ISSB to Issue Nature‑Specific Disclosure Rules Building on IFRS S1, S2 and TNFD
The International Sustainability Standards Board (ISSB) will consult on new nature‑related disclosure requirements that extend existing IFRS S1/S2 standards and incorporate the TNFD framework.
The ISSB has announced ongoing consultations for a set of nature‑specific disclosure requirements that would integrate and expand the existing ESG reporting framework provided by IFRS S1 (Climate‑Related Financial Disclosures) and IFRS S2 (Tobacco‑Related Financial Disclosures) and align closely with the Taskforce on Nature-related Financial Disclosures (TNFD). The proposed standards aim to capture a company’s impacts, dependencies and opportunities linked to natural capital, mandating detailed information on biodiversity loss, habitat degradation, and nature‑related financial risks. Firms will need to assess material nature exposures, update their sustainability reporting taxonomy, and potentially revise internal risk‑management and stakeholder‑engagement processes. For bulk‑product clients—especially those in energy, agriculture, and natural‑resource sectors—this represents a substantive shift in reporting obligations, affecting data collection, audit scopes, and contingent liabilities. Clients should begin early data inventory and internal process reviews and monitor the forthcoming ISSB draft for compliance guidance and the potential alignment with local jurisdictions’ emerging nature‑capital regulations.