TNFD is a voluntary framework. The ISSB is drawing on it to develop nature-related requirements, with an exposure draft for an IFRS Practice Statement expected in October 2026, and CSRD ESRS E4 (Biodiversity) is closely aligned with it. As of September 2026, 802 organizations had committed to TNFD-aligned reporting.

How does TNFD relate to TCFD?

TNFD is designed as the nature equivalent of TCFD. It follows the same four-pillar structure (Governance, Strategy, Risk Management, Metrics & Targets) and uses a similar approach. However, TNFD adds nature-specific elements: the LEAP assessment approach, location-specific analysis, and consideration of dependencies on nature as well as impacts.

What is the LEAP approach?

LEAP is TNFD's core assessment methodology: Locate your interface with nature (where your operations and value chains interact with ecosystems), Evaluate your dependencies and impacts on nature, Assess your nature-related risks and opportunities, and Prepare to respond and report. It provides a systematic approach to understanding your organization's relationship with nature.

TNFD Disclosure Requirements and Timeline

Status, September 2026: The ISSB decided in late 2025 to develop nature-related disclosure requirements that draw on the TNFD's recommendations. The TNFD is finishing its work in progress by the third quarter of 2026 and pausing new technical work; the ISSB is targeting an exposure draft by COP17 in October 2026. Source: IFRS.

What Is TNFD?

The Taskforce on Nature-related Financial Disclosures (TNFD) published its final recommendations in September 2023, providing a framework for organizations to assess, manage, and disclose nature-related risks, opportunities, and impacts. Modeled on the TCFD for climate, TNFD addresses the broader crisis of biodiversity loss and ecosystem degradation.

Nature-related risks are financially material. The World Economic Forum estimated in 2020 that $44 trillion of economic value, over half of global GDP, is moderately or highly dependent on nature. Biodiversity loss, ecosystem degradation, water scarcity, and deforestation create supply chain disruptions, regulatory risks, reputational risks, and stranded asset risks.

Who It Applies To

TNFD is voluntary but relevant to:

All companies with significant nature-related dependencies or impacts
CSRD-reporting companies (ESRS E4 aligns with TNFD)
Financial institutions managing portfolios exposed to nature-related risks
Companies in nature-dependent sectors: agriculture, food, forestry, mining, construction, pharmaceuticals, utilities
Companies committing to the Global Biodiversity Framework targets

According to the TNFD's 2026 Status Report, 802 organizations had committed to TNFD-aligned reporting as of September 2026, and more than 1,000 organizations had published TNFD-aligned reports.

Key Requirements

Four-pillar disclosure structure:

Governance: Board and management oversight of nature-related dependencies, impacts, risks, and opportunities
Strategy: Nature-related risks and opportunities, their impact on business strategy, and the resilience of the strategy under different scenarios
Risk and impact management: Processes for identifying, assessing, prioritizing, and managing nature-related risks and impacts
Metrics and targets: Metrics and targets used to assess and manage nature-related issues

LEAP approach for assessment:

Locate: Map where your operations and value chain interface with nature using spatial data
Evaluate: Assess your dependencies on ecosystem services and your impacts on nature
Assess: Determine nature-related risks and opportunities arising from dependencies and impacts
Prepare: Develop response strategies and prepare for reporting

Additional TNFD-specific elements:

Location-specific analysis (nature impacts vary by geography)
Dependencies AND impacts (not just risks)
Consideration of all four realms of nature: land, ocean, freshwater, atmosphere

Recommended Metrics

TNFD recommends metrics in three tiers:

Core global metrics: A small set that applies to all sectors, disclosed on a comply-or-explain basis
Core sector metrics: Metrics for each sector, also on a comply-or-explain basis
Additional metrics: A larger set recommended where relevant to an organization's material nature-related issues

Key metrics include:

Area of operations in or near KBAs and protected areas
Extent of land-use change and habitat conversion
Water withdrawal and consumption in stressed basins
Pollutant releases to air, water, and soil
Dependencies on ecosystem services by location

Timeline

September 2023: Final TNFD recommendations published
2024-2025: Early adopter reporting begins; sector guidance published
Late 2025: ISSB decides to develop nature-related disclosure requirements drawing on the TNFD's recommendations; the TNFD says it will finish work in progress by the third quarter of 2026 and then pause new technical work
October 2026: ISSB exposure draft expected, proposed as an IFRS Practice Statement that complements IFRS S1 and S2
2030: End date for the Global Biodiversity Framework's targets, including Target 15 on corporate disclosure of nature-related risks, dependencies and impacts

Compliance Steps

Conduct LEAP assessment: Systematically assess your nature interface, dependencies, impacts, and risks
Map priority locations: Identify operations and supply chain nodes in or near biodiversity-sensitive areas
Assess dependencies and impacts: Use tools like ENCORE, IBAT, and Biodiversity Risk Filter
Evaluate risks and opportunities: Translate nature-related dependencies and impacts into financial risks and opportunities
Set targets: Develop nature-related targets aligned with SBTN and GBF
Report: Publish TNFD-aligned disclosures through your sustainability report

How Council Fire Can Help

Council Fire helps organizations implement the TNFD framework — from LEAP assessments and biodiversity risk screening through strategy development and TNFD-aligned disclosure. Contact us for TNFD support.