Making Nature Reporting Essential

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 If nature could speak, it would ask us to slow down, observe carefully, and think ahead. It would remind us that even if its reactions to human actions are not immediate, they are inevitable.
The effects of land use change, biodiversity loss, water pollution, and soil degradation often take years to fully surface. By the time we notice, the damage is deeply entrenched and difficult to reverse.
Because the damage takes a longer time to show, nature is always overlooked. We assume trees will regrow, rivers will naturally purify, and rain will come to break dry spells.
When floods subside or droughts end, we quickly slip back into our routines, forgetting just how vulnerable our ecosystems really are.
But these environmental disruptions are not one-off events; they are signs of deeper issues. That is why integrating nature into corporate decision-making is no longer optional, but imperative!
Environmental accountability through reporting
Nature reporting marks a major shift in how organisations interact with the environment. Although there is no single global framework yet, initiatives like the Science Based Targets for Nature (SBTN) and the Taskforce on Nature-related Financial Disclosures (TNFD) are helping to shape emerging standards.
Widely used frameworks such as the GRI Standards continue to guide sustainability reporting in many regions.
Newer initiatives like the TNFD and the Corporate Sustainability Reporting Directive (CSRD) are pushing this progress forward by helping companies understand, disclose, and act on their impacts and dependencies on nature.
Despite growing awareness, nature-related reporting remains mostly voluntary. Without legal requirements, many companies report only selectively or superficially, falling short of the transparency needed for real progress.
Making nature reporting mandatory would close this gap. It would ensure that businesses assess and manage their environmental risks consistently and openly. More importantly, it would move nature from the sidelines into the centre of corporate decision-making.
By institutionalising nature reporting, we shift from reacting to environmental crises to preventing them. It enables early action on slow-developing risks before they become unmanageable.
This is not just about meeting reporting requirements, but also about building resilience and supporting sustainable growth.
Nature-related dependencies
Nature-related dependencies are the elements of nature and ecosystem services that an organisation needs to function. These include both physical resources and natural processes that support day-to-day operations, either directly or indirectly.
For instance, a manufacturing company may rely on fresh water, raw materials like timber or minerals, and land for its facilities.
An agricultural business may depend on fertile soil, a stable climate, or ecosystem services like insect pollination and natural pest control.
Other ecosystem services that businesses often depend on include water purification, waste breakdown, and protection from floods and erosion.
When these natural systems are damaged, either by overuse, pollution, climate change, or habitat loss, it can lead to serious risks.
These risks might include higher costs, supply chain problems, damage to reputation, or limited access to key resources.
Understanding and assessing these dependencies is essential for managing environmental risks. It also helps organisations build long-term resilience, identify new opportunities, and use natural resources responsibly.
Nature reporting needs a boost
A study by French luxury group Kering and the Centre for Governance and Sustainability (CGS) at the National University of Singapore (NUS) revealed that just 13 percent of 700 major listed companies in the Asia-Pacific region have aligned their reporting with the TNFD.
The research analysed the annual and sustainability reports of the top 50 companies by market capitalisation across 14 Asia-Pacific economies.
The low uptake of TNFD highlights a significant shortfall in corporate action on nature-related risks despite growing environmental challenges and increasing pressure from investors and regulators for greater transparency on nature impacts.
Nature disclosure builds upon the established frameworks created for climate reporting, using comparable methods to measure, manage, and communicate environmental impacts.
This synergy provides companies with a clear and efficient way to broaden their sustainability efforts by integrating nature-related risks without having to develop entirely new processes.
As environmental challenges intensify and the connection between healthy ecosystems and business resilience becomes more evident, it is critical to make nature reporting a mandatory and standardised practice.
Failing to do so leaves companies vulnerable to increasing regulatory demands, heightened investor expectations, and the tangible risks posed by ecosystem decline. - Mkini
CHONG YEN MEE, a member of the UNFCCC Roster of Experts, is passionate about helping governments and organisations navigate climate policy, carbon accounting and sustainable strategy.
The views expressed here are those of the author/contributor and do not necessarily represent the views of MMKtT.

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