The total number of companies and financial institutions having pledged to start voluntary reporting in line with Taskforce on Nature-related Financial Disclosures (TNFD) recommendations now stands at 502. This marks a 57% increase since the first adopters were announced in January. Committed firms include publicly listed companies representing more than US$6.5 trillion in market capitalisation – an 8% increase since London Climate Action Week (LCAW) in late June – spread across 54 jurisdictions, including 25 emerging markets. In addition, 129 financial institutions are now registered as TNFD adopters, representing US$17.7 trillion in AUM – an 11% increase since LCAW – including 25% of the world’s systemically important banks. Notable new adopters include abrdn, KPMG and Manulife Investment Management as well as a diverse range of companies across sectors, who have all signalled their intention to begin adopting TNFD recommendations and publishing aligned disclosures as part of their annual corporate reporting for financial year 2024 or 2025. “The speed of voluntary market adoption over the past year since the release of the TNFD recommendations highlights the growing appreciation across sectors and geographies that nature is a material risk issue for their business and a new source of opportunity and potential competitive advantage,” said TNFD Co-chair David Craig. “We have seen significant uptake across sectors – in particular from asset managers, as they address climate and nature risk in their portfolios. The growth in these assessments and public disclosures is helping direct financial flows towards more resilient business models and nature-positive outcomes.” The TNFD’s approach to assessment and disclosure is aligned with the Global Biodiversity Framework, and specifically Target 15 – calling on governments to introduce requirements by 2030 for corporate reporting on nature-related dependencies, impacts and risks. “Today’s announcement demonstrates that the market is already moving quickly to embrace better nature-related risk management and disclosure aligned with global policy goals,” the TNFD said.
