Hundreds of companies commit to TNFD disclosure by 2026

320 entities pledge to report their exposure to nature-related risks and their impact on ecosystems

Vale, Philip Morris and RWE are among hundreds of companies to have pledged to disclose their nature-related risks and impacts to the markets today.

The Taskforce on Nature-related Financial Disclosures (TNFD) announced that more than 300 organisations will publish information in accordance with its recommendations by 2026.

Big names on the list include furniture giant IKEA, Spanish oil company Repsol and pharmaceutical firms GSK and AstraZeneca.

Altogether, 40 different OECD and emerging markets are covered by the commitments, with public companies representing about $4trn in market capitalisation, and 98 of the MSCI 1500.  

A second round of ‘early adopters’ is expected to be announced at the international biodiversity summit COP16 in October.

Becoming an ‘early adopter’ means the companies will report on at least some of the TNFD’s 14 recommendations alongside their financial disclosures in the 2023, 2024 or 2025 financial years.

Speaking at a press briefing yesterday, Emily McKenzie, the TNFD’s technical director, said the 14 recommendations will “remain stable and steady” but the initiative’s underlying guidance will continue to be updated based on feedback from companies.  

“We’ll be listening and learning from organisations about what they are picking up as they get going with adopting, where they’re getting stuck, where they’re finding solutions,” she said.

Transition plans

TNFD will now turn its attention to transition plans and targets, which are required under the recommendations.

“We have just established a new working group on transition plans and targets, and are in the initial phase of scoping out what TNFD itself can contribute to that large topic,” said McKenzie, adding that “a logical next step for us is to provide some guidance about what best practice for putting nature in transition plans should be”.