Disclose

Overview

Disclosing a business’s nature-related information can happen at any stage of its nature-related action. It is a critical action – focusing on transparency and accountability. 

This stage aligns with the Disclose phase of the ACT-D: High-Level Business Actions on Nature(Opens in a new tab/window) framework and supports businesses in reporting(Opens in a new tab/window) their nature-related dependencies, impacts, risks, and opportunities. 

As global expectations shift, nature-related disclosures are becoming increasingly important to investors, regulators, and consumers. Businesses that disclose early gain strategic advantages, strengthen stakeholder trust, and position themselves for long-term resilience. 

Disclose on nature

Nature-related issues are becoming increasingly material(Opens in a new tab/window) to investors, regulators and consumers. Businesses that publish nature-related reports gain a strategic advantage. 

Recognising businesses dependence on nature, Target 15(Opens in a new tab/window) of the Kunming-Montreal Global Biodiversity Framework calls on businesses to ‘assess, disclose and reduce biodiversity-related risks and negative impacts.’ 

According to the UN Global Compact, businesses that disclose(Opens in a new tab/window) nature-related information experience the following benefits:

• Risk mitigation: Identifying and mitigating environmental risks can helps avoid financial and operational disruptions.
• Competitive advantage: Proactive disclosure and sustainability leadership enhance brand reputation and stakeholder trust.
• Supply chain resilience: Understanding natural resource dependencies secures long-term access to raw materials and reduces vulnerability to disruptions.
• Increased innovation: Investing in nature-positive solutions drives new product development and business model transformation.
• Access to new markets: Sustainable practices open opportunities in markets with growing regulatory and consumer demand for responsible business practices.

‘Being responsive to the environment in which we operate and to the changing expectations of our key stakeholders, is critical to building trust and operating responsibly. With that in mind, we continue to review and evolve the actions we are taking.’ – Emma Walmsley, Chief Executive Officer, GSK(Opens in a new tab/window)

Australia’s reporting landscape

Australia introduced mandatory climate-related reporting for large companies and financial institutions in January 2025. In the Sustainable Finance Roadmap(Opens in a new tab/window), the Treasurer signalled that nature-related risks and biodiversity goals would be incorporated over time. 

The Australian Securities and Investments Commission (ASIC) recognises sustainability reports(Opens in a new tab/window) prepared in accordance with the law help maintain and promote confidence and integrity in Australia’s capital markets. They also support informed decision-making by users of the information.

The Australian Government supported the development of the TNFD framework and encourages Australian organisations to:

• respond to financial market interest in nature-related financial risks and opportunities
• build on lessons learned from climate-related reporting
• consider voluntary nature-related disclosures. 

Global disclosure standards and frameworks

There are many global voluntary and mandatory frameworks for reporting on nature. Key frameworks include: 

• European Sustainability Reporting Standard(Opens in a new tab/window) (ESRS)
• Global Reporting Initiative(Opens in a new tab/window) (GRI) Standards
• International Sustainability Standards Board(Opens in a new tab/window) (ISSB) Standards
• Taskforce on Nature-Related Financial Disclosures(Opens in a new tab/window) (TNFD) recommendations. 

The ISSB, as part of its 2024-2026 work plan, is currently researching the feasibility and necessity of developing ISSB requirements related to biodiversity, ecosystems and ecosystem services (BEES) and human capital. The findings will inform future standard setting. 

In early 2025, the UN Environment Programme Finance Initiative (UNEP FI) updated its comparison guidance(Opens in a new tab/window). It predicts a continued shift from voluntary to mandatory reporting and a growing focus on interoperability between standards.

Other countries and regions are also signalling an increasing focus on environmental, social and governance (ESG) reporting. In 2024, the UNEF FI reported(Opens in a new tab/window) that China’s 3 stock exchanges issued ESG reporting guidelines, and its Ministry of Finance (MOF) finalised the Basic Guidelines for Corporate Sustainability Disclosures. Unlike the ISSB Standards, which focus on financial materiality, MOF’s guidelines follow the principle of double materiality.

Taskforce on Nature-related Financial Disclosures (TNFD) 

The TFND published its recommendations(Opens in a new tab/window) in September 2023, following a 2-year consultation involving feedback from over 60 countries, including Australia. The recommendations include 14 general requirements for nature-related disclosures. These requirements are based around four pillars(Opens in a new tab/window):

• Governance – describes the board’s oversight and management’s role in assessing and managing nature-related dependencies, impacts, risks and opportunities (DIRO) as well as the organisation’s human rights policies and engagement activities.
• Strategy – describes the organisations short, medium and long term DIROs and their effect on the organisation’s business model, value chain, strategy and financial planning as well as the transition plans and scenario analysis. Disclose the criteria for priority locations and the location of direct and indirect assets and activities.
• Risk and Impact Management – describes the organisation’s processes for identifying, assessing, prioritising and managing the direct and indirect nature-related DIROs and how they are integrated into and inform the organisations risk management processes.
• Metrics and Targets – disclose the metrics and targets used to assess and manage material nature-related DIROs.

Global TNFD reporting commitments

Since its launch in September 2023, over 500 organisations worldwide have committed to TFND reporting(Opens in a new tab/window). As of May 2025, 47% of these are based in the Asia-Pacific region, including 25 companies headquartered in Australia. 

Australian companies that have committed to TNFD include:

• Bank Australia
• Brambles
• First Sentier Investors
• Forico
• New Forests
• Telstra Group
• The GPT Group
• Blackmores
• EnergyAustralia
• Lion
• Qantas

In 2023, Forico(Opens in a new tab/window) – Tasmania’s largest private forestry management company – published(Opens in a new tab/window) the world’s first illustrative example of nature- and climate-related financial disclosures.