Article source: ESG Today
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The Taskforce on Nature-related Financial Disclosures has released LEAP 2.0, an updated framework designed to help organisations assess and disclose their dependencies and impacts on natural systems. This follows the original TNFD beta guidance released in 2023 and sits alongside emerging regulatory mandates – the EU's Corporate Sustainability Reporting Directive now requires certain organisations to report nature-related risks, and similar requirements are emerging elsewhere.
LEAP 2.0 builds on the original four-pillar structure (Locate, Evaluate, Assess, Prepare) but incorporates feedback from early adopters and aligns more tightly with the double-materiality concept that underpins EU taxonomy and CSRD compliance. The framework is intended to help organisations identify which natural assets matter most to their operations, quantify financial exposure to nature loss, and integrate findings into board-level risk governance.
Where this matters: nature-related disclosure remains less standardised than climate reporting, creating implementation friction for multinationals operating across jurisdictions with different regulatory expectations. Organisations that embed TNFD thinking now will have clearer audit trails and stronger evidence for materiality assessments when regulators tighten compliance deadlines. The update also signals that nature and climate disclosure frameworks are converging – treating them as separate workstreams is increasingly inefficient.
The question for boards: is your supply chain mapping granular enough to identify nature-related financial risk in jurisdictions where your organisation has no direct operations?