The Taskforce on Nature-related Financial Disclosures (TNFD) has released a new evidence review on how nature-related risks can translate into financially material outcomes for corporates and financial institutions, alongside a set of corporate case studies developed with the Global Reporting Initiative and final sector guidance for water utilities and services. The evidence review, co-authored with the University of Oxford’s Environmental Change Institute and Global Canopy, synthesises over 600 pieces of evidence from 360 sources and interviews with corporates and financial institutions, linking nature-related dependencies and impacts to effects on cash flows, cost of capital and access to capital. It concludes that nature-related risks are not yet consistently assessed or disclosed as financially material, but that evidence of financial effects is extensive, and it points to integrated risk assessment approaches, improved data availability and scenario analysis as key enablers. The seven GRI-TNFD case studies illustrate how companies are identifying risks and opportunities arising from dependencies and impacts on nature using the GRI materiality approach and the TNFD LEAP approach, with dependencies highlighted as particularly valuable to risk and opportunity assessment. Separately, the final water utilities and services guidance sets sector-specific considerations for applying the TNFD LEAP approach and recommends sector-specific disclosure metrics; it is intended to apply across the water cycle and across an organisation’s activities, and brings TNFD’s sector guidance documents to 16, covering 50% of SICS industries with final and draft guidance. A public consultation is open until 31 December 2025 to gather additional evidence and feedback on the accompanying nature-related financial risks database. TNFD also flagged further work on nature-related opportunities, including a call for evidence to source case studies with a strong business case.

Original source View in tracker