The International Sustainability Standards Board (ISSB) is launching a standard-setting process to introduce nature-related disclosure requirements, building on the Taskforce on Nature‑related Financial Disclosures (TNFD) framework.
The TNFD reports 733 organisations, USD 22 trillion in assets under management and over USD 9 trillion in market-capitalisation companies are aligned to its voluntary recommendations.
ISSB expects to publish an Exposure Draft of incremental nature-related disclosures by CBD COP17 in October 2026, signalling growing regulatory convergence on biodiversity-linked financial reporting.
Nature makes its way into the global baseline
In London this week the ISSB confirmed it will draw on the TNFD framework to develop new or amended disclosure standards covering nature-related risks and opportunities. TNFD for its part announced it will complete its current technical work by the third quarter of 2026 and pause further guidance development, thereby clearing space for the ISSB to establish a global baseline for nature disclosures.
The decision marks a shift: instead of a proliferation of competing guidance, investors and companies will see a unified pathway through the ISSB’s standards. ISSB chair Emmanuel Faber emphasised that investor demand for nature-related information is clear and said the ISSB will act efficiently by building on existing best practice from the TNFD. The TNFD framework’s LEAP (Locate, Evaluate, Assess, Prepare) approach will be part of the groundwork.
Governance and market structure implications
By moving nature-related disclosures into the scope of its standards-setting work, the ISSB signals that biodiversity, ecosystems and ecosystem services (BEES) are now firmly part of mainstream corporate reporting. The governance dimension here is critical: numerous jurisdictions that already reference ISSB standards may see mandatory nature disclosures follow.
For corporates and investors this means nature is no longer peripheral. Strategy, risk management, capital-allocation decisions must account for nature-related dependencies, impacts and transitions in the same way they do for climate. The ISSB’s intention to align and consult within the formal IFRS Foundation due-process ensures the standard-setting work will meet recognised governance rigour.
Financing flows and investor behavior
The TNFD figures reveal scale: more than 730 organisations have aligned with its guidance, covering more than USD 22 trillion AUM and over USD 9 trillion in listed-company market value. That suggests investor appetite for nature-related disclosure is already substantial, and the transition to an ISSB-based standard will likely accelerate capital flows into nature-sensitive investment strategies and open up nature-related risk pricing.
For asset owners and managers the practical takeaway is that voluntary alignment via TNFD is no longer sufficient as a long-term strategy. With the ISSB setting the bar for incremental disclosures, early movers who integrate nature-risks now may gain a competitive edge in sourcing capital and avoiding stranded-asset or liability risks. At the same time, companies should anticipate future cost of capital implications if they lack credible nature-governance and disclosure practices.
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Implementation and roadmap
The ISSB will decide in the coming months whether its nature-related work proceeds via?
application guidance or amendments to its existing IFRS S1 and IFRS S2 standards;
industry-based or sector-specific guidance;
or a wholly new standard focused on nature.
A public consultation process is slated, and the ISSB aims to submit an Exposure Draft in time for the CBD’s COP17 in October 2026. After finalising the standard the board will develop educational and implementation-materials to ensure applicability across diverse jurisdictions and sectors.
Companies referencing TNFD recommendations in the meantime are advised to continue alignment, as the ISSB has indicated it will draw on TNFD metrics and guidance. That continuity may reduce fragmentation of nature-related disclosures across frameworks.
What C-Suite and investors should focus on now
Chief executives and boards must treat nature as an enterprise-risk topic: mapping dependencies, exposures, and transition pathways across supply-chains and habitats. Finance teams and sustainability leads should assess whether current nature disclosures are robust, forward-looking and aligned with investor expectations.
Investors should revisit portfolio exposures to nature-linked risk, adjust scenario-analysis processes to include BEES stress testing, and review portfolio-company disclosures ahead of the new ISSB timeline. Those with early-stage nature-strategy in place may benefit from stronger engagement footing and improved deal access.
Global significance and regional playbook
As jurisdictions around the world increasingly adopt or reference ISSB standards — already about 40 jurisdictions worldwide — the move to incorporate nature-related disclosures raises the likelihood of harmonized regulatory expectations. This offers multinational companies a clearer collective roadmap. Regionally, markets in Africa, Latin America and APAC will likely need to scale local implementation capability and data-infrastructure to respond effectively.
In an era where loss of biodiversity and ecosystem degradation pose systemic threats to economies and capital markets, the integration of nature into the global disclosure baseline marks a step in closing the information gap. The journey ahead will test companies and investors alike — but for those ready, the pathway is becoming clearer.
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