The International Sustainability Standards Board (ISSB) of the IFRS Foundation has announced plans to begin developing disclosure standards focused on nature-related risks and opportunities, with an initial draft expected by late next year.
This new initiative responds to growing investor demand for transparency on nature and biodiversity impacts. The ISSB has yet to decide whether the work will result in a standalone standard, amendments to existing ones, or another approach.
Launched in November 2021, the ISSB aims to provide investors with consistent and comparable sustainability information. Its first two standards—IFRS S1 (General Requirements) and IFRS S2 (Climate-related Disclosures)—were released in June 2023.
Under its 2024–2026 work plan, the ISSB is expanding its focus beyond climate, researching sustainability topics such as biodiversity, ecosystems, and ecosystem services (BEES). In developing its nature-related framework, the ISSB will leverage the Taskforce on Nature-related Financial Disclosures (TNFD) recommendations, including its Locate, Evaluate, Assess, Prepare (LEAP) approach.
The TNFD, which released its final recommendations in September 2023, outlines 14 key disclosures to help companies and investors better manage nature-related risks and opportunities. Over 730 companies and financial institutions, representing $9 trillion in market capitalization and $22 trillion in assets under management, have already committed to adopting the TNFD framework.
Earlier this year, the IFRS Foundation and TNFD formalized a collaboration to align efforts on nature-related financial reporting. In support, TNFD announced it will pause new technical guidance development to focus on assisting the ISSB’s nature-related work.
The ISSB expects to finalize its approach to standard-setting in the coming months, considering options such as new standards, amendments, or additional industry guidance. An exposure draft of the proposed disclosure requirements is targeted for release ahead of the Convention on Biological Diversity COP17 in October 2026.
