ISSB Agrees on the Proposed Way Forward for Nature-Related Disclosures

ISSB Agrees on the Proposed Way Forward for Nature-Related Disclosures

On 22 April 2026, the International Sustainability Standards Board (ISSB) agreed on its proposed way forward for nature-related financial disclosures, signalling the next phase of its sustainability standards programme beyond IFRS S1 General Requirements and IFRS S2 Climate-related Disclosures.

Why Nature Is on the ISSB's Agenda

While climate has dominated the sustainability reporting conversation since TCFD's launch in 2017, investors and regulators have increasingly recognised that biodiversity loss, ecosystem degradation, and natural capital depletion carry material financial risks for a wide range of industries — from agriculture and food to pharmaceuticals, mining, and financial services.

The Taskforce on Nature-related Financial Disclosures (TNFD), which published its final recommendations in September 2023, established a parallel architecture to TCFD: four pillars (Governance, Strategy, Risk & Impact Management, and Metrics & Targets) applied specifically to nature-related risks and opportunities. The TNFD framework has been adopted voluntarily by hundreds of organisations globally and was endorsed by the G7 and G20 as the primary vehicle for nature-related reporting.

The ISSB's decision builds directly on this momentum and on the interoperability commitment it has made with other sustainability frameworks.

What the ISSB Has Agreed

The ISSB's proposed way forward involves developing nature-related disclosure requirements that:

• Build on and are interoperable with the TNFD framework, avoiding duplication for entities already reporting under TNFD recommendations
• Apply the same four-pillar architecture as IFRS S1 and IFRS S2, ensuring structural consistency across the ISSB's standards suite
• Maintain the enterprise value focus of IFRS S1 and S2 — disclosures are designed to help investors assess financial risks and opportunities, not to produce a comprehensive environmental impact report
• Address sector-specific requirements for the industries most exposed to nature dependencies and impacts, informed by TNFD's sector guidance and SASB Standards

Connection to IFRS S1 and S2

Entities already applying IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information will find that the nature disclosures framework is designed to slot into the same reporting structure. IFRS S1 already requires entities to disclose material sustainability risks and opportunities beyond climate — nature-related risks that are currently considered material must already be disclosed under IFRS S1, even before a specific nature standard exists. The forthcoming requirements will provide the specific metrics, scenario analysis guidance, and sector-specific indicators that IFRS S1 leaves to preparers' judgement today.

Timeline and Next Steps

The ISSB's agreement on the way forward does not yet constitute an Exposure Draft or a final standard. The next steps typically involve:

1. Research and stakeholder outreach phase 2. Publication of an Exposure Draft (ED) open for public comment 3. Redeliberation and finalisation

Based on the ISSB's pace with IFRS S2 and its stated commitment to moving efficiently, an Exposure Draft could emerge in late 2026 or 2027. Entities preparing transition plans should monitor ISSB updates closely.

Who Should Pay Attention Now

• Agriculture, food and beverage, and consumer goods companies with significant land use and water dependency
• Mining, oil & gas, and chemicals companies with direct ecosystem impacts
• Financial institutions — banks, asset managers, and insurers — with portfolio exposure to nature-dependent sectors
• Pharmaceutical and biotech companies dependent on genetic resources and biodiversity
• Any entity already applying TNFD recommendations, as ISSB alignment will be high

Practical Takeaway

Companies that begin engaging with the TNFD framework now — conducting LEAP (Locate, Evaluate, Assess, Prepare) assessments, mapping nature dependencies in their value chains, and building internal data capabilities — will be best positioned when ISSB requirements become mandatory. The cost of building nature-related data infrastructure from scratch once a standard is issued will be substantially higher than starting the process now.