolios. Voluntary uptake now of the TNFD recommendations is the best way to meet these shifting expectations and the best way to meet new regulatory requirements such as CSRD. We are delighted that organisations globally are also using TNFD to prepare for the forthcoming expansion of the global sustainability reporting baseline now that the ISSB has commenced its important work on nature building on the recommendations of the Taskforce”.

Additional Sector Guidance published

Following an 18-month process of iterative development, including extensive consultation with the TNFD’s knowledge partners and market participants, the Taskforce also announced the launch of its first set of Additional Sector Guidance covering eight real economy sectors and Additional Guidance for Financial Institutions. This sector guidance includes recommended sector-specific metrics for disclosure in line with the TNFD disclose recommendations published in September 2023.   Additional Guidance on consideration of nature-related issues across value chains was also released.

The Additional Sector Guidance published today covers the following real economy sectors:  

The Additional Guidance for Financial Institutions also released today includes guidance on the TNFD recommended disclosures and disclosure metrics for banks, re/insurance companies, asset managers and owners, and development finance institutions. 

The Additional Guidance on value chains details how organisations can approach analysis of their upstream and downstream value chains. It outlines value chains characteristics that can create challenges assessing nature-related issues and how organisations can approach these issues when applying the TNFD’s LEAP approach. 

Duncan Wanblad, Chief Executive of Anglo American, said:

“As a Taskforce Member and early adopter of TNFD, and as a member of ICMM, we were pleased to play an active role in the development of the sector guidance for Metals and Mining, representing another important milestone in the progression of TNFD and a significant contribution to the Global Biodiversity Framework’s Target 15. Our sector has an important synergistic association with nature and as a sector we have a great opportunity to be an enabler of positive change bringing together NGO partners, community and regional stakeholders and academic institutions to drive measurable actions on the ground.”

David Blood, Senior Partner, Generation Investment Management, said:

“To achieve a world which protects nature and preserves a habitable climate we must drive the growth of sustainable investing and expand what capital values. We believe the TNFD recommendations and nature-related disclosures will help create the enabling conditions for investors and capital to achieve sustainability outcomes and impact.”

Michelle Gortan, CEO of the Macdoch Foundation, said:

“We welcome the release of the TNFD agriculture sector guidance. This guidance reminds us not only of agriculture’s dependence on nature, but the significant role agriculture plays in supporting and restoring nature. This guidance, including recommended disclosure metrics for the first time, will play a key role in strengthening corporate risk management across the food system and better accountability for impacts on land. We are also pleased to have contributed the deep natural capital accounting expertise of Macdoch Foundation’s Farming for The Future Program to the development of this new resource.”

Green Building Council of Australia CEO, Davina Rooney said:

“By adopting the TNFD recommendations, organisations can integrate nature into their decision-making, supporting the renewal of nature in our cities. This collective commitment is crucial for building a sustainable future”.

TNFD Taskforce Member change

The TNFD also announced an update to its Taskforce members, with City Developments Ltd (CDL) joining. Singapore-based CDL is a leading global real estate company with a network spanning 163 locations in 29 countries and regions. CDL was announced in January as an Early Adopter of the TNFD and is amongst one of the first companies globally to have published its first TNFD-aligned disclosure report. CDL will be represented on the Taskforce by Esther An, Chief Sustainability Officer, who also serves as a member of the Supervisory Board of GRI. Singapore Exchange (SGX Group) will be stepping down from the Taskforce, having served as a member since September 2021.

Esther An, Chief Sustainability Officer, CDL said:

“I am honoured to be joining the Taskforce to promote the reporting of nature-related impact, risks and opportunities for businesses.  CDL takes pride in being the first Singapore company to voluntarily report according to the TNFD Recommendations. TNFD complements CDL’s sustainability reporting framework built up since 2008, anchoring on 2 pillars – financial value and impact on the environment and people.”

Tnfd Lcaw Adopters Infographic Horiztontal

Download the full press release here

ENDS

ABOUT THE TASKFORCE ON NATURE-RELATED FINANCIAL DISCLOSURES (TNFD)

The Taskforce on Nature-related Financial Disclosures (TNFD) is a market-led, science-based and government-backed initiative providing organisations with the tools to act on evolving nature-related issues. It was launched in June 2021 with the support of the G20 Sustainable Finance Working Group and financial support from a number of governments and philanthropic foundations.

 In September 2023, the TNFD published a set of disclosure recommendations and guidance that encourage and enable business and finance to assess, report and act on their nature-related dependencies, impacts, risks and opportunities.

The recommendations and guidance will enable businesses and finance to integrate nature into decision making. The goal of the Taskforce is to support a shift in global financial flows away from nature-negative outcomes and toward nature-positive outcomes, aligned with the Global Biodiversity Framework.

 After two years of design and development in partnership with 20 knowledge partners and the benefit of extensive consultation with market participants and other stakeholders, the TNFD launched its final recommendations in September 2023. With the recommendations released, the Taskforce is now focusing its efforts on encouraging and supporting voluntary market adoption and supporting efforts to address the knowledge, capacity building and data needs of market participants.   

The Taskforce is comprised of 40 senior executives drawn from leading financial institutions, corporates and market service providers, with combined assets of over US$20 trillion. Twenty core knowledge partners from leading science, standards, and data bodies feed into the work of the Taskforce. A group of over 1,500 organisations support the work of the Taskforce as institutional members of the TNFD Forum. Over 400 organisations globally have now committed to start reporting on their nature-related issues aligned to the recommendations of the TNFD.  

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