Nature Risk is Business Risk: What Malaysian Companies Need to Know About TNFD

At Q3 Management Solutions, we view nature-related risks not as mere environmental concerns, but as subtle business threats. This perspective aligns closely with the key messages shared by Tony Goldner, CEO of the Taskforce on Nature-related Financial Disclosures (TNFD), during the first session of the CGM Conversations series held on 9 May 2025. His message was clear: businesses need to stop treating nature as a side issue and start recognising it as a core part of their operational and financial resilience.

The TNFD framework emphasises that nature affects your business more than you might think. Weather patterns, water supply, soil health—all these natural systems play a crucial role in keeping your operations running smoothly. When these systems break down or are disrupted, they impact supply chains, production schedules, and ultimately reduce profitability.

For instance, Tesla recently faced significant challenges at its Gigafactory in Germany when groundwater contamination issues led to regulatory hold-ups and construction delays. This environmental risk translated directly into a drop in Tesla’s share price, showing how naturerelated problems can erode investor confidence and company value.

Similarly, Pacific Gas & Electric (PG&E) in the U.S. declared bankruptcy in early 2019 after being held responsible for catastrophic wildfires linked to poor land management and infrastructure vulnerabilities. These real-world examples highlight why understanding and managing naturerelated risks is essential for protecting your business and sustaining long-term value

At this point, you might be wondering—“Is TNFD just another new sustainability framework I need to follow?” We get it. With so many acronyms floating around—TCFD, GRI, ISSB—it’s easy to feel like you’re drowning in reporting requirements. But here’s the good news: TNFD isn’t here to add more pressure. It’s here to make things clearer, especially when it comes to nature-related risks that many companies are still unsure how to address.

In fact, TNFD is designed to work with what’s already required. For example, the IFRS S1 standard already expects companies to report on all material sustainability risks, including nature. But it doesn’t tell you how to do that. That’s where TNFD steps in. It provides a practical way to identify those nature risks and decide what’s relevant to disclose.

TNFD offers a practical approach through its LEAP framework: Locate, Evaluate, Assess, Prepare. It’s essentially a structured method to help you figure out where your business depends on nature, how it could be exposed to related risks, and what steps to take. For Malaysian companies, especially those in sectors like agriculture, manufacturing, logistics, and utilities, this can be the difference between reacting to disruptions and preparing for them.

At Q3 Management Solutions, we’re already working with businesses to localise these global frameworks. We’re helping leaders understand what nature risk really looks like in the Malaysian context—from water stress and land use to biodiversity concerns. And we’re turning that insight into action, whether it’s through capacity building or embedding nature-related risks into your sustainability roadmap

Because at the end of the day, it’s about protecting your business. As investors get more vocal and ecosystems become more fragile, the companies that take proactive steps today will be the ones that thrive, adapt, and earn lasting trust. If you’re unsure where to begin, that’s where we come in. Let’s have a conversation about how Q3 Management Solutions can help you future proof your organisation by treating nature as a business priority, not an afterthought