TNFD and nature reporting: what's coming for UK SRS

The Taskforce on Nature-related Financial Disclosures (TNFD) published its final recommendations in September 2023 to give companies and investors a consistent framework for assessing and reporting their dependencies and impacts on nature 16. Building on TCFD's climate precedent, TNFD addresses the $44 trillion of economic value generation that depends on nature and the estimated $3.5 trillion annual financing gap for nature-positive outcomes 17.

TNFD's core methodology is the LEAP approach: Locate your interface with nature, Evaluate dependencies and impacts, Assess risks and opportunities, and Prepare to respond and report 16. Its disclosure structure mirrors TCFD's four pillars: governance, strategy, risk and impact management, and metrics and targets 16.

Adoption has scaled rapidly since launch. By December 2025, TNFD reported 733 organisations globally had committed to its recommendations, representing over US$9 trillion in listed-company market capitalisation and more than US$22 trillion in assets under management 17. This includes major UK entities across financial services, infrastructure, and natural resource sectors.

The ISSB has set a target to publish its nature-related exposure draft to coincide with the Convention on Biological Diversity COP17 in Armenia, October 2026 19. This timeline positions nature standards to build on existing climate disclosure momentum while allowing coordination with the UN biodiversity framework process 21.

Following typical ISSB processes, a final nature standard would likely emerge in 2027, subject to due process and stakeholder consultation outcomes 19. The TNFD has confirmed it will complete its current technical work programme — including enhanced sector guidance and location data methodologies — by Q3 2026, then pause new guidance development to support the ISSB's standardisation effort 17.

This coordination ensures TNFD's market-tested approaches inform the ISSB standard while avoiding competing frameworks. For UK companies, this means nature reporting requirements will follow established UK SRS implementation patterns: ISSB development (2025-2027), UK government endorsement process (2027-2028), then mandatory application for qualifying companies.

Nature data collection and baseline establishment require significant lead times, making early preparation strategically valuable for companies with material nature exposures. The TNFD LEAP methodology provides a systematic approach for mapping dependencies and impacts across value chains, even while formal UK requirements are still in development 16.

This preparation mirrors lessons learned from Scope 3 emissions reporting: data infrastructure and supplier engagement take far longer to establish than regulatory implementation timelines allow 23. Early adopters of TNFD's LEAP approach report 18-24 month timelines for comprehensive nature risk assessments across complex value chains 17.

UK companies should coordinate nature-related corporate disclosure preparation with existing statutory obligations including biodiversity net gain requirements and environmental impact assessments, while maintaining clear boundaries between corporate reporting and planning consent obligations 24. Consider integrating nature risk assessment into existing UK SRS S1 materiality processes where nature dependencies or impacts could reasonably affect enterprise value.