The ISSB will be considering creating nature-related standards later this month. The international standard setter is seeing demand rise among investors for reliable and standardized nature-related risk disclosures. In November of last year, the organization committed to leveraging existing work from the Taskforce on Nature-related Financial Disclosures (TNFD) in developing its own standard. The ISSB staff have published a preliminary staff paper providing recommendations for the standard’s scope and outlining the ISSB’s general approach. The staff paper indicates that the ISSB is thinking big on nature disclosures, attempting to capture all nature-related risks and not limiting their focus to specific areas:
“Staff recommends that we proceed with nature-related standard-setting encompassing all nature-related risks and opportunities rather than limiting scope to a particular nature-related topic or industry, subject to the terms and definitions to be latern presented to the ISSB… This approach is similar to the approach used by the Taskforce for Nature-related Financial Disclosures (TNFD).”
The staff paper also clarifies that new nature-related disclosures will be designed to supplement and complement IFRS S1 and S2. This means that the ISSB will assume reporters using the new standard will also report under the previous two sustainability standards. Nature-related disclosures have been getting attention since late 2023, when the TNFD published its first framework. Since then, many believed it was only a matter of time before mandatory nature-related disclosures emerge. If the ISSB moves forward with a nature-based standard, that would provide serious momentum to nature-related disclosures.
Our members can learn more about nature-related disclosures here.
Members also save hours of research and reading time each week by using our filtered and curated library of ESG/sustainability resources covering over 100 sustainability subject areas – updated daily with practical and credible information compiled without the use of AI.
If you’re not already a member, sign up now and take advantage of our no-risk “100-Day Promise” – during the first 100 days as an activated member, you may cancel for any reason and receive a full refund. But it will probably pay for itself before then.
Practical Guidance for Companies, Curated for Clarity.
