ISSB Brings Nature Into IFRS Reporting

Nature-related disclosure is moving closer to the core ISSB reporting process. The ISSB’s proposed route links TNFD material with the existing IFRS sustainability disclosure framework.

The International Sustainability Standards Board (ISSB) has agreed to propose nature-related disclosure requirements through an IFRS Practice Statement. The proposal would sit alongside IFRS S1 and IFRS S2, helping companies report material nature-related risks and opportunities already captured by IFRS S1.

In practical terms, the ISSB will use TNFD content to shape nature-related disclosure within its global baseline.

Practice Statement and IFRS S1

The decision was taken during the ISSB’s April board meeting in Beijing, with the IFRS Foundation news item dated 22 April 2026. The proposed IFRS Practice Statement would complement IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures, without changing those Standards.

The binding reporting requirement remains in IFRS S1. ISSB Chair Emmanuel Faber said material nature-related disclosures are not optional where IFRS S1 requires them. The Practice Statement would explain how to make those disclosures and, when applied, would have the full effect of an ISSB Standard.

The ISSB says this approach should minimise disruption for companies and jurisdictions already implementing or adopting ISSB Standards. The proposal remains subject to consultation, with an exposure draft planned for public comment in October 2026.

TNFD Input

The ISSB will draw on the Taskforce on Nature-related Financial Disclosures (TNFD) framework. TNFD said in November 2025 that it would complete current technical work by the third quarter of 2026 and pause further technical guidance work.

The ISSB expects to use TNFD’s non-siloed approach to nature, covering all aspects of nature rather than sub-topics. It will draw on TNFD recommendations, metrics and guidance, including the Locate, Evaluate, Assess, Prepare (LEAP) approach as appropriate.

What Preparers Can Do Now

The next milestone is the October 2026 exposure draft. It should show the proposed content, the intended role of the IFRS Practice Statement and the extent of reliance on TNFD recommendations, metrics, guidance and LEAP.

Until then, teams can review whether existing TNFD analysis, where it exists, supports IFRS S1 materiality judgements for nature-related risks and opportunities. The immediate question is whether those issues could reasonably be expected to affect a company’s prospects.

IFRS S1 already captures material nature-related risks and opportunities; what remains open is how the proposed Practice Statement will tell companies to report them.