The International Sustainability Standards Board plans to take up the activities of the Taskforce on Nature-related Financial Disclosures after the TNFD completes the technical work it currently has in progress by the third quarter of 2026.
The TNFD then plans to pause the commencement of any further technical guidance work as the ISSB takes up the mantle. The two organizations made the announcement Friday in response to the board's decision to advance its own work to meet investors' information needs through disclosures about nature-related risks and opportunities, while drawing on the TNFD framework.
In response to the needs identified by investors, the ISSB intends to undertake standard-setting to introduce incremental disclosure requirements on nature-related risks and opportunities that aren't already reflected in the explicit requirements in its existing IFRS S1 and IFRS S2 sustainability and climate-related disclosure standards.
The arrangement with the TNFD reflects the increasing consolidation of sustainability standards under the ISSB.
The
'The ISSB recognizes that there is a clear investor need for information about nature-related risks and opportunities," said ISSB chair Emmanuel Faber in a statement Friday. "Drawing on the TNFD framework enables us to meet this need efficiently, reducing fragmentation and building on leading practice. We welcome TNFD's decision to complete the technical work it currently has in progress and then to pause and provide its support as we advance the global baseline where it relates to nature through the ISSB. I encourage market participants to continue using the TNFD framework. This will help them prepare disclosures in accordance with IFRS S1 and prepare for meeting future incremental ISSB disclosure requirements."
The ISSB plans to settle on its approach to standard-setting in the coming months with options including a mix of application guidance or amendments to existing ISSB standards, industry-based guidance, additional sources of guidance or a new standard. The work will be subject to public consultation in accordance with the IFRS Foundation's due process.
After the standard-setting, the board expects to develop any necessary educational materials to explain how to apply the requirements in its standards in the context of providing material nature-specific information.
To deliver this work, the ISSB will draw on the TNFD framework and its non-siloed approach to nature, covering all aspects of nature rather than sub-topics. The board will draw on TNFD's recommendations, metrics and guidance, including the "Locate, Evaluate, Assess, Prepare," or LEAP, approach as appropriate.
The ISSB aims to have an exposure draft of incremental disclosure requirements ready by the Convention on Biological Diversity COP17 in October 2026.
The ISSB has signaled it plans to introduce new or modified disclosure requirements to meet common investor information needs following the findings of its biodiversity, ecosystems and ecosystem services research considering nature-related risks and opportunities.
The ISSB announcement comes as the TNFD also announced in São Paulo, Brazil ahead of the United Nations COP30 climate conference that voluntary market adoption of the TNFD recommendations now stands at 733 organizations, over $9 trillion in market capitalization among listed companies and over $22 trillion in assets under management. ISSB standards are being adopted or otherwise used in nearly 40 jurisdictions around the world.
"This week's announcement by the ISSB is an important step toward nature being considered and embedded in an integrated way into the global foundations of corporate reporting," said TNFD co-chair David Craig in a statement. "It will help shift the mindset across business about nature as a source of risk, resilience and value, and help inform better strategy, risk management and capital allocation decision making across economies. That is important for the resilience of the planet and the resilience of businesses and capital portfolios everywhere."
