Alongside climate change, the impact of changes in the natural environment — such as biodiversity loss, water shortages, and land degradation — on corporate activities is becoming increasingly apparent. As these factors become linked to supply chain stability, production costs, and business sustainability, a trend is spreading of viewing the natural environment not as a mere external factor but as an important asset that companies must manage.
It is in this context that the TNFD (Taskforce on Nature-related Financial Disclosures) has emerged. The TNFD presents a framework that enables companies to analyze how dependent they are on nature, what impact they have on it, and how financial risks and opportunities are connected. Since the TNFD was formed in 2021, its final recommendations were published in 2023, and it is establishing itself as the global standard for nature-related disclosure.
[TNFD (Taskforce on Nature-related Financial Disclosures) Ⓟ ESG.ONL/ESG Today]
The TNFD recommendations are composed of the same four core areas as the TCFD (Task Force on Climate-related Financial Disclosures) — Governance, Strategy, Risk and Impact Management, and Metrics and Targets — so companies with TCFD disclosure experience can apply the TNFD relatively quickly. However, unlike the TCFD, which is measured through the single indicator of carbon emissions, the TNFD must handle composite indicators such as biodiversity, water resources, soil, and ecosystem services, requiring greater preparation in data collection and evaluation methodology.
As of May 2025, Japan has 165 companies and institutions that have adopted the TNFD, far ahead of the UK with 70, Taiwan with 30, and the U.S. with 22, while South Korea has only eight. According to Korea Exchange data, among the 178 companies that disclosed sustainability reports in 2024, only 32 mentioned the TNFD, and a mere 24 companies actually utilized the LEAP approach. Domestically, Woori Financial Group, Shinhan Financial Group, KB Financial Group, POSCO, and KT&G have joined the TNFD Forum, and recently, the Gyeongsangbuk-do Development Corporation became the first public institution to adopt the TNFD.
A notable change is the growing likelihood that nature-related disclosure will transition from voluntary recommendations to mandatory regulation. The International Sustainability Standards Board (ISSB) is developing nature-related disclosure standards based on the TNFD framework, with completion targeted for 2026, which could lead to mandatory global disclosure. Domestically, the Financial Services Commission is reviewing the inclusion of nature and biodiversity items in the ESG disclosure mandate roadmap, while the Ministry of Climate and Energy and Environment is conducting research on building an ecological information evaluation system for TNFD application, indicating that institutional preparations are underway.
Companies that have established a nature risk management system before TNFD disclosure becomes mandatory will be able to respond flexibly to future regulatory changes. In addition, they will be able to secure a competitive advantage in terms of sustainability.
by Editor O