The International Sustainability Standards Board (ISSB) is preparing to assume responsibility for establishing standards for disclosures on nature-related risks and opportunities, utilising the Taskforce on Nature-related Financial Disclosures (TNFD) framework.
The ISSB will introduce incremental disclosure requirements on nature-related risks and opportunities that are not already covered by explicit requirements in IFRS S1 and IFRS S2, its standards for general sustainability and climate disclosures respectively.
The ISSB’s work will draw on the TNFD framework, including its recommendations, metrics, guidance, and the Locate, Evaluate, Assess, Prepare (LEAP) approach.
The move, welcomed by the TNFD, will continue coordinated efforts to provide investors with consistent information on nature-related risks, opportunities, dependencies and impacts on a voluntary basis. Adoption is expected by major jurisdictions many of which are in the process of aligning with IFRS S1 and S2.
The ISSB is targeting the release of an exposure draft for the incremental disclosure requirements by the Convention on Biological Diversity’s COP17 in October 2026.
“The ISSB recognises that there is a clear investor need for information about nature-related risks and opportunities. Drawing on the TNFD framework enables us to meet this need efficiently, reducing fragmentation and building on leading practice,” said ISSB Chair Emmanuel Faber.
The TNFD will conclude its technical guidance work by the third quarter of 2026 and then pause, focusing additional technical efforts on supporting the ISSB’s work program.
Market participants are encouraged to continue using the TNFD framework when working on IFRS S1 disclosures and prepare for future incremental ISSB disclosure requirements.
The TNFD also recently released new guidance on nature in transition planning, aimed at helping organisations to align with goals and targets of the Global Biodiversity Framework (GBF).
Furthermore, the TNFD has issued recommendations for upgrading the nature data value chain for market participants. These recommendations include a blueprint for a Nature Data Public Facility (NDPF) to provide open access to state-of-nature data and generate new funding for its collection.
Voluntary market adoption of TNFD recommendations has now increased to 733 organisations, representing more than US$9 trillion in market capitalisation and more than US$22 trillion AUM.
