ISSB Confirms TNFD Framework as Basis for Nature Disclosure Standard

The ISSB approved a process to build a global nature-related financial reporting baseline drawing on the TNFD framework, announced in Sao Paulo ahead of COP30. Indian companies preparing sustainability disclosures should treat TNFD adoption as preparation for future ISSB nature-related reporting requirements aligned with IFRS S1.

The International Sustainability Standards Board approved a process to establish a unified global baseline for nature-related financial reporting, drawing on the Taskforce on Nature-related Financial Disclosures framework for technical guidance. Announced in Sao Paulo ahead of COP30, the decision leverages TNFD's disclosure recommendations, core global metrics, and the LEAP assessment methodology. The TNFD framework already builds upon IFRS S1 General Requirements. More than 730 organisations, covering over $22 trillion in assets under management, have voluntarily committed to adopting the TNFD recommendations.

The decision affects globally listed corporations, financial institutions, and asset managers whose investors seek information on nature-related risks and opportunities. Capital providers and investor portfolios benefit from greater transparency and consistency across markets. Companies already using TNFD recommendations gain alignment value, since the framework was confirmed to build on IFRS S1. Entities across sectors exposed to biodiversity and ecosystem dependencies will face incremental ISSB nature-related disclosure requirements, embedding nature risk into mainstream corporate financial reporting architecture worldwide.

Affected entities should continue using the complete TNFD framework for current disclosures to prepare for future mandatory ISSB requirements and IFRS S1 alignment. The ISSB targets publishing an Exposure Draft for public comment by the CBD COP17 meeting in October 2026. The TNFD will complete current technical work, including additional sector guidance, by the end of Q3 2026, then pause new guidance to support the ISSB standard-setting process. Preparers should monitor the forthcoming Exposure Draft.

Key figure — Voluntary adoption: over 730 organisations covering $22 trillion in assets under management committed to TNFD recommendations