Putting TNFD to Work: Insights from Early Adopters

Introduction

The number of companies embracing early adoption of the Taskforce on Nature-related Disclosures (TNFD) framework grew considerably last year, signaling global interest in understanding the risks and opportunities resulting from nature-related impacts and dependencies.

According to the TNFD, the 502 organizations that committed to early adoption by October 2024 (up from 320 organizations in January 2024) represent approximately $6.5 trillion in market capitalization and $17.7 trillion in assets under management. In October 2024, the TNFD released an updated list of Early Adopters; revealing that the majority of them are based in the Asia Pacific region and Europe (47% and 36%, respectively).  

ISS-Corporate analyzed disclosures and assessment metrics from a selection of Early Adopters, including companies participating in the TNFD pilot program, to identify common practices. ISS-Corporate’s analysis revealed several consistent practices, including: 

• Recognition of climate and nature as interconnected issues: Climate change and impacts on ecosystems can have both negative and positive feedback cycles, exacerbating risks or creating new opportunities for companies.  
• Integrated reporting: Companies leveraged integrated risk assessments and reporting practices developed in alignment with the Taskforce on Climate-related Financial Disclosures (TCFD) recommendations and in combination with the TNFD framework.  
• Flexible applications of the Locate, Evaluate, Assess, Prepare (LEAP) approach: Companies tailored the framework to fit their specific operational contexts, industries, and sustainability priorities.  
• Enhancement of nature assessments through data tools: These tools provide actionable insights into environmental dependencies, impacts, and risks, enabling companies to make informed decisions and align their strategies with sustainability goals.