Expanding the Global Baseline: ISSB Advances Nature-related Disclosures
The International Sustainability Standards Board (ISSB) has taken a significant step toward integrating nature-related risks and opportunities into global sustainability reporting, agreeing on a proposed way forward during its April 2026 Board meeting in Beijing. According to the IFRS Foundation, the ISSB will develop requirements for nature-related disclosures through an IFRS Practice Statement, designed to complement existing standards—IFRS S1 (general sustainability disclosures) and IFRS S2 (climate-related disclosures)—without introducing a new standalone standard at this stage.
Building on existing standards
The decision reflects a pragmatic, phased approach to expanding the global sustainability reporting baseline. Rather than introducing additional mandatory requirements while jurisdictions are still adopting IFRS S1 and S2, the ISSB opted to provide practical guidance on how companies can report nature-related issues under existing standards.
Importantly, nature-related disclosures are already embedded in IFRS S1, which requires companies to report all material sustainability-related risks and opportunities, including those related to biodiversity, ecosystems, and natural capital, when they could affect financial performance or long-term prospects. The proposed Practice Statement will therefore serve as a methodological bridge, helping companies translate these requirements into consistent, decision-useful disclosures.
Aligning global frameworks
A key feature of the ISSB’s approach is its alignment with the Taskforce on Nature-related Financial Disclosures (TNFD). The proposed guidance will draw extensively on TNFD’s framework, including its established structure around governance, strategy, risk management, and metrics and targets.
This alignment is intended to reduce fragmentation across reporting frameworks and create a clearer pathway for companies and investors navigating the rapidly evolving sustainability disclosure landscape. By anchoring its work in existing global initiatives, the ISSB is reinforcing its objective of delivering a coherent and interoperable global baseline.
From climate to nature
The move reflects a broader shift in sustainability reporting—from a primary focus on climate toward a more holistic understanding of environmental risks, including biodiversity loss, water stress, and land-use change.
These risks are increasingly recognized as financially material, with implications for business resilience, supply chains, and long-term value creation. The ISSB’s direction of travel confirms that nature-related issues are becoming central to financial decision-making, mirroring the trajectory previously seen with climate disclosures.
What comes next
The ISSB plans to publish an Exposure Draft in October 2026 for public consultation, providing stakeholders the opportunity to shape the future framework for nature-related disclosures. The selected approach—issuing a Practice Statement—also preserves flexibility. While not a standalone standard, it can have equivalent practical effect for entities that apply it, while giving the ISSB space to consider a potential future standard as market practices evolve.
Implications for emerging markets
For emerging markets and policymakers, the ISSB’s decision offers a balanced pathway—advancing the integration of nature into reporting frameworks without overburdening institutions already working to implement climate-related disclosures. This is particularly relevant for countries building sustainability reporting systems across both public and private sectors. As nature-related considerations become more prominent, ensuring alignment between corporate disclosure, public financial management, and national policy frameworks will be critical.
IFC’s Beyond the Balance Sheet program has increasingly engaged with this agenda, supporting jurisdictions in adopting ISSB-aligned standards and strengthening reporting ecosystems. The expansion into nature-related disclosures reinforces the need for integrated approaches that bridge climate, nature, and governance considerations across the economy.
A turning point for sustainability reporting
The ISSB’s decision signals a clear evolution in the global reporting landscape. By advancing guidance on nature-related disclosures, the Board is responding to growing investor demand while maintaining stability in the implementation of existing standards.
As countries and companies move from climate reporting toward broader sustainability disclosure, the integration of nature represents the next frontier in transparency—linking environmental risks more directly to financial performance, capital allocation, and long-term resilience.