SUSTAINABILITY REPORTING
The Taskforce on Nature-related Financial Disclosures framework extends the climate risk disclosure methodology to biodiversity, ecosystem services, and nature dependencies — applying the same governance, strategy, risk management, and metrics structure that TCFD established for climate to the broader category of nature-related risks and opportunities. For organizations in agriculture, food and beverage, extractives, real estate, financial services, and manufacturing, nature-related risks are increasingly material — and investors, lenders, and regulators are beginning to require that they be disclosed in the same structured, verifiable way as climate risks.
Semtrio guides organizations through TNFD adoption: from the LEAP assessment that identifies material nature-related dependencies and impacts, through to disclosure design aligned with the TNFD framework's recommended disclosures. As a TNFD Forum Member, we bring methodological depth from the standard-setting level to every engagement.
The TNFD framework is currently voluntary. However, institutional investors with over $20 trillion in assets under management have publicly committed to requesting TNFD-aligned disclosures from investee companies. For organizations in sectors with material nature dependencies — agriculture, food and beverage, mining, forestry, and real estate — TNFD disclosure is already an investor expectation for a significant portion of their shareholder base.
Organizations subject to CSRD are required to disclose against ESRS E4 — Biodiversity and Ecosystems — which covers material nature-related impacts, risks, and opportunities. The TNFD framework and ESRS E4 are methodologically aligned. For organizations in CSRD scope, TNFD preparation and ESRS E4 reporting are, in practice, the same work — and Semtrio designs them as one integrated engagement.
TNFD's core assessment methodology — Locate, Evaluate, Assess, Prepare — guides organizations through identifying where nature-related dependencies and impacts occur across the value chain, evaluating their potential financial materiality, assessing the risks and opportunities they create, and preparing the disclosure. The LEAP approach is specific, structured, and requires both ecological data and financial analysis — making it materially different from climate-focused assessments most organizations have already conducted.
TNFD was designed to build on the foundations of TCFD — the same four pillars of governance, strategy, risk management, and metrics and targets. The assessment logic is structurally the same; the subject matter is broader. This means organizations that have already completed TCFD or IFRS S2 climate disclosure have a significant head start on TNFD — the governance structures, risk management processes, and scenario analysis frameworks are transferable. What TNFD adds is the LEAP assessment, nature-specific data (using databases such as IBAT, Global Biodiversity Score, and ENCORE), and disclosure of nature-related dependencies and impacts alongside climate.
Semtrio's TNFD advisory is designed to integrate with, not sit alongside, existing climate and sustainability disclosure workstreams. We design the LEAP assessment to draw on existing GHG inventory data, double materiality outputs, and supply chain datasets — eliminating duplication and producing a nature-related disclosure that strengthens the overall sustainability reporting system rather than adding to it.
OUR PROCESS
A structured TNFD disclosure — from LEAP assessment to investor-grade nature-related reporting.
For organizations subject to CSRD, nature-related topics assessed through TNFD's LEAP methodology directly feed ESRS E4 biodiversity disclosures — running both as an integrated engagement eliminates duplication and produces a stronger double materiality matrix.
Learn moreTNFD assessment requires understanding of Scope 3 value chain emissions — nature-climate interactions are at the core of the TNFD framework, and organizations without a verified GHG inventory cannot complete a credible LEAP assessment of climate-nature dependencies.
Learn moreGRI 304 (Biodiversity) is the most widely used voluntary standard for nature-related reporting — for organizations producing GRI-aligned sustainability reports, Semtrio designs TNFD and GRI biodiversity disclosures from a shared data architecture.
Learn moreNature-related risks frequently originate in the supply chain — deforestation, water extraction, and land conversion by suppliers are among the most material nature-related exposures for food, agriculture, and manufacturing organizations. Supply chain due diligence data directly supports the LEAP assessment.
Learn moreWe are a TNFD Forum Member — operating at the standard-setting level of nature-related financial disclosure.
TNFD Forum membership is the most direct signal of methodological authority in nature-related financial disclosure. Forum members work at the standard-setting interface — with early access to TNFD guidance, implementation tools, and the technical documentation that shapes how the framework is applied in practice. Semtrio joined the TNFD Forum before most advisory firms had published their first TNFD thought piece. That institutional commitment reflects where nature-related disclosure is going, not just where it is today.
The TNFD methodology builds on TCFD foundations — the same governance structures, the same four-pillar disclosure model, the same scenario-based thinking. Semtrio's experience authoring TCFD climate transition reports and delivering IFRS S2 climate risk disclosures means the methodological distance from climate to nature is shorter for us than for firms starting from sustainability reporting generalism. We apply the same analytical rigour — scenario analysis, financial materiality quantification, governance documentation — to nature as we apply to climate.
For organizations subject to CSRD, our TNFD advisory is designed to feed ESRS E4 simultaneously — one LEAP assessment, two compliant outputs. For organizations approaching TNFD voluntarily in response to investor pressure, we design the disclosure to meet the expectations of the institutional investors who have committed to requesting it.
Assess your nature-related disclosure readiness with our teamWhether you're scoping a single service engagement, evaluating end-to-end advisory across multiple clusters, or looking for one accountable partner across strategy and disclosure — start here.
Yaren Ünal
Senior Specialist,Client Solutions
Hamza Söylemez
Specialist,Client Solutions
Frequently asked questions about TNFD
The Taskforce on Nature-related Financial Disclosures is a global initiative that has developed a framework for organizations to assess, manage, and disclose nature-related financial risks and opportunities. TNFD extends the TCFD climate disclosure methodology to biodiversity and ecosystem dependencies — applying the same four-pillar structure of governance, strategy, risk management, and metrics and targets to nature. TNFD disclosure is currently voluntary. However, the framework has been formally adopted by over 400 organizations globally, and institutional investors with over $20 trillion in assets under management have committed to requesting TNFD-aligned disclosures from their investee companies. For organizations in sectors with material nature dependencies — agriculture, food, extractives, real estate, and financial services — TNFD is an emerging investor expectation that is moving quickly toward mainstream adoption.
Organizations with material dependencies on ecosystem services or material impacts on nature are the primary TNFD audience — including companies in agriculture, food and beverage, forestry, mining, real estate, water-intensive manufacturing, and financial institutions with nature-exposed portfolios. TNFD is also directly relevant for organizations subject to CSRD — the ESRS E4 Biodiversity and Ecosystems standard requires disclosures that are methodologically aligned with TNFD's LEAP assessment. For CSRD-scope organizations, TNFD preparation and ESRS E4 reporting are, in practice, the same engagement. Organizations with institutional investors that have made TNFD disclosure commitments should also be assessing their readiness proactively.
LEAP — Locate, Evaluate, Assess, Prepare — is the TNFD's core methodology for identifying and assessing nature-related risks and opportunities. Locate identifies where the organization's operations, assets, and supply chains interface with nature, using ecosystem sensitivity maps and biodiversity databases. Evaluate assesses the organization's dependencies on ecosystem services — such as water supply, pollination, climate regulation, or soil health — and its impacts on those systems. Assess identifies the financial risks and opportunities that arise from material dependencies and impacts, covering physical, transition, and systemic risks. Prepare refers to the disclosure preparation process — structuring the findings into TNFD-aligned outputs across the four recommended disclosure pillars. The LEAP approach is designed to work across sectors and geographies and is the primary reference for ESRS E4 biodiversity disclosures under CSRD.
TNFD, CSRD/ESRS E4, and IFRS S2 form an increasingly connected disclosure ecosystem. TNFD was designed to build on TCFD — the framework that IFRS S2 has since formalized — meaning the governance, scenario analysis, and risk management methodology is structurally shared across all three. For CSRD reporters, ESRS E4 (Biodiversity and Ecosystems) and TNFD use the same LEAP methodology and cover the same material nature-related topics — organizations can design one assessment that serves both. TNFD also aligns with CDP Forests and CDP Water — organizations disclosing through those programmes are already producing data that supports TNFD readiness. The practical implication is that TNFD should not be treated as a separate workstream — it should be integrated into the existing climate and sustainability disclosure system.
Semtrio's TNFD advisory follows the four-phase LEAP methodology. We begin by mapping where the organization's operations and value chain intersect with sensitive ecosystems — using biodiversity databases and ecosystem sensitivity data — and evaluate the dependencies on and impacts to relevant ecosystem services. We then assess the financial risks and opportunities that arise from material nature interfaces, estimating financial exposure and materiality. We design the TNFD-aligned disclosures across the four governance, strategy, risk management, and metrics pillars — cross-referencing with ESRS E4, CDP, and IFRS S2 where applicable to eliminate duplication. Finally, we integrate the TNFD outputs into the organization's existing sustainability and financial reporting system and support year-on-year improvement as the framework matures.
Talk to our team about your nature-related disclosure readinessWhether you are approaching TNFD for the first time in response to investor pressure, or preparing ESRS E4 disclosure as part of your CSRD obligations — we will assess your sector exposure, conduct the LEAP assessment, and produce the disclosure your stakeholders require.
Whether you are approaching TNFD for the first time in response to investor pressure, or preparing ESRS E4 disclosure as part of your CSRD obligations — we will assess your sector exposure, conduct the LEAP assessment, and produce the disclosure your stakeholders require.
