What is the Taskforce on Nature-related Financial Disclosures (TNFD)?
The Taskforce on Nature-related Financial Disclosures (TNFD) is a global market-led initiative which provides a framework for organisations to assess, report and act on their nature-related dependencies, impacts, risks and opportunities.
The aim is to enable a consistent approach for organisations to integrate nature into decision-making and reporting, providing decision-useful information to stakeholders and improving understanding of nature-related hotspots, impacts and priorities for intervention.
The framework is structured around four disclosure pillars (see the key requirements section below) which are consistent with the goals and targets of the Kunming-Montreal Global Biodiversity Framework. The TNFD is increasingly aligned with complementary nature frameworks, including the Science Based Targets Network (SBTN) and the Nature Positive Initiative (NPI), with all three initiatives releasing synchronised updates in October 2026 to strengthen interoperability.
Who does TNFD apply to?
The TNFD is voluntary so there is currently no legal requirement for organisations to comply with the recommendations. However, there is strong government support in the UK and Europe, while it is designed to be broadly interoperable with regulations including the ESRS (European Sustainability Reporting Standards) and CRSD (Corporate Sustainability Reporting Directive).
The TNFD recommendations are designed to be applicable for organisations of all sizes and sectors, and from any geography. The two primary target user groups are corporates and financial institutions but there are a huge range of adopters across industries. Sector specific guidance is available to support with the application of recommendations within priority industries where nature impacts are particularly material, for example, water utilities, beverages, and food and agriculture.
What are the key requirements?
The framework is structured around four disclosure pillars:
- Governance,
- Strategy,
- Risk and impact management,
- Metrics and targets.
Across these pillars, there are 14 recommended disclosures for all sectors. Organisations are encouraged to describe how they oversee and manage nature-related dependencies, impacts, risks, and opportunities; how these affect the organisation’s business model, strategy, and financial planning; how they identify, prioritise and monitor risks and impacts; and, finally, the metrics and targets used to assess material risks and impacts.
A key element of implementation is the LEAP approach (Locate, Evaluate, Assess, Prepare), which provides a structured process for identifying and assessing nature-related issues. The October 2026 release of LEAP 2.0 represents the first update to the methodology since its initial publication in 2023.
Nature footprinting is typically the first step in an organisation’s TNFD journey and supports the Locate and Evaluate stages of LEAP. It assesses how an organisation and its value chain depend on and impact nature and biodiversity, and highlights nature-related hotspots and priorities for action.
What are the risks of not disclosing?
Organisations that do not assess and disclose nature-related risks may face indirect business risks. These can include increased scrutiny from customers and stakeholders, reduced investor confidence, or challenges accessing sustainable finance.
There is also growing awareness of the operational and strategic risks of not managing nature dependencies and risks. Recent droughts and periods of water stress in the UK demonstrate how nature-related issues can rapidly translate into business risks. Organisations that fail to assess their dependencies on natural resources such as water may be exposed to increased operational costs, supply chain disruption, resource shortages and reduced long-term resilience. TNFD provides a framework for identifying and managing these risks before they become material business challenges.
What are the business opportunities?
The TNFD can help organisations develop a stronger understanding of how nature affects business performance and value creation. By identifying nature-related dependencies, impacts, risks and opportunities, organisations can improve resilience, strengthen supply chains, enhance risk management processes and support more informed capital allocation decisions. Many organisations are also using TNFD to demonstrate leadership on biodiversity and nature, responding to growing stakeholder expectations and investor interest.
The framework can support access to sustainable finance, strengthen sustainability reporting, and help organisations identify opportunities linked to ecosystem restoration, resource efficiency, circular business models and nature-positive products and services.
How should organisations prepare?
As organisations begin to explore TNFD-aligned reporting, they will need to understand the nature-related impacts, dependencies, risks and opportunities across their value chain. This is typically done by applying the LEAP approach.
Nature footprinting is often an important first step, aligned to the Locate and Evaluate stages, to establish where their business depends on and impacts nature, including across their upstream and downstream value chains.
Organisations should also explore whether there is any sector specific guidance applicable to their industry to help focus attention on the most material impacts.