ISSB staff paper assesses human capital and biodiversity standard-setting

The International Sustainability Standards Board released a December 10, 2025 staff paper assessing the feasibility of new standards on human capital and biodiversity beyond climate disclosures. As ISSB sets the global baseline, Indian companies face the prospect of more granular workforce and nature-related reporting requirements.

The International Sustainability Standards Board released a staff paper on December 10, 2025, outlining research findings on Human Capital and Biodiversity. The document assesses the necessity and feasibility of new standard-setting to expand the global baseline beyond climate disclosures, citing investor demand for decision-useful information on workforce management and ecosystem dependencies. The research follows the board's 2023 consultation on future priorities, signaling a transition toward formalizing more granular non-financial reporting requirements across global capital markets.

The proposed standards affect companies across industries with material workforce and nature dependencies. The Human Capital research covers diversity, equity, inclusion and worker health and safety, noting labor-related risks and talent development influence entity value. The Biodiversity, Ecosystems and Ecosystem Services research identifies financial risks from nature loss, water scarcity and operational disruptions. The ISSB intends to leverage the Taskforce on Nature-related Financial Disclosures, SASB Standards and the GRI framework to ensure global comparability and reduce reporting burden.

Companies should prepare for more granular ESG compliance requirements demanding better internal data systems for workforce metrics and nature-related dependencies. The staff paper concludes standard-setting is both necessary and technically feasible given existing market-led initiatives. Entities should monitor how the board prioritizes disclosures linking dependencies on nature and people to material financial risk, and consider early adoption, which the paper suggests could reduce the cost of capital and enhance reputation as voluntary reporting ends.

Key figure — Publication date: ISSB staff paper released December 10, 2025