🤝 A Collaborative Effort
In a significant move for environmental accountability, the International Sustainability Standards Board (ISSB) has announced its collaboration with the Taskforce on Nature-related Financial Disclosures (TNFD). The TNFD will complete its current technical work by Q3 2026 and pause any further technical guidance work. This decision aligns with the ISSB’s goal to enhance nature-related risk disclosures by leveraging the TNFD framework.
🌍 Meeting Investor Needs
The ISSB's initiative is driven by the increasing demand from investors for comprehensive information on nature-related risks and opportunities. The new standards will build on existing requirements in IFRS S1 and IFRS S2, ensuring that all aspects of nature are covered. The approach will be subject to public consultation, allowing stakeholders to provide feedback and shape the final guidelines.
📜 What's Next for Standard-Setting?
The ISSB will explore various options for standard-setting, including application guidance, amendments to existing standards, industry-specific guidance, or even the creation of a new standard. The goal is to create a cohesive framework that integrates seamlessly with current ISSB Standards. Educational materials will also be developed to help companies understand and apply the new requirements.
🌿 Leveraging the TNFD Framework
The ISSB will utilize the TNFD’s non-siloed approach to nature, which covers all aspects rather than focusing on sub-topics. This includes adopting the TNFD's recommendations, metrics, and the LEAP (Locate, Evaluate, Assess, Prepare) approach. ISSB Chair, Emmanuel Faber, emphasized the importance of this collaboration, stating, > "Drawing on the TNFD framework enables us to meet investor needs efficiently, reducing fragmentation and building on leading practice."
