The IFRS Foundation and the Taskforce on Nature-related Financial Disclosures (TNFD) have signed a Memorandum of Understanding (MoU) to strengthen collaboration and support the development of global standards for nature-related financial reporting.
The agreement marks a significant step in aligning the work of the International Sustainability Standards Board (ISSB) with the TNFD’s recommendations, aiming to provide clearer, more consistent nature-related disclosures for capital markets worldwide.
The ISSB, which has worked closely with the TNFD since its launch in 2021, will now formally consider the TNFD’s recommendations as it explores how businesses report on risks and opportunities linked to nature and biodiversity. This includes ongoing support from TNFD for the ISSB’s Biodiversity, Ecosystems and Ecosystem Services (BEES) research project.
Speaking after the agreement was signed in Frankfurt, Erkki Liikanen, Chair of the IFRS Foundation Trustees, said: “We are delighted to be formalising our partnership with TNFD to ensure that the ISSB gives due consideration to the work TNFD have put into creating recommendations for nature-related financial disclosures. Transparency and accountability are a key means of enabling more stable, resilient and efficient capital markets.”
Sue Lloyd, Vice-Chair of the ISSB, added: “Our collaboration with the TNFD is a clear signal to the market that we are committed to reducing fragmentation in sustainability disclosure. Strengthening the global baseline of sustainability disclosures with nature-related disclosures is a core focus of our work.”
David Craig, Co-Chair of the TNFD, said the partnership will help shape meaningful corporate reporting on nature beyond greenhouse gas emissions. “We welcome this deepened collaboration with the ISSB to inform their evolving sustainability reporting standards,” he said. “One of the objectives of the TNFD is to help achieve Target 15 of the Kunming-Montreal Global Biodiversity Framework.”
Razan Al-Mubarak, TNFD Co-Chair, President of the IUCN and former COP28 Champion, highlighted the importance of integrating nature into business reporting. “Nature is essential to our economies and our future. Stronger standards mean stronger businesses—and a healthier, more resilient planet for all of us,” she said.
Under the MoU, the ISSB and TNFD will share research, technical expertise and data to support both the ISSB’s BEES initiative and nature-related updates to its SASB standards. They also plan joint efforts to engage the market and build capacity across sectors.
Future work by the ISSB on nature-related reporting will follow the IFRS Foundation’s due process, including public consultations before any new standards are adopted.
Meanwhile, the TNFD will continue engaging with global markets and pilot new guidance to help organisations disclose their impacts and dependencies on nature more effectively.
