Read more in the July 12 edition of Invert Insights.
At this year’s London Climate Action Week, the The Taskforce on Nature-related Financial Disclosures (TNFD) announced 96 new organizations had signed up to use its corporate reporting recommendations since January 2024.
Representing a 30% increase, the total number of companies already committed to disclose their material nature-related issues to investors and other stakeholders based on the TNFD recommendations is now 416. These organizations have signaled 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.
Representing 50 jurisdictions and 80% of SICS sectors, these publicly-listed companies represent over US$6 trillion in market capitalization, an increase of 50% since the TNFD’s Early Adopter announcement in January.
Notable new adopters include industry leaders LGIM, Generation Investment Management, MUFG Asset Management, Volvo, Ricoh, China Mengniu Dairy Ltd and Acciona.
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 organizations 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”.
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💡 Diverse participation from global organizations of varying sizes and industries shows the appetite for meaningful, organized participation on corporate climate action.
💡 This increase in new participating organizations shows that the TNFD’s mission to spark action to conserve and restore nature is a critical global priority that is on it’s way to being successful.
💡 The TNFD aims to provide decision makers in business and capital markets with better quality information through corporate reporting on nature that improves enterprise and portfolio risk management. It’s this robust information on nature-related issues that allows businesses to incorporate nature-related risks and opportunities into their strategic planning, risk management and asset allocation decisions. Better information in the hands of investors and other capital providers can help shift the flow of global capital to more positive outcomes for nature and society.
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