SA's nature risk is mounting, but JSE companies are not keeping pace

These are among the findings of Fast-tracking Finance for Nature: Trends in Nature-related Financial Disclosures of South African Companies," a new report by WWF South Africa. The results are troubling, particularly against a global backdrop in which 620 organisations, representing over $20tn in assets under management across more than 50 countries, have already committed to TNFD-aligned disclosures, with over 500 reports already published.

The stakes are high

"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 business impacts on nature. Yet without nature, there simply is no business."

"Nature underpins the physical, operational and financial foundations of every business value chain," she continues. "To do business, companies rely on ecosystem services such as safe and sufficient water, healthy soils, pollination, raw materials and biomass, and a stable climate. When these systems are disrupted, the impacts are immediate: higher input costs, reduced productivity, operational interruptions and lower yields."

Yet globally, the World Economic Forum ranks biodiversity loss and ecosystem collapse as the second greatest long-term risk to economies, after extreme weather events. In the first half of 2025 alone, natural catastrophes resulted in $162bn in economic losses worldwide. And with only a few years left until the 2030 deadline set by the Kunming-Montreal Global Biodiversity Framework, the international accord that aims to halt and reverse biodiversity loss globally, the pressure on businesses to act is mounting.

"We cannot manage what we do not measure," says Pillay. "And right now, most South African companies are not measuring nature at all."

Awareness is not enough

While most of the assessed companies were aware of the TNFD recommendations, awareness is not translating into action. Climate-related disclosures are more mature across all sectors assessed, but nature, despite being equally critical to long-term business resilience, remains an afterthought. None of the assessed companies clearly disclosed their governance of nature-related dependencies, impacts, risks or opportunities, and not a single South African bank has formally adopted the TNFD framework.

"Remuneration committees are approving KPIs for climate action, but not a single company has tied executive pay to nature-related metrics," says Pillay. "That tells you everything about where nature sits in the corporate priority list."

This is particularly concerning at a time when investors globally are paying close attention. According to the TNFD's own 2025 Status Report, 63% of respondents globally believe their nature-related risks are as significant, or more significant, to their future financial prospects as their climate-related risks. And 77% of asset managers and asset owners want a dedicated nature standard based on TNFD recommendations. "Transparent companies are better positioned to access capital, build investor confidence and avoid liabilities as well as regulatory shocks," notes Pillay.

The regulatory horizon is shifting

The pressure is not only coming from investors. South African regulators are expected to adopt IFRS S1 and S2 – the international sustainability disclosure standards that require companies to report on sustainability-related risks, including nature, and how these affect their financial performance. For many large South African companies, mandatory nature-related disclosures could soon be a legal requirement rather than a voluntary choice.

The King V Code on Corporate Governance, which came into effect on 1 January 2026, reinforces the expectation that company boards take an active role in overseeing nature-related risks and opportunities. Together, these developments signal a clear direction of travel. Companies that wait for regulation to force their hand risk being caught flat-footed.

The tools exist, but the will must follow

"There is no shortage of tools to help businesses act," points out Pillay. "Consistent public disclosure transforms sustainability from a narrative into decision-useful information, enabling investors to price risk accurately and allowing customers, regulators and communities to scrutinise claims. It also marks a shift away from typical corporate social investment storytelling toward robust business risk management."

The TNFD recommendations provide businesses with a practical roadmap for integrating nature-related risks and opportunities into their business models. By building on existing climate governance structures, companies can fast-track their nature-related disclosures without starting from scratch. Pillay recommends that companies embed nature oversight in board charters, link executive pay to nature-related metrics, and apply the TNFD's Locate, Evaluate, Assess and Prepare (LEAP) approach across their value chains.

She stresses that there is an opportunity to transform how organisations understand their relationship with nature. “We need a financial system that recognises the natural world not as an externality, but as a foundational asset on which all economic prosperity depends.” WWF has recently released a third report in the “Financing Nature” series. Titled Nature Finance in South Africa: Taking the leap from framework to practice, this report provides practical insights into the LEAP approach and two sector-specific examples for mining and agriculture.

"By acting on, managing and disclosing nature-related risks, South African companies can support a shift in global finance flows away from nature-negative outcomes toward nature-positive ones," concludes Pillay.

Both reports in the Financing Nature series are available in full at WWF South Africa.