Firms do not have sufficiently robust reporting on nature – EY

Services sector found to be the least aligned with TNFD framework.

Businesses around the world are not yet producing sufficiently detailed reporting to show how they address nature-related risks and opportunities, according to the first-ever EY Global Nature Action Barometer.

EY's analysis of 435 companies found that only 26% align with the Taskforce on Nature-related Financial Disclosures (TNFD) recommendations, even with 93% of firms referencing nature in their public disclosures.

Notably, just 13% of those analysed by EY across the Americas, EMEIA (Europe, the Middle East, India, and Africa), and Asia Pacific have either a standalone TNFD report or a TNFD index that they include in their annual or sustainability reports.

The TNFD recommendations encourage and enable business and finance to integrate nature into decision-making by assessing, reporting, and acting on nature-related dependencies, impacts, risks, and opportunities.

"Out of the four TNFD disclosure pillars (governance, strategy, risk and impact management, and metrics and targets), governance is the pillar where companies score highest on both coverage (87%) and alignment (31%)," EY noted, adding that governance is often the first step towards action on nature.

According to the EY Global Nature Action Barometer, the highest levels of alignment with TNFD recommendations were seen in the consumer goods sector (33%) and the extractives and mineral processing industry (32%). The least aligned, with an alignment score of 19%, is the services sector.

"Businesses have a critical role to play in addressing nature loss," EY stated. "By identifying and managing their impacts and dependencies on nature, companies can contribute to halting and reversing nature loss.

"Those that act decisively will be better positioned to maintain their social licence to operate and respond to growing regulatory and market pressures."

Voluntary market adoption of the TNFD recommendations currently stands at 733 organisations. In November 2025, it was announced that the International Sustainability Standards Board would be moving into a standard-setting process on nature-related risks and opportunities based on the TNFD framework.