TNFD adoption now over 400 organisations and new sector guidance released

The TNFD has announced a 30% increase in adopters, totalling 416 organizations, and released sector-specific guidance to support nature-related financial disclosures, enhancing sustainability reporting and risk management.

The Taskforce on Nature-related Financial Disclosures (TNFD) announced at London Climate Action Week (LCAW) a 30% increase in adopters of their corporate reporting recommendations since January 2024 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 brings the 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. 

Among the notable new adopters are financial institutions LGIM and MUFG Asset Management and a range of companies across sectors including Volvo, Ricoh China Mengniu Dairy Ltd and Acciona 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 FY2025 outcomes. 

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 well as to individual business models and capital portfolios. Voluntary uptake of the TNFD recommendations is the best way to meet shifting expectations and to meet new regulatory requirements such as CSRD”.

Following the 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.   

The Additional Sector Guidance published includes covering the oil and gas sector, chemicals and many more.

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”.

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