Putting TNFD to work: Insights from early adopters
This report analyses how early adopters are implementing the TNFD framework, highlighting integration with climate disclosures, flexible use of the LEAP approach, and application of data tools. Insights show how businesses align nature-related risks with strategy and reporting, with regional uptake led by Asia Pacific and Europe.
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OVERVIEW
Introduction
The number of early adopters of the Taskforce on Nature-related Financial Disclosures (TNFD) framework rose significantly in 2024, from 320 in January to 502 by October. These organisations represent approximately US$6.5 trillion in market capitalisation and US$17.7 trillion in assets under management. The majority are based in Asia Pacific (47%) and Europe (36%).
Early adopters are expected to release numerous inaugural TNFD-aligned disclosures in 2025. These disclosures show how the TNFD framework is being adapted to specific industry and regional contexts. ISS-Corporate reviewed these disclosures to identify common practices and key themes.
TNFD overview
The TNFD recommendations provide a framework for companies to assess and disclose nature-related dependencies, impacts, risks, and opportunities. It aligns with existing sustainability standards including IFRS S1 and S2 and the SASB framework.
A core feature is the LEAP (Locate, Evaluate, Assess, Prepare) approach. This structured method helps companies integrate nature-related issues into risk management and strategy.
Climate and nature as interconnected issues
Early adopters widely recognise the interdependence between climate and nature. Impacts such as water scarcity, land degradation, and the loss of ecosystem services like erosion control are seen as material risks.
These relationships are being reflected in integrated risk assessments. One food and beverage company mapped nature and climate risks across its value chain, linking product and packaging impacts to location-specific climate and nature dependencies.
Integrated reporting
Many early adopters are building on their experience with the TCFD framework to streamline TNFD reporting. This includes issuing joint reports or combining TNFD disclosures within broader sustainability reports.
This integration supports improved understanding of materiality and better-targeted mitigation strategies. One chemicals company identified that most nature impacts came from a single business unit in the upstream supply chain. This led to operational changes such as revising manufacturing processes and verifying raw material sourcing risks.
Flexible applications of LEAP
The LEAP framework is applied flexibly based on business needs. One food and beverage company used a region-by-region approach, prioritising low biodiversity integrity areas and high water-risk zones. It focused assessments on soil, water, and deforestation.
Another company adopted an enterprise-wide model, evaluating all global processing sites with a focus on biodiversity sensitivity. This approach enabled site-level mitigation planning and identification of ecosystem service dependencies.
Enhancement through data tools
Early adopters frequently used data tools to support LEAP implementation. TNFD references a catalogue of over 200 tools. Commonly used tools include:
- Aqueduct Water Risk Atlas for mapping water-related risks.
- Integrated Biodiversity Assessment Tool (IBAT) for spatial biodiversity data.
- WWF’s Biodiversity Risk Filter and ENCORE for evaluating nature dependencies and risks.
Tools are most often applied in the Locate, Evaluate, and Assess steps. They assist companies in identifying sensitive regions, quantifying exposure, and planning responses.
Supporting resources
To aid implementation, TNFD has released several resources. The Learning Lab launched in February 2025 as an open-access platform with modules, webinars, and videos.
In January 2025, final sector guidance was published for four industries, bringing total sector-specific guidance to 13. Draft guidance exists for three additional sectors.
October 2024 saw the release of guidance on Nature Transition Plans, aimed at helping companies act on LEAP findings. Testing of this guidance is expected in 2025.
Global relevance
TNFD is establishing itself as the leading framework for nature-related disclosures. It has aligned with the European Sustainability Reporting Standards through a mapping exercise with EFRAG.
In April 2025, TNFD signed a Memorandum of Understanding with the IFRS Foundation. This could support future integration of TNFD into a potential biodiversity standard, reinforcing its position as a globally recognised disclosure framework.
