ISSB starts standard-setting process for nature disclosures as 700+ companies adopt TNFD framework

The International Sustainability Standards Board (ISSB) will begin creating standards for corporate nature disclosures as more than 700 companies have already adopted the recommendations of the Taskforce on Nature-related Financial Disclosures (TNFD).

ISSB says that in response to investor needs, it will start introducing “incremental disclosure requirements” on nature-related risks and opportunities not already reflected in IFRS S1 and IFRS S2, its existing sustainability disclosure standards.

The news was welcomed by TNFD, whose work helping companies voluntarily identify, measure and disclose nature-related impacts will serve as a basis for ISSB’s standard-setting process. It will continue to support ISSB’s technical work – with the goal of having an exposure draft ready by the Convention on Biological Diversity (CBD) COP17 meeting 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.

“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.”

TNFD recommendations adopted by 733 firms

Since the launch of the TNFD recommendations in 2023, 733 organisations have adopted the framework, representing over US$9 trillion in market capitalisation and over US$22 trillion in assets under management.

This is up 46% since the last Biodiversity COP in November 2024. More than 100 of these organisations joined in the last couple of months as part of a pre-COP30 adoption campaign launched in March.

As happened with the Taskforce on Climate-related Financial Disclosures (TCFD), it is expected that TNFD will gradually hand its work over to ISSB over the next few months, eventually ceasing its technical work programme as nature disclosures become an integral part of standardised sustainability reporting.

The taskforce will therefore seek to complete the technical work it currently has in progress by Q3 2026, but will not start any further technical guidance work after ISSB’s exposure draft is published.

“This week’s announcement by the ISSB is an important step towards nature being considered and embedded in an integrated way into the global foundations of corporate reporting. 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,” commented David Craig, TNFD Co-Chair.