Nature climbs up the corporate agenda

Accelerating impact was the central theme at a number of forums I participated in this year, in particular, Ecosperity Week 2025 in Singapore.

I’m encouraged by the conversations I’ve had with clients and business leaders around scaling practical solutions for climate, nature and resource challenges. For me, the most striking shift has been how people are talking about nature. The question is no longer “why does nature matter to business?” but “how do we take action?” And that change is happening fast.

There is a lot of interest in how the work of the Taskforce on Nature-related Financial Disclosures (TNFD) may feed into a future International Financial Reporting Standards (IFRS) Sustainability Disclosure Standard, potentially IFRS S3.¹ This would mirror the way IFRS S2 now integrates climate-related guidance from the Task Force on Climate-Related Financial Disclosures (TCFD)². If this happens, it means that nature risk reporting will shift from “good practice” to a regulatory expectation—and businesses that are prepared will be ahead of the game, better positioned for investor confidence and less likely to face surprises when rules tighten.

I also noticed strong momentum across the Asia Pacific region. Unlike the pushback we’ve seen in other markets, companies here are leaning into sustainability. They’re not just aiming for compliance—they’re thinking carefully about how to communicate their nature and climate strategies in ways that resonate with stakeholders. 

Biodiversity credits were another hot topic, especially for businesses in the forest, land and agriculture sectors. With the next Convention on Biological Diversity Conference of the Parties (CBD COP 17) scheduled for October 2026 as well as the expected progress in this space, interest is growing in how nature markets will evolve in the region. On home ground, the recently tabled 13th Malaysia Plan sets a positive tone on the government’s commitment to explore a number of pertinent biodiversity initiatives including forest carbon offset programmes, forest conservation certificates and blue carbon projects to safeguard biodiversity and coastal ecosystems.   
 
My biggest takeaway? The level of proactivity expressed by business leaders and their desire for practical next steps. Financial institutions, in particular, are asking how they can integrate both nature and climate risks into their reporting frameworks.

How to turn nature risks into strategic opportunities: A practical checklist

A lot of people asked me about the ‘how’. So, I’ve captured the checklist I use when helping businesses move from awareness to action—a practical framework for turning nature-related risks into strategic opportunities. 

Nature and biodiversity issues are no longer confined to sustainability teams. They’re shaping decisions in supply chains, finance, business strategy, risk management and investment. For sectors highly dependent on nature, these risks can have a material impact on financial performance. But a proactive approach can unlock new value and strengthen competitiveness.

For me, it starts with five critical questions.

1. How dependent are businesses on nature?

Nature dependency shows up across operations, supply chains, product design and resource sourcing. The first step is understanding how your business relies on nature and ecosystem services. This includes analysing site locations, the types of natural resources you use and your ecological impact.

Tools such as the Integrated Biodiversity Assessment Tool (IBAT), the Exploring Natural Capital Opportunities, Risks and Exposure (ENCORE) tool, and environmental DNA (eDNA) sampling can help assess biodiversity sensitivity and quantify your nature dependencies.

The insights you gather become the basis for strategy, goal setting and value impact—helping you identify both risks and opportunities, as well as support prioritisation. For example, if water scarcity or soil degradation could disrupt production, investing in ecosystem restoration or resource efficiency strategies may protect both the environment and your bottom line.

2. Who is responsible for implementation?

Managing nature-related risks isn’t the job of one team or department. It requires collaboration across leadership, boards, sustainability teams, finance and operations—with clear accountability and execution structures.

Businesses see the best results when they integrate nature risks and opportunities into existing sustainability or climate strategies. Elevating them as strategic priorities and linking to key performance indicators (KPIs) and incentive structures, helps build real ownership. For example, biodiversity protection or resource efficiency could be goals in departmental KPIs.

Boards also play a critical role. Regularly reviewing the most material nature-related risks at board level can deliver tangible results—mitigating risks and creating new business opportunities.

These actions will need to be supported by interventions at the national level. With the upcoming Malaysian Budget 2026, I’m looking forward to seeing progressive nature-related initiatives take shape in alignment with the 13th Malaysia Plan’s goals. It will be interesting to observe more integration of nature-based solutions into policies on biodiversity and ecosystem management, enabled by innovative finance solutions.  

3. What should we measure and manage?

To manage nature-related risks effectively, businesses need clarity on what to measure—and systems to capture, manage and use that data. This is foundational for strategy development, disclosure and stakeholder engagement. Particularly for sectors like construction, agriculture and food and beverage, which have a higher dependency on nature, having such systems in place will position them well to assess and manage such risks.³

Key indicators might include water usage, soil erosion, biodiversity loss or changes in ecosystem services. You can collect this data at the site, supply chain, or product level—combining both quantitative data and qualitative insights.  
 
Enterprise-wide systems are needed to manage this data. Available tools such as those in the TNFD Tools Catalogue developed in collaboration with PwC and TNFD, can help tailor data systems to industry-specific risk profiles. Technologies like Geographic Information System (GIS) analysis, satellite imagery, Internet of Things (IoT) sensors and blockchain tracking can also support real-time monitoring and improve transparency.

What matters most is using data to inform decisions. If you detect biodiversity decline in a key region, you can adjust sourcing strategies or start a restoration project—turning insight into action.

4. What goals should we set?

Strategic nature risk management means setting clear, medium- to long-term goals—grounded in science and aligned with your business model and regional context. Goals need to be measurable, actionable and specific.

You could use both the Locate, Evaluate, Assess and Prepare (LEAP) approach and the Science Based Targets Network (SBTN) framework together. LEAP focuses on analysing interactions between business activities and nature through those four steps. The SBTN five-step approach—Measure, Prioritise, Set Targets, Act and Monitor—guides companies on setting science-based targets across biodiversity, land, water and oceans.

These goals are not just about environmental responsibility—they deliver competitive advantage. Companies will be able to achieve differentiation through sustainable sourcing and supply chain security, proactive regulatory compliance and brand value.

5. How do we communicate transparently?

Transparent disclosure builds trust with stakeholders. In the age of greenwashing, it delivers a clear signal of execution capability—showing that a company isn’t just making promises but is following through.

The TNFD provides a structured approach to reporting, built around four pillars: Governance, Strategy, Risk Management, and Metrics and Targets. As these are the same foundational pillars of the TCFD, it enables streamlined reporting, making TNFD adoption more seamless. I encourage companies to explain clearly how they identify and manage nature-related risks and opportunities under this framework, in a way that aligns with how climate-related risks are reported under the TCFD.

Aligning TNFD disclosures with other standards—such as those from the International Sustainability Standards Board (ISSB) and the Corporate Sustainability Reporting Directive (CSRD)—also makes good business sense. It helps ensure regulatory compliance and avoids duplication. With IFRS expected to incorporate the TNFD, getting your disclosure systems in place now gives you a head start.

Beyond formal reporting, I believe companies should use other communication channels—sustainability reports, investor briefings, websites, media—to tell their nature story. This strengthens stakeholder confidence and market positioning.