Stockholm (NordSIP) – Following the announcement of the International Sustainability Standards Board’s (ISSB) decision to begin developing its own standard on nature-related risks and opportunities, the Taskforce on Nature-related Financial Disclosures (TNFD) will effectively stop developing reporting rules. The decision is motivated by the fact that the ISSB will be following TNFD’s disclosure recommendations, metrics, and guidance, including aspects of the LEAP approach. The ISSB aims to introduce new or revised disclosure requirements to better meet investor needs, following its Biodiversity, Ecosystems, and Ecosystem Services (BEES) research. Instead
“This week’s announcement by the ISSB is an important step towards nature being considered and embedded in an integrated way into the global foundations of corporate reporting. It will help shift the mindset across business about nature as a source of risk, resilience and value, and help inform better strategy, risk management and capital allocation decision making across economies. That is important for the resilience of the planet and the resilience of businesses and capital portfolios everywhere,” David Craig, Co-Chair of the TNFD said on this occasion.
The Future of Nature Under the ISSB
The ISSB has set a target to release an Exposure Draft by the COP17 meeting of the Convention on Biological Diversity in October 2026. The Taskforce expressed support, emphasising its ongoing commitment to assist the ISSB as it advances its work on nature-related disclosures. The ISSB’s confirmation that its standards build on the IFRS S1 Standard — which already addresses nature-related risks — further underscores the alignment and value of early TNFD adoption. This alignment helps companies prepare for upcoming jurisdictional reporting requirements aligned with ISSB standards and supports consistent disclosure practices.
“The ISSB recognises that there is a clear investor need for information about nature-related risks and opportunities. Drawing on the TNFD framework enables us to meet this need efficiently, reducing fragmentation and building on leading practice. We welcome TNFD’s decision to complete the technical work it currently has in progress and then to pause and provide its support as we advance the global baseline where it relates to nature through the ISSB. I encourage market participants to continue using the TNFD framework. This will help them prepare disclosures in accordance with IFRS S1 and prepare for meeting future incremental ISSB disclosure requirements,” Emmanuel Faber, Chair of the ISSB added.
Similar to climate disclosures aligned with the TCFD, companies and financial institutions are encouraged to start assessing and reporting their nature-related impacts now, as investors increasingly consider these disclosures crucial. The TNFD will continue to support market capacity-building and aims to develop additional sector guidance by Q3 2026, before focusing solely on supporting the ISSB’s ongoing standard-setting activities.
Upon completion of the ISSB standards — anticipated in 2027 — the TNFD plans to conclude its technical work, though it will persist in raising awareness and developing practical solutions to nature data challenges globally. With ISSB standards already adopted or used in nearly 40 jurisdictions worldwide, this move marks a significant step toward mainstreaming nature-related disclosure in corporate reporting, ultimately bolstering investor confidence and the resilience of both portfolios and companies.
Adoption of TNFD Recommendations Remains Robust
This development coincides with the TNFD’s announcement in São Paulo, Brazil, ahead of COP30, that voluntary adoption of TNFD recommendations has reached 733 organisations, covering over US$ 9 trillion in market capitalisation and more than US$D 22 trillion in assets under management (AUM).
This marks a 46% increase in market commitment to TNFD-aligned reporting since the CBD COP16 in Cali, Colombia in November 2024. The joint momentum signals a growing recognition of the importance of integrating nature-related issues into corporate disclosures.
The TNFD’s membership covers 45 Nordic organisations, including Norges Bank Investment Management (NBIM), KLP, Storebrand, AP3 and AP7, Ørsted, Evli and Varma. “We very much welcome the ISSB’s efforts to further analyse how to integrate nature-related disclosures into the global baseline of sustainability standards. As long-term investors, we need harmonised and financially relevant reporting on nature to inform our ownership and investment decisions. TNFD’s work has been instrumental in building the foundation for nature-related disclosures, and we will continue to support both TNFD and ISSB as they work together,” Carine Smith Ihenacho, Chief Governance & Compliance Officer at NBIM said.
