Skip to main content

A Guide to the Taskforce on Nature-related Financial Disclosures (TNFD)

A Guide to the Taskforce on Nature-related Financial Disclosures (TNFD)


Reading Time: ~10 minutes

Key Takeaway: Understanding and using “A Guide to the Taskforce on Nature-related Financial Disclosures (TNFD)” enables your organisation to identify nature-related risks and opportunities, and report them credibly to stakeholders.

Introduction

Problem. Many organisations know they impact nature and depend on it—but struggle to measure, manage and report those links clearly.
Agitation. If you can’t show how nature fits into your business risks, strategy and value creation, you face reputational, regulatory and operational risks that often go unnoticed.
Solution. That’s why we’re offering “A Guide to the Taskforce on Nature-related Financial Disclosures (TNFD)”. In simple terms, you’ll learn how to use the TNFD framework to make nature-related issues part of your decision-making and disclosures—no fluff, just practical steps.

Summary Box:

  • What the TNFD is and why it matters

  • The four pillars of the TNFD framework

  • How to start your TNFD adoption journey

  • Key metrics & disclosure tips

  • How to align nature-disclosure with your business strategy

What is the TNFD and why it matters

In this section we’ll walk through “A Guide to the Taskforce on Nature-related Financial Disclosures (TNFD)” using plain language.

The basics

  • The Taskforce on Nature‑related Financial Disclosures (TNFD) is a global initiative that provides a risk-management and disclosure framework for nature-related dependencies, impacts, risks and opportunities. tnfd.global+2IBM+2

  • It’s designed for organisations of all sizes and sectors, so that nature is treated alongside climate and other sustainability risks. tnfd.global+1

  • The TNFD’s work is voluntary for now, but it is increasingly referenced by investors, regulators and standard-setters. IBM+1

Why it matters for your business

  • Nature-related risks (like resource scarcity, ecosystem degradation or regulatory change) can affect supply chains, operations, reputation and cost. World Economic Forum

  • Disclosure is becoming important: stakeholders are asking for credible information about how you depend on and impact nature—and what you are doing about it. whitecase.com+1

  • By following the TNFD framework you can turn nature-related issues from a vague “maybe” into structured data and process, which strengthens your strategy, governance and reporting.

The TNFD Framework — key elements

Here’s how “A Guide to the Taskforce on Nature-related Financial Disclosures (TNFD)” sets you up for disclosure and action.

Four pillars

The TNFD structure mirrors similar frameworks (like for climate) and uses four core pillars: IBM

  • Governance: How your organisation monitors and manages nature-related issues.

  • Strategy: How nature-related dependencies, impacts, risks and opportunities affect your business model and planning.

  • Risk & impact management: How you identify, assess, prioritize and monitor nature-related issues.

  • Metrics & targets: What you measure, what you aim to improve, and how you report progress.

General requirements

In addition to the pillars, the TNFD includes general requirements such as: IBM+1

  • Defining scope and materiality (which nature-issues matter for you)

  • Integrating nature-related information with other sustainability disclosures

  • Considering location, time-horizon, stakeholder engagement, Indigenous Peoples and communities.

Getting started

The TNFD offers a “Getting Started” guide to help organisations begin their journey. Key steps include: tnfd.global+1

  • Explore the TNFD additional guidance, tools and resources

  • Join discussions or access forums for peer learning

  • Assess where you currently stand, and set a roadmap for adoption

  • Begin gathering data, understanding dependencies and impacts

How to use the TNFD framework in practice

This section walks you through practical steps based on “A Guide to the Taskforce on Nature-related Financial Disclosures (TNFD)”.

Step 1: Scope and materiality

  • Map your operations, supply chain, value chain and locations to see where nature-dependencies and impacts exist.

  • Use TNFD guidance to identify material nature-related issues: where does your business rely on forests, water, ecosystems, biodiversity?

  • Define what you will disclose: what is relevant, what is significant for your business and stakeholders.

Step 2: Governance and responsibility

  • Assign senior-level oversight for nature-related issues (board, sustainability committee).

  • Define roles and resources: who collects data, who assesses risks, who monitors action.

  • Link nature-disclosure to your organisation’s governance structure.

Step 3: Strategy alignment

  • Consider how nature-issues affect your strategy and business model: e.g., water scarcity, land-use change, biodiversity loss.

  • Embed nature into risk appetite, investment decisions, innovation and value-creation opportunities.

  • Plan for nature-positive outcomes, not just risk mitigation.

Step 4: Risk & impact management

  • Using the TNFD’s LEAP approach (Locate, Evaluate, Assess, Prepare) helps structure your assessment. tnfd.global+1

    • Locate: Identify where nature is relevant in your business.

    • Evaluate: Look at dependencies and impacts—what you rely on, what you affect.

    • Assess: Prioritise nature-related risks and opportunities based on likelihood and magnitude.

    • Prepare: Establish responses, actions, targets and disclosures.

  • Use these to build action plans and monitoring mechanisms.

Step 5: Metrics & targets

  • Use TNFD’s core global metrics, plus sector- or value-chain-specific metrics. tnfd.global+1

  • Set targets: e.g., reduce impact on biodiversity, increase preservation area, reduce ecosystem dependency.

  • Ensure metrics and targets are aligned with your strategy and material issues.

Step 6: Reporting & disclosure

  • Produce disclosures aligned with the TNFD recommended disclosures (14 recommended disclosures) across the four pillars. tnfd.global

  • Be transparent: show both positive action and gaps/areas for improvement.

  • Link nature disclosures to other ESG disclosures: climate, governance, value chain.

  • Use the data as a basis for stakeholder engagement, investor communication and certification or assurance.

Why adopting TNFD matters for your organisation

Here are the key benefits of applying “A Guide to the Taskforce on Nature-related Financial Disclosures (TNFD)”.

  • Better risk management: You uncover nature-related risks (e.g., resource dependency, supply chain disruption) before they hit you.

  • Strategic insight: You turn dependencies and impacts into opportunities (e.g., nature-positive products, ecosystem services, sustainable sourcing).

  • Stakeholder trust: Investors, regulators and partners increasingly expect credible nature-related disclosure—TNFD helps meet that expectation.

  • Competitive advantage: Early adopters of nature-disclosure frameworks can differentiate and reduce cost of capital, build resilience.

  • Alignment with global frameworks: TNFD aligns with other standards (Global Reporting Initiative, International Sustainability Standards Board) and biodiversity goals (Kunming‑Montreal Global Biodiversity Framework) — helping you future-proof your disclosures. tnfd.global+1

Challenges & how to overcome them

No roadmap is without bumps. Here are common challenges you may face in implementing “A Guide to the Taskforce on Nature-related Financial Disclosures (TNFD)”, and how to handle them.

  • Data gaps: Nature-related dependencies and impacts can be complex and outside your usual reporting systems.

    • Solution: Start with high-impact areas, use proxy data, gradually build data systems.

  • Scope complexity: Value chains, multiple geographies and ecosystems make scoping tricky.

    • Solution: Use the LEAP approach, involve cross-functional teams, prioritise major dependencies.

  • Internal alignment: Nature may not yet be embedded in your governance, operations or strategy.

    • Solution: Raise awareness, embed nature in board/committee items, link to existing ESG processes.

  • Metrics uncertainty: Metrics for nature may be less mature than for climate.

    • Solution: Use TNFD’s core metrics + sector guidance, document assumptions, update as frameworks evolve.

  • Disclosing honestly: It may feel uncomfortable to disclose gaps or lack of progress.

    • Solution: Transparency builds trust; set realistic targets, report progress and next steps.

Case study snapshots

Here are brief examples of organisations using the insights from “A Guide to the Taskforce on Nature-related Financial Disclosures (TNFD)” (based on available reporting and guidance).

  • A manufacturing company identified water scarcity and land-use change in its supply chain as key dependencies using the TNFD LEAP approach, then set a target to reduce upstream water-usage by 20 % by 2030.

  • A financial institution used the TNFD sector guidance for banks to assess exposure to nature-related risks across its loan portfolio, and integrated nature-criteria into its lending policy.

  • A construction and real-estate firm aligned with TNFD sector guidance (engineering/construction & real estate) released in early 2025, built nature-disclosure into its investor reporting and used it to win green-investment support. tnfd.global

Practical checklist

Here’s a quick checklist you can use as you apply “A Guide to the Taskforce on Nature-related Financial Disclosures (TNFD)” in your organisation:

  • Board/senior management awareness of nature-related issues

  • Nature-related scope defined (operations, value chain, geography)

  • Materiality assessment for nature-dependencies and impacts

  • Governance roles defined for nature-related management

  • Strategy incorporation: nature risks & opportunities mapped

  • LEAP assessment completed (Locate → Evaluate → Assess → Prepare)

  • Key metrics selected and baseline set

  • Targets established for nature-related performance

  • Systems for data collection and tracking implemented

  • Disclosure plan aligned with TNFD’s four pillars and 14 recommended disclosures

  • Communication plan for stakeholders (investors, regulators, supply chain)

  • Review and continuous improvement process in place

Final thoughts

And that covers “A Guide to the Taskforce on Nature-related Financial Disclosures (TNFD)”: why it matters, how it works, and how you can take practical steps to embed nature into your governance, strategy, risk management and reporting. Taking this journey positions your organisation to not just talk about nature but to take measurable action—and to share that with your stakeholders.

If you're ready to bring nature-related disclosure into your organisation and align with the TNFD framework, let’s talk. WhatsApp or call 013 300 6284 now and we’ll walk you through how to get started and integrate these practices into your business planning.

Comments

Post a Comment

Popular posts from this blog

The Ultimate Guide to the EECA 2024: What Every Malaysian Business Needs to Know.

      https://www.techikara.com/ The Ultimate Guide to the EECA 2024: What Every Malaysian Business Needs to Know Estimated reading time: 10 minutes   K ey takeaways:   ●       New Regulations for Major Energy Users: The Energy Efficiency and Conservation Act (EECA) 2024 now requires businesses in Peninsular Malaysia and Labuan that use 21,600 gigajoules (GJ) or more of energy annually to comply with new regulations. This includes appointing a Registered Energy Manager (REM), implementing a formal Energy Management System (EnMS), and conducting regular energy audits. ●       Mandatory Requirements for Office Buildings: Initially, the Act targets office buildings with a Gross Floor Area (GFA) of 8,000 square meters and above. Owners or managers of these buildings must apply for and display an official energy intensity label, which rates the building's ef...
Post a Comment
Read more

How to Develop an Effective Energy Management Strategy for Your Company

  https://www.techikara.com/ How to Develop an Effective Energy Management Strategy for Your Company Reading Time: Approximately 7-8 minutes Key Takeaway: As a corporate leader or facility manager in Malaysia, you're facing increasing energy costs and, critically, new compliance requirements under the Energy Efficiency and Conservation Act (EECA) 2024. Simply reacting to high bills or fixing one-off problems isn't enough anymore. What you need is a structured, long-term plan to control your energy use – in other words, an effective energy management strategy. But where do you start? How do you move beyond quick fixes to truly embed energy efficiency into your company's DNA? This article will guide you on How to Develop an Effective Energy Management Strategy for Your Company, showing you how a systematic approach not only reduces costs and strengthens sustainability efforts but also ensures you meet your legal obligations and stay competitive in Malaysia's evolvin...
Post a Comment
Read more

Energy Efficiency Improvement Plan

What is an Energy Efficiency Improvement Plan? An Energy Efficiency Improvement Plan is a strategic framework designed to reduce energy consumption, lower costs, and enhance sustainability. It involves assessing current energy usage, identifying inefficiencies, and implementing targeted improvements. Key Steps in Developing an Energy Efficiency Improvement Plan: Conduct an Energy Audit:  Assess current energy consumption patterns to identify areas of inefficiency. Set Energy Efficiency Goals:  Establish clear, measurable objectives for reducing energy use and improving sustainability. Identify and Implement Solutions:  Develop and execute strategies such as upgrading to energy-efficient equipment, optimizing HVAC systems, and automating energy management. Monitor and Evaluate Performance:  Track energy usage over time, analyze results, and make necessary adjustments for continuous improvement. Employee Engagement and Training:  Educate staff on energy-saving pra...
Post a Comment
Read more