Singapore, 14 January 2025 — The inaugural study on nature-related reporting and climate transition plans by the Centre for Governance and Sustainability (CGS) at the National University of Singapore (NUS) Business School and Kering revealed significant gaps in nature-related reporting and low adoption rate of the Taskforce on Nature-related Financial Disclosures (TNFD) framework among companies in Asia Pacific.
Nature-related disclosure remains nascent
The study, which analysed 700 listed companies across 11 industries and 14 Asia Pacific jurisdictions, focused on four key pillars: governance, strategy, risk and impact management, and metrics and targets. It found that while 72% identified topics such as water, biodiversity and ecosystem protection in their sustainability or annual reports, only 25% considered nature-related issues material to their businesses.
Among the companies that made nature-related disclosures, Australia took the lead with 68% considered nature as material. This is followed by New Zealand (48%) and Singapore and Malaysia (both at 42%). South Korea ranked the lowest at 18%.
In the governance pillar, approximately 50% disclosed the role of their board and management in overseeing nature-related issues, signalling growing attention at the board and management level.
Across the strategy pillar, 75% acknowledged the impact of nature-related issues on their business strategies and 49% identified their effects on financial planning. However, only 25% of companies planned their strategy resilience in adapting different nature-related scenarios and even fewer companies, only 9% mentioned capital flows and financing opportunities, highlighting the need for greater capital allocation to address nature-related concerns.
Under the risk and impact management pillar, only 39% of the companies have integrated nature-related concerns into their overall risk management frameworks. But this trend is expected to grow as companies increasingly recognise the value of addressing such challenges to enhance their risk management practices. Notably, Singapore has the largest share (66%) of companies incorporating nature-related issues into their risk management practices, setting a benchmark in the region.
Less than 40% disclosed metrics for managing nature-related issues, and only 30% set specific targets in the metrics and targets pillar, reflecting gaps in accountability and oversight. These findings underscore the need for more comprehensive and actionable nature-related reporting to align with global standards and drive meaningful progress.
Early stages of TNFD framework adoption
The study found that only 13% of the 700 listed companies have disclosed their alignment with the TNFD framework, a comprehensive standard for nature-related reporting. This highlights that adoption remains in its early stages since the framework was introduced in 2023. As companies continue to evaluate nature-related issues, develop strategies, and gather necessary data, progress toward broader adoption is expected over time.
Marie-Claire Daveu, Chief Sustainability and Institutional Affairs Officer, Kering, said, “Voluntary actions won’t be enough to halt and reverse nature loss by 2030: like the work initiated for climate change, it is now imperative that nature-related issues are embedded into companies’ strategies for the long run; it is imperative for nature policies to be ambitious and progressive enough. Through this partnership we are conducting with Centre for Governance and Sustainability, NUS Business School, Kering contributes to delivering tangible facts and figures to help Asia-Pacific businesses build robust nature policies. With climate, biodiversity and fashion interlinked, companies need to move towards a nature-positive economy – and fast.”
Professor Lawrence Loh, Director, Centre for Governance and Sustainability, NUS Business School, said, “While there is growing recognition of nature-related issues in corporate sustainability strategies across Asia-Pacific, nature remains a nascent issue compared to climate. However, as climate reporting matures, integrating nature-related considerations into these frameworks is crucial for a comprehensive understanding of environmental risks. By aligning with global nature-reporting frameworks, companies can enhance their risk management, drive meaningful change, and contribute to a more sustainable future in an increasingly interconnected environmental landscape.”
Notes to editors
About Kering
A global Luxury group, Kering manages the development of a series of renowned Houses in Fashion, Leather Goods and Jewelry: Gucci, Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen, Brioni, Boucheron, Pomellato, DoDo, Qeelin and Ginori 1735, as well as Kering Eyewear and Kering Beauté. By placing creativity at the heart of its strategy, Kering enables its Houses to set new limits in terms of their creative expression while crafting tomorrow’s Luxury in a sustainable and responsible way. We capture these beliefs in our signature: “Empowering Imagination”.
About NUS Business School
The National University of Singapore (NUS) Business School is known for providing management thought leadership from an Asian perspective, enabling its students and corporate partners to leverage global knowledge and Asian insights.
The school has consistently ranked first in Asia by independent publications and agencies, such as The Financial Times, and Quacquarelli Symonds, in recognition of the quality of its programmes, faculty research and graduates.
The school is accredited by AACSB International (Association to Advance Collegiate Schools of Business) and EQUIS (European Quality Improvement System), endorsements that the school has met the highest standards for business education.
Established in 2010, the Centre for Governance and Sustainability (CGS) is part of the NUS Business School. Its mission is to spearhead high-impact research on corporate governance and sustainability in Singapore and the Asia-Pacific and serves as the national assessor for the corporate sustainability and governance performance of listed companies in Singapore.
In tandem with growing demands from consumers and investors that financial returns are achieved with integrity, backed with environmental and social considerations, CGS has a slew of research focusing on sustainability reporting in Asia Pacific, sustainable banking, nature reporting, and climate reporting in ASEAN.
More information about CGS can be accessed at https://bschool.nus.edu.sg/cgs/.
Media contacts:
Frank Chua Assistant Senior Manager, Corporate Communications NUS Business School Tel: +65 6601 2469 Email: frank.c@nus.edu.sg
Natalie Law Assistant Manager, Corporate Communications NUS Business School Tel: +65 6601 1206 Email: natalielaw@nus.edu.sg
Kering
Errial Chiu APAC office Email: errial.chiu@kering.com
Emmanuelle Picard-Deyme HQ office Email: emmanuelle.picard-deyme@kering.com