The International Sustainability Standards Board (ISSB) has launched a public consultation on its proposed framework for nature-related financial disclosures, inviting market feedback through 19 February 2027.
The proposals aim to establish global guidelines for corporate reporting on material nature-related risks and opportunities, including how business dependencies and operational impacts on natural ecosystems affect financial prospects.
Building on the foundation of IFRS S1, the proposed framework is structured to prevent siloed reporting, enabling institutional investors to evaluate the interplay between nature-related factors, climate risks, and primary financial statements.
Key structural and technical elements of the proposed framework include:
- Alignment with TNFD framework: Integrates core elements of the Taskforce on Nature-related Financial Disclosures, placing explicit emphasis on location-specific factors and engagement with Indigenous Peoples and local communities.
- Practice statement format: Issued as a voluntary Practice Statement subject to full due process, providing operational parity with formal Standards while allowing jurisdictions to adopt IFRS S1 and IFRS S2 without immediate mandatory add-ons.
- Interoperability standards: Designed for seamless application alongside Global Reporting Initiative (GRI) standards and European Sustainability Reporting Standards (ESRS) to eliminate redundant reporting burdens for multinational firms.
- Format flexibility feedback: Seeks stakeholder input on whether to maintain the content as a Practice Statement or formalise it into a mandatory IFRS Sustainability Disclosure Standard.
ISSB Chair Emmanuel Faber noted that corporate reliance on natural capital—such as freshwater access and pollination—presents material operational and financial risks that require consistent, high-quality disclosure to capital markets.
ISSB Vice-Chair Sue Lloyd added that introducing a Practice Statement balances investor demand for nature disclosures with the operational realities of companies currently implementing baseline climate standards.
David Craig, Co-Chair of the TNFD, welcomed the publication, stating that incorporating TNFD recommendations into the ISSB framework reinforces global convergence in nature-related financial reporting.
