Taskforce on Nature-related Financial Disclosures (TNFD) Highlights Rapid Growth in Nature-Related Reporting and Investor Demand, ESG Broadcast shares key takeaways
Regulatory Extract
On September 25, 2025 the Taskforce on Nature-related Financial Disclosures (TNFD) released its first status report, highlighting significant progress in market uptake of nature-related reporting. The report marked two years since the publication of the TNFD recommendations in September 2023 and showed how companies and investors had begun integrating nature considerations into financial and corporate decision-making.
As of July 2025, more than 1,800 organisations had joined the TNFD Forum, reflecting a growing interest across sectors and geographies. Among them, 620 organisations representing over USD 20 trillion in assets under management and USD 7 trillion in market capitalisation publicly committed to align with TNFD recommendations. Over 500 first and second-generation TNFD-aligned reports had already been published, with companies disclosing on an average of 8.7 out of 14 recommended indicators.
Survey findings showed 78% of respondents integrating nature-related disclosures with climate reporting, suggesting a trend towards consolidated sustainability reporting. Around 63% of respondents believed nature-related risks and opportunities were as significant as, or more significant than, climate-related risks for their financial future. Asset managers and owners, representing a large share of global capital, expressed demand for dedicated standards on nature based on TNFD recommendations, with 77% calling for a formal standard to emerge.
Regional and sectoral analysis revealed early leadership from Asia, particularly Japan, followed by Europe and Latin America. Financial institutions, however, faced challenges due to reliance on client-level data, while corporates in sectors such as agriculture, mining, and energy demonstrated greater readiness to disclose. Progress was strongest in governance and risk management disclosures, while metrics and targets proved more difficult due to data limitations.
“TNFD’s first 2025 Status Report is a welcome moment of hope, showing that assessment and disclosures of nature-related issues is progressing at a surprising pace. Despite current politics creating a challenging landscape, the findings of the TNFD 2025 Status Report indicate that business and finance are not disregarding nature. To the contrary, the work of understanding nature-related issues is progressing, and market participants are realising and acting upon the fact that the resilience of their business relies upon the resilience of nature.” Said Razan Al Mubarak, Co-Chair, TNFD
The report also noted that central banks and regulators, including the European Union, India, and China, had integrated elements of TNFD into evolving disclosure frameworks. Collaborations with the ISSB, GRI, and other standard setters showed efforts to build a globally consistent baseline for nature-related reporting. In addition, initiatives like Nature Action 100 and the PRI Spring Initiative mobilised institutional investors managing trillions in assets to engage companies on biodiversity and ecosystem risks.
Strategic significance lies in equipping companies and investors with the ability to integrate nature into risk management, capital allocation, and long-term value creation.While momentum is evident, the TNFD stresses that challenges remains in building data infrastructure, sector-specific guidance, and consistent measurement methods. New technologies such as geospatial tools and eDNA analysis are expected to accelerate progress in nature data collection.
