Asia Pacific Leads Global Nature Disclosures as Investors Push for Transparency

Asia Pacific Leads Global Nature Disclosures as Investors Push for Transparency

Asia Pacific companies are setting a global standard in disclosing nature-related impacts, according to a recent Taskforce on Nature-related Financial Disclosures (TNFD) report. This trend is being driven by the Kunming-Montreal Global Biodiversity Framework (GBF) agreement and investor concerns about nature loss.

The region's leadership in nature-related disclosures is evident in several ways. Over 86% of Asia Pacific respondents are already using or planning to use the TNFD framework for reporting. Notably, Ricoh, a company from the region, is globally recognised for its environmental reporting, having been repeatedly featured in TIME Magazine's 'World’s Best Companies 2025' list. More than 30% of asset managers have published assessments of their investments' direct impacts and dependencies on biodiversity.

Investor concern is a significant driver. Over 50% of investors surveyed expressed 'very high' concern about nature loss impacts on financial markets. This, coupled with increasing policy and regulatory attention, such as the Network for Greening the Financial System (NGFS) advocating for nature-reporting, is pushing companies to disclose more. The United States, Japan, and China lead in meeting TNFD disclosure recommendations, with China having the highest percentage of companies reporting against a nature metric, at 9.2%. However, it's suspected that many more companies may already be making such disclosures not currently associated with the TNFD.

The Asia Pacific region, home to 17 of the world's 36 biodiversity hotspots and 7 of the 17 megadiverse countries, is at the forefront of nature-related disclosures. With investors, policies, and frameworks driving the trend, companies are increasingly expected to report on their impacts and dependencies on nature. This transparency is crucial for protecting the region's rich biodiversity and mitigating global nature loss.

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