The world is waking up to nature’s crucial role in our economy. Businesses are increasingly acknowledging their nature-related dependencies, with research showing that 85% of S&P Global 1200 companies have a significant dependency on nature across their direct operations.

Investors are also taking note, recognising the potential impact of nature-related risks on their portfolios. With both voluntary and mandatory nature reporting standards gaining momentum and over 500 organisations already committed to public reporting against the Taskforce Nature Related Financial Disclosures (TNFD) framework, the need for accessible, reliable nature data is paramount.

Barriers to data collection

Companies face a complex challenge in gathering and interpreting nature-related data. The TNFD’s extensive research, including its Landscape Assessment of Nature-related Data and LEAP pilot testing program highlighted some of the key obstacles:

• Unfamiliarity: Many companies are unaware of the nature data sources already available
• Inconsistency: Data often lacks comparability and consistency
• Quality concerns: Businesses worry about the quality and timeliness of available data

Adding to this complexity is the evolving landscape of nature-related reporting frameworks. New sustainability assurance standards, such as the IAASB’s ISSA 5000, are setting more demanding thresholds for sustainability data. Simultaneously, established financial reporting frameworks, like the Conceptual Framework, mandate adherence to a specific set of data principles. Companies must navigate these converging requirements to deliver decision-useful information that withstands scrutiny.

TNFD’s three-pronged solution

The TNFD has already made headway in addressing some of these reporting challenges, publishing a Tools Catalogue in 2022, which provides an overview of the nature-related data tools available to the market.

In the next phase of its plan to transform the nature data landscape, the TNFD is implementing a comprehensive three-pronged strategy. The three stages include:

• Finalising a clear set of data principles
• Researching and specifying nature data value chain enhancements
• Developing and beta testing a Nature Data Public Facility (NDPF)

Finalising a set of nature data principles

The TNFD is focused on researching and identifying quality improvements in the upstream nature data value chain. This includes data collected by conservation, government, intergovernmental and scientific organisations. Planned pilot testing in 2025 will assess the coverage and quality of existing nature data sets identifying critical gaps and prioritising areas for urgent investment.

This exercise will also ascertain the consistency, timeliness, currency and comparability of existing nature-related data. The final goal of this exercise would be to present an evidence-based case to funders at the end of 2025, outlining suggested enhancements across the nature data value chain.

Developing a Nature Data Public Facility

At the heart of the TNFD’s three-pronged strategy is the NDPF, envisioned as a central repository of foundational nature-related data. The TNFD conducted an initial scoping study in 2023, exploring the case for an NDPF, which attracted significant positive attention from governments and market participants. The study concluded that there was a market failure in the provision of nature-related data and recommended the use of an open access nature based public data facility.

The TNFD’s vision for the NDPF is to “curate and facilitate better, faster, cheaper access to decision-useful, nature-related data”. It aims to provide an intuitive and customisable user experience, thereby potentially accelerating the adoption of voluntary reporting standards. Critically, the NDPF will ensure data aligns with defined principles, enhancing its ability to be assured.

An international panel of experts is already working to optimise the NDPF’s configuration, ensuring seamless connections between upstream data sources and downstream users. Recognising the wealth of existing nature-related data held by specialist organisations, the NDPF will focus on facilitating access agreements rather than duplicating data collection efforts.

The next phase will involve pilot testing a beta version of the NDPF with key partners across the nature data value chain.

As investor interest in nature-related data grows and reporting requirements intensify, the need for timely, reliable and relevant data is more urgent than ever. The TNFD’s proactive approach, establishing clear data principles, researching upstream data improvements, and early scoping of an NDPF, offers a promising path forward. These initiatives should empower businesses to effectively assess and manage nature-related risks and opportunities, contributing to a more sustainable future.

If you’re navigating the complexities of nature-related reporting, Design Bridge and Partners can help. Contact our team to learn more about how these evolving disclosures will impact your organisation.

Kelly Schoolcraft-Wills, Head of Sustainability and Corporate Communications: kelly.schoolcraft-wills@designbridge.com.