The Taskforce on Nature-related Financial Disclosures (TNFD) is an initiative aimed at creating a framework for companies to assess and report their dependence on nature, as well as the risks and opportunities tied to it. Formed with the support of agencies like the United Nations Environment Programme Finance Initiative (UNEP FI), the TNFD consists of 40 task force members who are dedicated to enhancing transparency in financial communications regarding environmental factors.
In September 2023, the TNFD released its disclosure framework, which consists of four main pillars: Governance, Strategy, Risk and Impact Management, and Metrics and Targets. This framework outlines 14 specific disclosure items that companies are encouraged to incorporate into their reporting practices. A set of Global Core Indicators has also been released to apply across all sectors.
To assist businesses in making these disclosures, TNFD has introduced the “LEAP Approach.” This tool involves a structured process where companies can Locate their interaction points with nature, Evaluate their dependencies and impacts, Assess the associated risks and opportunities, and Prepare their disclosures accordingly.
Japanese companies have shown a strong commitment to TNFD disclosures. As of April 2025, Japan leads globally, with 160 companies having made a “TNFD Disclosure Commitment.” Many of these firms are already publishing TNFD reports, representing a diverse range of industries.
This proactive stance by Japanese businesses reflects a growing recognition of the importance of environmental sustainability in corporate strategy, highlighting the potential for positive impact and leadership in global financial transparency related to nature.