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Introduction: Why Nature-Related Disclosures Are Taking Center Stage
As the global environmental crisis deepens, nature-related risks have become a top priority for businesses, investors, and regulators. Biodiversity loss, water scarcity, deforestation, and land degradation are no longer distant threats. They are material financial risks that companies must disclose, manage, and mitigate. In response, the Carbon Disclosure Project (CDP), one of the world’s leading environmental reporting platforms, has announced a significant expansion of its disclosure system: from 2025 onwards, nature-related disclosures will be integrated into its core questionnaire.
This evolution reflects growing international momentum behind frameworks like the Taskforce on Nature-related Financial Disclosures (TNFD) and supports global goals such as the Kunming-Montreal Global Biodiversity Framework. As ESG expectations rise, companies that fail to align with nature-positive practices risk losing investor confidence, market share, and access to capital. This article explores what businesses should expect from CDP’s enhanced nature-related reporting from 2025, how it differs from climate-related disclosure, and how to prepare strategically.
CDP’s Transition to Integrated Nature-Related Disclosures
CDP has long been a central player in environmental transparency. Traditionally focused on climate change, forests, and water security, its evolution into a fully integrated disclosure platform marks a major turning point. In 2025, CDP will launch a unified questionnaire aligned with the TNFD framework, enabling organizations to report nature-related dependencies, impacts, risks, and opportunities in a structured and comparable manner.
CDP’s 2024 pilot version of the nature-related questionnaire was voluntary. However, from 2025, the nature-related module will become a mandatory component for companies already disclosing to CDP, especially those in sectors with high nature-related dependencies—like agriculture, apparel, food and beverage, chemicals, and mining. The questionnaire will include key metrics on land use, ecosystem services, biodiversity impacts, and exposure to water-related risks.
CDP’s Shift in Scope
| Year | CDP Scope | Focus Areas |
|---|---|---|
| 2023 | Climate, Forests, Water | Voluntary TNFD-aligned pilot questions |
| 2024 | Pilot Expanded | Optional TNFD alignment for selected sectors |
| 2025 | Integrated Questionnaire | Climate, Nature (TNFD-aligned), Water, Forests |
This shift is designed to mirror the four pillars of the TNFD framework: Governance, Strategy, Risk and Impact Management, and Metrics and Targets. Companies will be expected to identify priority ecosystems, assess nature-related risks and opportunities, and integrate findings into their overall business strategy.
How TNFD Shapes CDP’s Nature Reporting Structure
The Taskforce on Nature-related Financial Disclosures (TNFD) has provided a robust structure for integrating nature into corporate governance and risk management. Like its predecessor—the TCFD for climate—the TNFD promotes the identification and management of risks related to natural capital and ecosystem services. CDP’s 2025 reporting shift aligns closely with this model, particularly in the use of LEAP (Locate, Evaluate, Assess, Prepare) methodology.
The LEAP Approach
| Step | Description |
|---|---|
| Locate | Identify business activities in sensitive or high-value natural ecosystems |
| Evaluate | Assess dependencies and impacts on nature, including water, soil, and biodiversity |
| Assess | Analyze nature-related risks (physical, transition, systemic) and opportunities |
| Prepare | Integrate nature into governance, strategy, risk management, and disclosure processes |
CDP’s adoption of LEAP will support a risk-informed decision-making process that spans the full enterprise value chain, especially relevant for companies with Scope 3 dependencies in agriculture, fisheries, or forestry. By emphasizing location-based data, CDP aims to move beyond generic disclosures and promote precision in understanding nature-related exposure.
The updated reporting will require companies to conduct geo-spatial assessments, engage with local stakeholders, and adopt science-based targets for nature (SBTN). In effect, ESG reporting will no longer be complete without nature-positive alignment, particularly in how firms manage supply chain biodiversity risks.
Business Implications and Sector-Specific Considerations
The implications of CDP’s nature-related shift are both strategic and operational. For companies, this means enhanced due diligence, greater data complexity, and expanded stakeholder engagement. However, it also presents an opportunity to demonstrate leadership, resilience, and long-term value creation.
Nature-Related Risk Hotspots by Sector
| Sector | Key Nature Dependencies | Common Risks Identified |
|---|---|---|
| Agriculture | Soil fertility, water, pollinators | Deforestation, biodiversity loss |
| Food & Beverage | Freshwater, ecosystem services | Water scarcity, reputational risks |
| Apparel | Cotton, dyes, water | Supply chain exposure, land use change |
| Mining | Land access, ecosystems | Ecosystem degradation, social license |
| Chemicals | Biomass inputs, water | Pollution, regulatory transition risks |
Investors and regulators are also paying close attention. Financial institutions will increasingly demand TNFD-aligned reporting from portfolio companies to assess natural capital risks. Regulatory bodies in Europe, Asia, and Latin America are already embedding nature disclosures into ESRS (European Sustainability Reporting Standards) and national biodiversity strategies. Firms failing to keep pace may face capital reallocation or divestment.
From a supply chain perspective, the 2025 CDP nature disclosures will incentivize suppliers to map biodiversity dependencies, reduce ecosystem pressures, and collaborate on regenerative solutions. Multinational corporations will need to offer training, tools, and incentives to Tier 1 and Tier 2 suppliers, especially in biodiversity-rich areas.
Strategic Preparation for 2025: Actions for Companies
To prepare for CDP’s integrated nature-related disclosures in 2025, companies must adopt a proactive and cross-functional approach. Rather than treating nature disclosures as an add-on to climate reporting, companies should fully embed nature into their risk management and ESG governance structures.
Key Preparation Steps
- Understand Material Nature Risks: Use tools like ENCORE, IBAT, and SBTN to identify ecosystem dependencies and exposure hotspots.
- Pilot TNFD-aligned Reporting: Start with voluntary TNFD disclosures or use CDP’s 2024 pilot as a dry run.
- Engage the Value Chain: Collaborate with suppliers and partners to collect relevant biodiversity and land use data.
- Invest in Data Infrastructure: Adopt geo-spatial tools and biodiversity tracking systems to improve data quality.
- Build Internal Capacity: Train ESG, procurement, and risk management teams on nature-positive business practices.
CDP and other stakeholders have released guidance documents, sector roadmaps, and case studies to support this transition. Participating in collaborative platforms like Business for Nature, TNFD Forum, or Science Based Targets Network (SBTN) can also accelerate learning and alignment.
Corporate Readiness Overview
| Action Item | Status in 2024 | Recommended Status by 2025 |
|---|---|---|
| TNFD Familiarity | Low to Medium | High |
| Ecosystem Mapping | Rare | Standard Practice |
| Supplier Nature Data Collection | Emerging | Integrated |
| Geo-Spatial Disclosure Capability | Limited | Robust |
| Science-Based Targets for Nature | Voluntary | Adopted or in Progress |
Conclusion: Nature as the Next Frontier of ESG Reporting
From 2025 onwards, CDP’s new questionnaire will reflect a fundamental shift in how companies understand and disclose their relationship with nature. As biodiversity loss accelerates and public scrutiny intensifies, voluntary nature-related disclosure is giving way to a regulatory and investor imperative. Businesses will need to articulate how they depend on and impact the natural world, not just to mitigate risks, but to maintain long-term competitiveness.
The CDP’s alignment with TNFD marks the beginning of a new ESG era, one where climate and nature are inseparable. Firms that lead in integrating nature into their business models will not only secure reputational gains but also unlock innovation, resilience, and capital.
As we approach 2025, the time to act is now. Companies should build internal capabilities, engage value chains, and embrace nature-positive transformation as a strategic priority. The rise of nature-related disclosures is not just a compliance issue, it is a chance to redefine value creation in harmony with the planet.
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