Nature Positive Corporate Assessment Guide for Financial Institutions 2025

Global initiatives such as the Taskforce on Nature- related Financial Disclosure (TNFD), the Glasgow Financial Alliance for Net Zero (GFANZ) and the World Wide Fund for Nature (WWF) are currently developing guidance for corporates and financial institutions to aid the development of nature strategies and transition plans. For instance, TNFD has already been adopted by financial institutions like Legal & General, ENBD, MUFG, UBS and Mirova. The publication of nature transition plans by corporates presents a significant opportunity for financial institutions to access the information they need to assess corporate efforts to transform operations and value chains. As such, this report advocates for the development of guidance on nature transition plans and highlights the key role of financial institutions as consumers of this data. Corporate data on nature is emerging It’s crucial to recognize that nature transition plans are in earlier stages of maturity than climate transition plans. As such, financial institutions will, in the near term, rarely have access to complete and holistic nature transition plans from companies. Nevertheless, a number of companies are already disclosing nature-related information, and, as more companies disclose, data availability and quality will improve. –Globally, 12,545 companies reported on biodiversity to CDP in 2024, while 9,666 reported on water security, 5,615 reported on plastics and 3,851 reported on forests. This number is expected to increase as companies get more experience developing and using nature-related data. –As of October 2024, 502 companies have signed up as TNFD adopters. This number is growing and has increased by 57% since January 2024.17 Working with initiatives like TNFD will familiarize companies with nature disclosure on a global scale. –Companies that fall within the scope of the EU’s CSRD or voluntarily choose to align with it will disclose a wide range of nature-related metrics and data. The EU Corporate Sustainability Due Diligence Directive (CSDDD), which took effect in July 2024, will further drive disclosure. Other standards such as the International Financial Reporting Standards (IFRS) and Sustainability Disclosure Standards set by the International Sustainability Standards Board (ISSB) will increase data availability for other jurisdictions over time. –GSK, Holcim and Kering have publicly adopted freshwater targets with the Science Based Targets Network (SBTN) as part of the Science Based Targets initiative. –Analyses of available nature data conducted by TNFD in March 2022 and again in October 2024 concluded that a significant amount of nature- related metrics and data already exist.18,19 However, the lack of data on the extent of companies’ nature-related impacts represents the most urgent priority and the biggest pain point for market participants. The work being conducted by the Nature Positive Initiative on state-of-nature metrics aims to coalesce companies around key indicators for reporting and disclosure. Globally, 12,545 companies reported on biodiversity to CDP in 2024, while 9,666 reported on water security, 5,615 reported on plastics and 3,851 reported on forests. Nature Positive: Corporate Assessment Guide for Financial Institutions 10