The Taskforce on Nature-related Financial Disclosures (TNFD) was established to provide a common structure for organisations and financial institutions to better understand how their activities interact with nature. Built around the LEAP approach (Locate, Evaluate, Assess, Prepare), TNFD encourages firms to think systematically about dependencies on ecosystems, impacts on nature, and how these may influence longer-term financial outcomes. Although TNFD is framed as a voluntary disclosure initiative, it is increasingly viewed as an indicator of where sustainability, risk, and reporting practices are heading.
For banks, TNFD enters the conversation at a time when climate-related considerations are already being integrated into credit processes, portfolio monitoring, and supervisory dialogue. Nature-related topics follow a similar logic but are at an earlier stage of development. Issues such as water use, waste management, land pressure, and resource efficiency are clearly relevant to many borrowers, yet consistent data, methodologies, and benchmarks are still emerging across the market.
This gap is most visible in SME-heavy and supply-chain-focused portfolios. SMEs rarely report against advanced sustainability frameworks, and most are unfamiliar with TNFD as a concept. As a result, there is often a disconnect between the ambition of emerging nature frameworks and what banks can reasonably observe and evidence today. In practice, TNFD currently functions less as a prescriptive standard and more as a direction of travel for how nature-related topics may be incorporated into financial decision-making over time.
How TDH supports banks as nature frameworks continue to mature
As nature-related frameworks such as TNFD continue to take shape, many banks are exploring how to begin engaging with these topics in a way that is proportionate and practical. The Disruption House (TDH) supports this early stage by helping banks identify relevant data that already exists within company disclosures.
Through its M3 platform, TDH collects and structures disclosures around a number of environmental metrics that align with the TNFD framework. These include water consumption and management practices, waste generation and disposal, recycling activities, and broader environmental policies and operational controls. While companies may not report these with TNFD in mind, they represent many of the foundational inputs that TNFD encourages organisations to understand and manage.
By organising this information across portfolios, M3 allows banks to develop early visibility over nature-related practices within their client base. This can support internal sustainability analysis, portfolio reviews, and reporting, while also providing a more informed basis for client engagement. Importantly, this approach does not assume comprehensive coverage or full nature risk quantification. Instead, it helps banks understand what is already disclosed today, where information is strongest, and where further engagement may be required over time.
As frameworks, data standards, and supervisory expectations evolve, this structured foundation provides a practical starting point on which more advanced nature-related analysis can be built.
Why a proportionate approach matters
Nature-related considerations are gaining attention across the financial sector, but they remain complex and unevenly developed. Banks are under increasing pressure to demonstrate awareness and preparedness, while also maintaining analytical credibility.
A proportionate approach allows banks to respond constructively today, using available data to build consistency and insight, while remaining flexible as frameworks such as TNFD continue to develop. Early structure, visibility, and internal alignment are often more valuable than premature precision.
TNFD points to how nature may increasingly feature in financial analysis and reporting. TDH’s M3 platform helps banks take realistic, forward-looking steps in that direction, supporting sustainability and risk teams with structured insights grounded in what companies already disclose today.
