TNFD Framework Sets New Direction for Corporate Nature Disclosure Beyond Climate

The Taskforce for Nature-related Financial Disclosures published its recommended disclosure framework in September 2023, providing companies with a structured approach to assess and report impacts across water, land, biodiversity and ecosystems. CDP has committed to aligning with the TNFD, positioning itself as a central platform for both climate and nature reporting.

The TNFD's LEAP framework — covering Locate, Evaluate, Assess and Prepare — guides companies through identifying all environmental dependencies, impacts, risks and opportunities across their value chains. Built on the Natural Capital Protocol and Capitals Coalition's ACT-D framework, LEAP produces disclosures aligned with the TNFD's 14 recommended data points, which include the 11 TCFD recommendations plus three additional metrics specific to nature. This common structure enables comparability across climate and nature disclosures.

Nature disclosure faces structural challenges that climate reporting has overcome over two decades: no single global temperature-equivalent target, place-sensitive impacts that require local data, 23 GBF targets compared to one Paris Agreement goal, and persistent global data gaps. However, the signing of the Global Biodiversity Framework in Montreal in 2022, the SBTN's first corporate nature targets and TNFD's recommendations are collectively replicating the architecture that drove progress on climate — from international agreement to science-based targets to disclosure standards to legislation.

The European Sustainability Reporting Standards, which include biodiversity reporting requirements under ESRS E4, represent the most advanced mandatory nature disclosure framework in any jurisdiction. The ISSB has also announced intent to develop a nature standard covering material biodiversity impacts and dependencies. CDP's 2023 commitment to align with TNFD is part of a broader strategy to serve as a one-stop disclosure platform, harmonising voluntary frameworks, standards and emerging regulatory requirements across climate, water, forests and biodiversity.

Key figure — 23 GBF targets compared to one Paris Agreement goal