The International Sustainability Standards Board (ISSB) is targeting October 2026 for the publication of an Exposure Draft detailing its new nature-related disclosure proposals. ISSB Vice-Chair Sue Lloyd outlined the framework during her address to the IFRS Foundation Conference in London, following the finalisation of the board’s decision-making process last week.
The proposed framework is being developed as a Practice Statement designed to complement the existing IFRS S1 and IFRS S2 standards. To ensure global alignment and reduce market fragmentation, the ISSB has drawn heavily on the Taskforce on Nature-related Financial Disclosures (TNFD) framework. The tool will be voluntary for companies seeking to meet investor demand for nature-related information, though individual jurisdictions retain the power to mandate its use.
Lloyd explained that the decision to introduce a Practice Statement rather than an immediate mandatory standard aims to support improved reporting without overloading businesses and regulators currently focused on embedding climate disclosures. However, the board noted that developing these proposals as a Practice Statement leaves the door open for a formal, binding standard in the future.
