The TNFD (Taskforce on Nature related Financial Disclosures) has announced the launch of new sector-specific guidance to support the assessment, management and disclosure of nature-related issues by companies in the following industries:
It marks the second such release, following the launch of materials to support nine other sectors including metals & mining, finance, food & agriculture, and oil & gas. The total number of sectors for which the TNFD provides final and draft guidance now covers 50% of the SICS® (Standard Industrial Classification) industries[i].
The TNFD offers a collection of disclosure suggestions and guidelines for organisations to report and take action on changing nature-related dependencies, impacts, risks, and opportunities. The framework for managing and disclosing nature-related risk and opportunity was finalised and released in 2023 during NYC Climate Week, following a consultation period which saw more than 500 feedback submissions considered[ii].
The TNFD seeks to promote and encourage robust environmental reporting by businesses, alongside integration of nature-related strategies aligned to science-based targets, and since its launch in 2021, more than 1,600 organisations have stated their support. This includes over 500 organisations representing more than $17 trillion in assets under management (AUM) who are committed to reporting their nature-related issues aligned with the TNFD recommendations published in September 2023.
The latest guidance will be open for market feedback and consultation until 4th April 2025, then, based on feedback received, the Taskforce plans to issue final sector guidance for fishing, marine transportation & cruise lines and water utilities & services in June 2025.
ZCA recently identified climate resilience and nature-based solutions as one of our top trends for 2025, with the topic high on the agenda for the coming year. Climate resilience is the ability to mitigate and respond to the impacts of climate change, and it is gaining traction as an essential component of business sustainability plans. It includes the use of nature-based solutions and the improvement of biodiversity.
On an international scale talks on biodiversity are set to resume at the second instalment of the COP16 biodiversity summit, taking place in February 2025. At the summit countries will discuss how to implement the goal to protect 30% of Earth's land and seas by 2030, a target which was agreed in December 2022. Nature is also expected to be high on the agenda at COP30 taking place in Brazil this November.
2025 will see businesses ramp up investments in ecosystem restoration and conservation projects driven by the need to address climate change, biodiversity loss and land degradation. Regulation is set to be a driver too with the EU’s CSRD (Corporate Sustainability Reporting Directive), requiring thousands of companies to report on environmental topics such as biodiversity.
Companies are set to increasingly integrate nature-based solution and biodiversity programmes into their operations, this will be crucial in harnessing nature to reduce emissions, restore degraded landscapes and halt biodiversity loss. In a positive sign, this is already beginning - at the end of 2024 ZCA reported that three brands; Kering, Holcim, and GSK, had become the first in the world to adopt science-based nature targets[iii].
Action is crucial, according to the UN of the 8.7mn species of animals and plants on the planet, more than 1mn are in danger of being wiped out. Yet more than half the world’s economic output — about $58 trillion of global GDP — is moderately or highly dependent on nature, according to an analysis from PwC[iv] When looking at the UK specifically, The Green Finance Institute estimates that the deterioration of the UK’s natural environment could lead to up to a 12% loss of GDP. This is greater than both the 5% loss in GDP from the 2008 financial crisis, and the estimated loss of 11% due to the Covid-19 pandemic in 2020[v].
Source: ZCA
[i] TNFD issues new sector guidance
[iii] Kering named as the first fashion brand to adopt science-based nature targets
[iv] More than half of global GDP is exposed to material nature risk without immediate action
[v] New guidance to help businesses get ahead of the curve with nature-related impact reporting
Lauren has extensive experience as an analyst and market researcher in the digital technology and travel sectors. She has a background in researching and forecasting emerging technologies, with a particular passion for the Videogames and eSports industries. She joined the Critical Information Group as Head of Reports and Market Research at GRC World Forums, and leads the content and data research team at the Zero Carbon Academy. “What drew me to the academy is the opportunity to add content and commentary around sustainability across a wealth of industries and sectors.”
