ISSB Begins Nature-Related Disclosure Standard Setting with Draft Expected by Late 2026

The International Sustainability Standards Board has announced that it will begin standard-setting work for nature-related disclosure requirements, drawing on the Taskforce on Nature-related Financial Disclosures framework, with an exposure draft targeted for release by the Convention on Biological Diversity COP17 in October 2026. The ISSB has not yet determined whether it will develop a new standalone standard or amend its existing IFRS S1 and S2 standards.

The ISSB's move into nature-related standard setting follows its 2024-2026 work plan, which included researching sustainability topics beyond climate, specifically biodiversity, ecosystems and ecosystem services. The ISSB said it will draw on the TNFD's 14 recommended disclosures and its Locate, Evaluate, Assess, Prepare approach as the foundation for its work. More than 730 companies and financial institutions with over $9 trillion in market capitalisation and $22 trillion in assets under management have already committed to adopt the TNFD recommendations.

The TNFD published its final recommendations in September 2023, centred around 14 recommended disclosures for nature and biodiversity-related risks, opportunities, dependencies and impacts. ISSB Chair Emmanuel Faber noted that there is a clear investor need for information about nature-related risks and opportunities, and that drawing on the TNFD framework enables the ISSB to meet that need efficiently while reducing fragmentation. The move mirrors the ISSB's earlier takeover of the TCFD's role following the launch of the climate-focused IFRS S2.

For Indian companies, particularly those in agriculture, forestry, fishing, water-intensive industries and biodiversity-sensitive sectors, the development of ISSB nature standards will introduce new mandatory disclosure requirements as jurisdictions adopt the ISSB framework. India is a biodiversity megadiverse country with significant nature-linked economic activity, making nature-related financial risk disclosures particularly relevant for companies across sectors including FMCG, pharma, mining and real estate. The TNFD's LEAP framework, which underpins the ISSB's work, provides a practical starting point for companies to begin assessing nature dependencies.

Key figure — Exposure draft of nature disclosure requirements targeted for COP17 in October 2026