The Taskforce on Nature-related Financial Disclosures (TNFD) has seen a 30% increase in adopters of its corporate reporting recommendations since January, with an additional 96 organisations joining the initative, bringing the total number of companies already committed to disclosing their material nature-related issues to investors and other stakeholders based on the TNFD recommendations to 416.

Drawn from more than 50 jurisdictions, the publicly-listed companies represent over $6trn in market capitalisation, an increase of 50% since the TNFD’s Early Adopter announcement in January.

TNFD said there are now 114 financial institutions registered as adopters, representing $15.9trn in assets under management. Among the most recent adopters are financial institutions Legal & General Investment Management (LGIM), Generation Investment Management and MUFG Asset Management.

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 earlier) or FY2025 outcomes.

TNFD disclosure reports based on 2023 financial year outcomes have already begun appearing in the market less than a year after the release of the Taskforce’s recommendations, it added.

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.”

He said that voluntary uptake of the TNFD recommendations is the “best way to meet these shifting expectations and the best way to meet new regulatory requirements” such as the Corporate Sustainability Reporting Directive (CSRD).

Additional guidance

The Taskforce also announced the launch of additional guidance covering real economy sectors, for financial institutions, and on value chain.

The Additional Sector Guidance covers eight real economy sectors such as aquaculture, biotechnology and pharmaceuticals, chemicals, food and agriculture, forestry and paper, oil and gas, among others. This guidance includes recommended sector-specific metrics for disclosure in line with the TNFD disclosure recommendations published in September 2023.

The Additional Guidance for Financial Institutions includes guidance on the TNFD recommended disclosures and disclosure metrics for banks, re/insurance companies, asset managers and owners, and development finance institutions.

The Additional Guidance on value chains details how organisations can approach analysis of their upstream and downstream value chains. It outlines value chains characteristics that can create challenges assessing nature-related issues and how organisations can approach these issues when applying the TNFD’s LEAP approach.

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