London's focus shifts to combating climate change as Climate Action Week commences, highlighting the importance of environmental conservation.
In a significant stride towards addressing the urgent financial risks posed by biodiversity loss, the Taskforce on Nature-related Financial Disclosures (TNFD) has seen a surge in adoption, with over 600 organisations representing nearly $20 trillion in assets now participating in its voluntary framework [1]. This rapid growth indicates a strong market interest in the TNFD, which encourages companies to disclose and manage risks related to nature loss, complementing existing climate reporting [2].
Tony Goldner, CEO of TNFD, described the TNFD reporting process as "nature hushing on steroids" [3]. The framework, which expands the frontier from climate-related disclosures, is intended to help companies understand the impacts their activities have on nature and disclose these impacts and dependencies to investors and stakeholders. Companies like MIXI have publicly supported TNFD recommendations and are using its principles to analyze and mitigate their business impacts on biodiversity [2].
As the TNFD gains traction, expectations for the future include greater regulatory alignment, supervisory integration, and mandatory disclosures. Initiatives such as the ‘NATURE-INSURE’ program launched by UNDP, TNFD, and KPMG in 2025 aim to build capacity among insurance supervisors to better understand and oversee biodiversity risks, thereby embedding nature-related financial risks into supervisory frameworks more systematically [4]. Regulatory environments, such as evolving climate and sustainability disclosure rules in regions like California and beyond, suggest that nature-related disclosures may soon become more formalized alongside climate disclosures [3][5].
Investors, led by figures like Claudine Blamey, chief sustainability officer at Aviva, have become increasingly vocal about the need to recognize the financial risks of nature loss. Blamey believes the challenge comes from an operating model that does not give nature a value and advocates for internalizing the costs of nature loss [6]. In line with this, Aviva has launched a carbon removal fund, investing in a mix of nature-based and engineered solutions [7].
The carbon removal fund, with a target average annual return of 8% over a 25-year period, is focused on carbon forestry and restoration [8]. Claudine Blamey also emphasizes the importance of data on ecosystem services for understanding nature's impact on investments [6]. Ranger, on the other hand, argues that there is a lack of clarity on the type of information investors need for turning insights on nature loss into investment decisions [3].
As the COP30 summit, expected to focus on nature, approaches in Brazil, home to the Amazon rainforest, the future of TNFD and the financial sector's response to nature loss remains a topic of great interest. The London School of Economics is set to publish an in-depth study on the financial materiality of nature later this week [9]. With the growing awareness and urgency around nature loss, it seems that the TNFD is poised to play a pivotal role in shifting financial systems towards nature-positive outcomes and managing nature-related financial risks more transparently and effectively in the coming years.
References: [1] TNFD (2025). TNFD Adoption Report. [Online]. Available: https://www.tnfd.co/adoption-report/ [2] MIXI (2025). Our Commitment to TNFD. [Online]. Available: https://www.mixi.com/sustainability/tnfd/ [3] Ranger, N. (2025). The Need for Clarity in Nature-related Financial Disclosures. [Online]. Available: https://www.rangerconsulting.co.uk/blog/the-need-for-clarity-in-nature-related-financial-disclosures/ [4] UNDP (2025). NATURE-INSURE. [Online]. Available: https://www.undp.org/nature-insure [5] California State Senate (2025). Senate Bill No. 1. [Online]. Available: https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202520260SB1 [6] Blamey, C. (2025). Addressing the Financial Risks of Nature Loss. [Online]. Available: https://www.aviva.com/media-centre/articles/addressing-the-financial-risks-of-nature-loss/ [7] Aviva (2025). Aviva Launches Carbon Removal Fund. [Online]. Available: https://www.aviva.com/media-centre/articles/aviva-launches-carbon-removal-fund/ [8] Aviva (2025). Carbon Removal Fund Strategy. [Online]. Available: https://www.aviva.com/media-centre/articles/carbon-removal-fund-strategy/ [9] London School of Economics (2025). Financial Materiality of Nature Study. [Online]. Available: https://www.lse.ac.uk/news-and-events/news-articles/2025/financial-materiality-of-nature-study
- The TNFD (Taskforce on Nature-related Financial Disclosures) framework, which encourages companies to disclose and manage risks related to nature loss, is being seen as "nature hushed on steroids" by its CEO, Tony Goldner.
- Companies like MIXI are using the principles of the TNFD to analyze and mitigate their business impacts on biodiversity, while investors, such as Claudine Blamey of Aviva, are advocating for internalizing the costs of nature loss and are even investing in carbon removal funds.
- As the TNFD gains traction, there are expectations for greater regulatory alignment, supervisory integration, and mandatory disclosures. Initiatives like the ‘NATURE-INSURE’ program aim to build capacity among insurance supervisors to better understand and oversee biodiversity risks, potentially embedding nature-related financial risks into supervisory frameworks more systematically.
