A study indicates a critical gap in corporate responsibility and environmental stewardship among JSE-listed companies at a time when global awareness of biodiversity loss and ecosystem health intensifies.
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In a striking revelation, a recent assessment of 20 major companies listed on the Johannesburg Stock Exchange (JSE) has uncovered a worrying trend: only one firm has formally embraced the Taskforce on Nature-related Financial Disclosures (TNFD) framework. Even more alarming, by the end of 2025, a mere four companies had pledged to align their public disclosures with the TNFD's recommendations. The findings, published in the report Fast-tracking Finance for Nature: Trends in Nature-related Financial Disclosures of South African Companies by WWF South Africa, highlight a critical gap in corporate responsibility and environmental stewardship at a time when global awareness of biodiversity loss and ecosystem health intensifies.
As the world grapples with significant environmental crises, South African companies appear to lag far behind. Over 620 organisations globally, representing assets of more than $20 trillion (R335.8 trillion), have committed to TNFD-aligned disclosures, a stark contrast to the unwillingness of the local sector to engage with these vital sustainability standards.
"South African companies have work to do when it comes to understanding and disclosing their full impact on nature," says Pavitray Pillay, Head of Business Development and Marketing at WWF South Africa. "While good strides have been made on climate disclosures, there is a lack of understanding and attention given to the business impact on nature. Yet without nature, there simply is no business."
Nature, as Pillay points out, undergirds the very foundation of every business value chain, providing essential services such as clean water, fertile soils, and raw materials. Disruption of these ecosystems can lead to immediate negative impacts, including increased operational costs and reduced productivity. The urgency for local companies to acknowledge and manage these risks grows as the World Economic Forum ranks biodiversity loss as the second greatest long-term risk to economies, just behind extreme weather events.
The financial implications are glaring. In the first half of 2025, natural disasters alone resulted in economic losses totalling $162 billion globally. Time is of the essence, especially as the 2030 deadline for halting biodiversity loss under the Kunming-Montreal Global Biodiversity Framework approaches. With increasing pressures from both investors and regulators — who are expected to adopt stringent sustainability disclosure standards — South Africa's corporate landscape must evolve or face potentially dire consequences. "We cannot manage what we do not measure," Pillay says. Yet currently, most South African companies lack comprehensive measurement and management of nature-related impacts.
Despite recognising the existence of TNFD recommendations, the action among assessed companies remains disconcertingly low. Although climate-focused disclosures have made notable strides across various sectors, the equally critical issue of nature-related disclosures seems relegated to an afterthought. Alarmingly, governance concerning nature-related dependencies, impacts, risks, and opportunities was not clearly disclosed by any of the surveyed firms. Notably, no South African bank has formally committed to the TNFD framework.
The commitment to addressing nature-related metrics appears lacking, with remuneration committees focusing on climate action but ignoring nature in executive pay structures. This is a glaring indicator of where nature stands on corporate priority lists. Global investors are increasingly vigilant about these risks, with 63% of respondents from the TNFD's 2025 Status Report believing their nature-related risks hold equal or greater significance than climate-related risks.
On the horizon, the regulatory environment for nature-related disclosures is shifting. Proposed international sustainability disclosure standards (IFRS S1 and S2) will soon mandate reporting on nature-related risks and their influence on financial performance. Additionally, the King V Code on Corporate Governance, which took effect in January 2026, underscores the role of company boards in overseeing nature-related risks and opportunities. For businesses that expect to merely react to regulations rather than strategically plan for them, the risk of being unprepared grows by the day.
Pillay says that while tools and frameworks exist, the essential drive to implement them must follow. "Consistent public disclosures can turn sustainability narratives into decision-useful information," she says. The TNFD recommendations offer a practical blueprint for companies keen to integrate nature-related risks into their models effectively. Pillay suggests that firms should embed nature oversight in leadership charters and employ the TNFD's Locate, Evaluate, Assess and Prepare (LEAP) approach — allowing a smoother transition to robust nature-related disclosures.
"By acting on, managing, and disclosing nature-related risks," Pillay says, "South African firms can pivot towards a financial system that supports nature-positive outcomes." WWF South Africa's latest contributions to this discourse, including the report, Nature Finance in South Africa: Taking the leap from framework to practice, delve into actionable insights and sector-specific examples for mining and agriculture, providing a necessary roadmap for the future.