During its April board meeting in Beijing, the International Sustainability Standards Board (ISSB) agreed to propose requirements for nature-related disclosures through an IFRS Practice Statement. The move is designed to guide companies in reporting on nature-related risks and opportunities without altering existing standards.
The proposed Practice Statement is intended to complement IFRS S1 (General Requirements) and IFRS S2 (Climate-related Disclosures). While IFRS S1 already mandates that companies disclose material information regarding sustainability-related risks—including those linked to nature—the new guidance will explain precisely how to provide that information. This approach aims to minimise disruption for jurisdictions and firms currently in the midst of implementing the initial ISSB Standards.
“Providing material nature-related disclosures is not optional; IFRS S1 already requires that,” said Emmanuel Faber, ISSB Chair. “A Practice Statement will guide companies on how to provide such disclosures.”
The development follows extensive work by the ISSB to identify material nature-related information, drawing significantly on the Taskforce on Nature-related Financial Disclosures (TNFD) framework. Faber noted that while the Practice Statement provides a pathway to future standard-based outcomes, it will have the “full effect of an ISSB Standard” for those companies that apply it.
The ISSB expects to publish an exposure draft for public comment in October 2026. This will allow global stakeholders to provide feedback on the proposed requirements and whether a Practice Statement is the most effective format for nature-related standard-setting.
