TNFD nature reporting doubles year-on-year
Nature reporting has crossed a threshold. More than 1,000 organizations globally now publish some form of disclosure aligned with the Taskforce on Nature-related Financial Disclosures framework. That figure represents a doubling in the space of a year, and it arrives at a moment when UK businesses face growing expectations around biodiversity risk, not just carbon.
The shift matters because nature-related financial disclosure was, until recently, largely voluntary and experimental. Now it is becoming routine. Some firms are already publishing their third annual cycle of TNFD-aligned information. This suggests the framework is moving from pilot stage to repeat practice, which typically signals the start of permanent reporting infrastructure.
For UK SMEs, the relevance is commercial. Larger customers and public sector buyers increasingly ask suppliers to demonstrate how they manage environmental dependencies beyond emissions. Financial institutions want to understand nature exposure in their portfolios. Consequently, smaller businesses further down the supply chain are starting to receive questions they may not yet have the systems to answer.
The TNFD framework itself was published in September 2023. It provides a structured approach for companies and financial institutions to identify, assess, manage and disclose risks and opportunities related to nature. The 2026 Status Report, released in September, offers the second major global stocktake of adoption since launch. It shows uptake spreading across 56 countries and regions, with 82% of reporting organizations being publicly listed entities.
Growth in formal adoption and assets covered
The report identifies 802 organizations as formal TNFD Adopters. These adopters collectively represent $26.6 trillion in assets under management. That figure underscores the scale of capital now exposed to questions about biodiversity loss, ecosystem degradation, and natural resource dependency.
The year-on-year increase in disclosing organizations stands at 100%. Independent analysis referenced in sector coverage found 1,154 organizations making at least some TNFD-aligned disclosures in 2026, compared with 542 in 2025. The data suggests momentum is building not just among early movers but across a wider base of firms.
More than 100 organizations have now completed three annual reporting cycles. This indicates that initial trials are giving way to embedded processes. Repeat reporting typically requires internal systems, data collection workflows, and governance sign-off. The fact that this is happening at scale points to nature risk becoming a standing agenda item, not a one-off project.
What the TNFD framework covers
The TNFD recommendations include 14 specific disclosures organized around governance, strategy, risk management, and metrics and targets. These mirror the structure of the Task Force on Climate-related Financial Disclosures, which many UK businesses already know through investor or lender requirements.
However, nature is harder to measure than carbon. Dependencies might include water availability for manufacturing, pollination services for food producers, or soil quality for agriculture. Impacts might involve habitat loss from land use, pollution from operational discharge, or disruption to migratory species. Consequently, TNFD reporting requires businesses to understand not only their direct footprint but also the ecosystems their operations rely on or affect.
The framework also introduces the concept of location. Nature risk is place-specific. A facility located near a protected wetland faces different dependencies and constraints than one in an urban industrial zone. Therefore, disclosure often requires geographic data and site-level assessment, which adds complexity for businesses operating across multiple locations.
Why UK businesses are seeing more questions about nature
Several forces are converging. Financial regulators in multiple jurisdictions are exploring mandatory nature-related disclosure requirements. The UK government has committed to align financial flows with nature-positive outcomes, and the Treasury has indicated interest in disclosure frameworks that support this goal.
Major UK pension funds and asset managers are beginning to ask portfolio companies about biodiversity risk. This is partly driven by fiduciary duty and partly by client demand. Institutional investors increasingly view nature loss as a systemic financial risk, not just an environmental concern. As a result, questions about ecosystem dependencies are moving into investor engagement and due diligence.
Public procurement is also shifting. Central government has signaled that environmental standards will play a larger role in contract awards. While current procurement policy focuses heavily on carbon, nature-related criteria are starting to appear in tenders for sectors such as construction, land management, and food supply. Smaller suppliers who cannot demonstrate biodiversity consideration may find themselves at a disadvantage.
Supply chain pressure is another factor. Large UK manufacturers and retailers with TNFD commitments need data from their suppliers to complete their own disclosures. If a company reports on nature-related impacts, it must account for upstream dependencies and downstream effects. That means SMEs in the supply chain will receive requests for information, even if they have no direct obligation to report publicly themselves.
Disclosure requirements now in force or under development
The European Union's Corporate Sustainability Reporting Directive includes nature and biodiversity as mandatory disclosure topics for in-scope companies. UK businesses trading with or operating in the EU may therefore face direct requirements. Even those outside the directive's scope may encounter requests from EU customers or partners who need supply chain data to meet their own obligations.
In the UK, the Financial Conduct Authority has consulted on expanding sustainability disclosure requirements for listed companies and asset managers. While no final rules are yet in place, the direction of travel is clear. Nature-related financial disclosure is moving from voluntary to expected, and in some cases to required.
The Environment Agency has also indicated that it will consider nature dependencies and impacts when assessing environmental permit applications and compliance. Businesses in sectors such as water, waste, chemicals, and heavy industry should expect greater scrutiny of how their operations affect local ecosystems.
Challenges SMEs face with nature reporting
Most UK small and medium businesses lack the in-house expertise to assess biodiversity dependencies or measure ecosystem impacts. Unlike carbon emissions, which can often be estimated using standard factors and utility bills, nature-related data requires site-specific knowledge, ecological understanding, and sometimes field surveys.
Data availability is a further barrier. Carbon accounting benefits from established databases, emission factors, and reporting standards. Nature reporting is less mature. Businesses may struggle to find reliable information on local biodiversity baselines, habitat sensitivity, or water stress levels. Third-party tools and datasets are emerging, but coverage is uneven and costs can be prohibitive for smaller firms.
Another difficulty is scope. A business might depend on ecosystem services such as clean water, raw materials from natural sources, or climate regulation provided by nearby green space. Identifying these dependencies requires thinking beyond direct operations to consider the natural systems that underpin supply chains, locations, and markets. Many SMEs have not yet developed this perspective.
Nevertheless, the commercial case for starting is growing. Businesses that understand their nature-related risks early can make better decisions about site selection, supply chain diversification, and capital investment. Those that wait may find themselves exposed to regulatory penalties, supply disruptions, or lost contract opportunities when customers or buyers demand disclosure they cannot provide.
Essential facts about the latest TNFD data
- Over 1,000 organizations across 56 countries now publish disclosures aligned with at least one TNFD recommendation.
- The number of disclosing organizations doubled between 2025 and 2026, representing a 100% year-on-year increase.
- Formal TNFD Adopters now total 802 organizations, collectively managing $26.6 trillion in assets.
- More than 100 organizations have completed three annual cycles of TNFD-aligned reporting, indicating the framework is moving to routine practice.
- 82% of reporting organizations are publicly listed companies, reflecting strong uptake among investor-facing entities.
- Independent analysis identified 1,154 organizations making some level of TNFD disclosure in 2026, up from 542 in 2025.
What businesses should consider now
Understanding whether your operations depend on or affect natural systems is a logical first step. This does not require full TNFD compliance immediately. Instead, it means identifying which ecosystem services your business relies on and where your activities might create risk to biodiversity or natural resources.
For example, manufacturers using significant water volumes should assess local water stress and availability. Food producers relying on agricultural inputs should consider soil health and pollinator populations. Construction firms working near sensitive habitats should understand potential regulatory or reputational risks. These assessments inform decisions about site planning, risk management, and supplier selection.
Engaging with customers and buyers early can help clarify what information they expect. Many large organizations are still developing their own nature reporting processes. Consequently, requirements may evolve. Regular dialogue ensures you are not caught off guard by sudden data requests or new contract conditions.
Building internal awareness is equally important. Finance teams, procurement managers, and operational staff may not yet view nature risk as within their remit. Training and communication can help embed this perspective across functions. Our SBS Academy training programs include modules on environmental dependencies and disclosure frameworks for businesses new to these topics.
For businesses already engaged with carbon reporting, extending that work to nature-related disclosure is often more efficient than treating the two separately. Many of the governance structures, data collection processes, and stakeholder engagement mechanisms used for carbon reporting compliance can be adapted to cover biodiversity and ecosystem considerations.
Finally, documenting what you do and do not know is valuable. A clear record of your current understanding, data gaps, and planned improvements demonstrates good faith and helps satisfy customer or investor enquiries. It also provides a baseline for tracking progress as your systems mature.
Where to find authoritative guidance
The Taskforce on Nature-related Financial Disclosures publishes the full framework, additional guidance, and sector-specific resources on its official website. The 2026 Status Report is available there and provides detailed analysis of adoption trends and disclosure practices.
The UK government's Department for Environment, Food and Rural Affairs offers guidance on biodiversity net gain, habitat assessment, and environmental land management. These resources can help businesses understand their local ecological context. Visit the Defra homepage for access.
The Environment Agency provides practical tools and datasets for assessing water risk, pollution impacts, and habitat sensitivity across England. Its online guidance includes maps and assessment frameworks relevant to site-level analysis.
For businesses seeking broader context on how nature-related disclosure fits within UK environmental policy, the Treasury's Dasgupta Review on the Economics of Biodiversity remains the foundational reference. It explains the economic rationale for valuing natural capital and the risks of ecosystem degradation to financial stability.