The TNFD: Expansion And Exploring A New Frontier In APAC

The TNFD: Expansion And Exploring A New Frontier In APAC

On February 18, 2025, the Taskforce on Nature-related Financial Disclosures (TNFD) launched its new capacity-building platform in response to 'significant demand' from firms seeking to develop 'practical skills' and 'capability-building support'. In its release statement, the Taskforce – which is responsible for $17.7 trillion in assets under management – announced that it now has 520 TNFD Adopters, 20 Consultation Groups, 1,700 member organizations and more than 300,000 downloads of its guidance documents. The platform itself contains two new tools, designed to upskill market participants and provide beneficial content to third-party training providers.

So, why is this of interest?
The terms ‘ESG' and 'climate' have become increasingly politicized, particularly in the US, causing some firms to revise or withdraw their sustainability commitments. In Europe, the Omnibus simplification proposal is set to reduce the scope of CSRD applicability, reducing the potency of the CSRD as a regulatory driver for many firms. As such, CSOs and investors will be asking themselves: ‘what does the future hold for corporate sustainability?’ and, ‘where should opportunities be sought?’

Nature may hold the answers.

Nature and biodiversity remain keystones for generating broad appeal
Verdantix has been analysing the influence of the TNFD since its inception and, in early 2024, highlighted the importance of nature considerations and the opportunities and risks associated with the economic value of natural assets. In January, we predicted a 25% increase in private financing for nature-based solutions in 2025 and have also noted an increasing appetite for de-politicizing ESG agendas, with emphasizing the importance of 'nature' a key tool in achieving this.

In February 2025, we highlighted the applicability of TNFD recommendations to the European Sustainability Reporting Standards (ESRS) and the interest voiced by the ISSB in April 2024 for incorporating the recommendations of the TNFD into its work on nature-related issues.

The Taskforce boasts the ability to engage the interest of a growing global audience. Most recently, it has significantly furthered its presence in APAC. The Bank of China became the first Chinese financial institution to join the Taskforce in January 2025. Alongside this, two new Consultation Groups were launched in Hong Kong and Beijing. These simultaneous developments are indicative of the commitment of Chinese institutions to engage with nature-based decision-making. Furthermore, the interest generated by the TNFD across 130 Japanese firms prompted financial investment in the Taskforce by the Government of Japan, announced in late 2024.

As Europe and the US see attitudes towards ESG and climate-based agendas change, nature remains a keystone for generating broad appeal, becoming the new frontier for sustainability and climate change consulting. The momentum nature has generated in APAC should pique the interest of investors, nature strategists and vendors based in the region or seeking to enter its markets.