Reporting Intelligence – May 2025
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This month, we explore IFRS-TNFD nature disclosure collaboration, CDP’s environmental scoring data, the FRC’s digital reporting guidance, and the EU Commission’s call for SFDR revision evidence.
IFRS and TNFD unite to strengthen nature-related Financial Reporting
The IFRS Foundation and Taskforce on Nature-related Financial Disclosures (TNFD) have formalised their collaboration to enhance nature-related financial disclosures.
This partnership will integrate TNFD’s recommendations into the IFRS’ International Sustainability Standards Board (ISSB) work. TNFD published its final recommendations in September 2023, with over 1,700 organisations joining as members and 520+ companies committing to nature-related reporting.
The ISSB, launched in 2021, released its first sustainability standards in 2023. Under this agreement, both organisations will share research and expertise to inform ISSB’s biodiversity, ecosystems and ecosystem services initiative, while exploring joint market engagement opportunities.
Read more here
CDP’s annual assessment reveals a 30% jump in companies achieving A” scores
CDP reports a 30% increase in companies achieving “A” scores in 2024, though these top performers represent just 2% of all disclosing companies. A record 22,700+ companies participated (up 8%), with 515 reaching A List status compared to 396 in 2023.
Climate A-scores rose 33% to 462 companies, Water Security A-scores increased 32% to 133, while Forests A-scores slightly decreased to 26%. Research shows A List companies average 6% higher stock returns over the past decade. Only 8 companies achieved “Triple A” status across all categories. Regionally, Asia led in climate and water A-scores, while Europe dominated in forests.
Discover more about CDP scores here
FRC publishes 2024/25 insights on structured digital reporting
The Financial Reporting Council has published its annual review of structured digital reporting, highlighting improvement areas for UK-listed companies’ digital Annual Reports. While basic errors from previous years have been resolved, companies still struggle with complex aspects of digital reporting. iXBRL-formatted Digital Annual Reports have been mandatory for listed companies since 2021.
The FRC analysed reports across the market using CODEx project tools, including detailed assessments of 25 annual reports filed in 2024. Guidance addresses persistent challenges such as inappropriate custom tags, misapplied tags from irrelevant accounting standards, and design issues affecting usability.
Discover more insights here
EU Commission seeks input on SFDR revision
The European Commission has launched a call for evidence to revise the Sustainable Finance Disclosure Regulation (SFDR). Despite strong support for SFDR’s objectives since its 2021 implementation, challenges include legal ambiguity, limited disclosure relevance and inconsistencies with other EU sustainable finance frameworks.
The review aims to simplify key concepts, streamline disclosure requirements and potentially introduce new categories reflecting products’ sustainability objectives. Concerns exist that Article 8 and 9 classifications have become de facto sustainability labels, raising greenwashing risks.
The consultation remains open until 30 May 2025, with publication of revisions expected in Q4 2025.
Access the call for evidence here
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