The International Sustainability Standards Board (ISSB) has agreed to propose requirements for nature-related disclosures through an IFRS Practice Statement.
The decision was taken at the ISSB’s board meeting held in Beijing, China.
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The ISSB’s existing requirements already obligate companies to report on all material sustainability-related risks and opportunities, which include nature-related issues that could influence a company’s prospects.
The planned Practice Statement would complement IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures.
Under the proposal, when entities are required to disclose information on nature-related risks and opportunities under IFRS S1, the Practice Statement would set out how such disclosures should be prepared and presented.
The ISSB indicated that using this form of standard-setting is designed to limit disruption for companies and regulators that are currently rolling out or considering adopting its standards.
The move follows the ISSB’s work to clarify what constitutes material information on nature-related risks and opportunities, informed by the Taskforce on Nature-related Financial Disclosures framework.
The ISSB is targeting October 2026 for the publication of an exposure draft, which will be released for public consultation.
Stakeholders will be invited to comment on the proposed nature-related disclosure requirements and on whether an IFRS Practice Statement is an appropriate mechanism for setting guidance in this area.
ISSB chair Emmanuel Faber said: “Providing material nature-related disclosures is not optional; IFRS S1 already requires that. A Practice Statement will guide companies on how to provide such disclosures.”
According to the ISSB, applying the Practice Statement would have the same effect as complying with an ISSB Standard for entities that choose to use it, while also allowing a route to a potential future standard-setting outcome based on that guidance.
