The International Sustainability Standards Board (ISSB) will fold Taskforce on Nature-related Financial Disclosures’ (TNFD) framework into new ISSB standards on nature-related risks and opportunities. TNFD also said it will complete the technical work it currently has in progress by the third quarter of 2026 and pause the commencement of any further technical guidance work.
The two organizations had announced in April they would seek to merge their efforts toward a global standard.
The ISSB was created in 2021 by the International Financial Reporting Standards (IFRS) Board, which sets standards used globally for financial reporting that improves communication between companies and investors. ISSB’s mandate was to set standards to establish a high-quality, comprehensive global baseline of sustainability disclosures focused on the needs of investors and the financial markets.
The TNFD was launched the same year but focused more on evaluating nature risks and opportunities on an ecosystems basis. Its LEAP approach includes Locating a company’s interface with nature; Evaluating its dependencies and impacts on nature;
Assessing its nature-related risks and opportunities; and Preparing to respond to nature-related risks and opportunities and to report on material nature-related issues.
So a fishing company wouldn’t just look at things like fuel emissions and whether they are fishing within the legal catch limit, but how their operations impact the ecosystem in terms of biodiversity, disrupting the food chain, damaging habitat and other activities that could result in future shortages and economic loss.
According to the TNFD, the ISSB signaled it would introduce new or modified disclosure requirements to meet common investor information needs following the findings of its biodiversity, ecosystems and ecosystem services (BEES) research considering nature-related risks and opportunities. So ISSB will undertake standard-setting to introduce incremental disclosure requirements on nature-related risks and opportunities not already reflected in its requirements.
The ISSB said it would draw on the TNFD framework and its non-siloed approach to nature, covering all aspects of nature rather than sub-topics as well as its recommendations, metrics and guidance–including LEAP–as appropriate.
The ISSB aims to have an Exposure Draft of incremental disclosure requirements ready by the Convention on Biological Diversity COP17 in October 2026. The organization said it is incorporating other guidance and exploring options for its new standard that include possibly adding amendments or potentially wholesale change. This work will be subject to public consultation in accordance with the IFRS Foundations due process.
The TNFD will continue to build market awareness and capabilities on nature-related issues globally, through capacity-building materials. Subject to the outcome of the ISSB’s standard-setting process on nature-related issues, likely in 2027, the TNFD would then conclude its technical work program.
“The ISSB recognises that there is a clear investor need for information about nature-related risks and opportunities,” said ISSB Chair, Emmanuel Faber. “Drawing on the TNFD framework enables us to meet this need efficiently, reducing fragmentation and building on leading practice. I encourage market participants to continue using the TNFD framework. This will help them prepare disclosures in accordance with IFRS S1 and prepare for meeting future incremental ISSB disclosure requirements.”
TNFD announced at COP 30 in Brazil that voluntary market adoption of the TNFD recommendations now stands at 733 organizations, over $9 trillion in market capitalization among listed companies and over $22 trillion in assets under management (AUM).
“This week’s announcement by the ISSB is an important step towards nature being considered and embedded in an integrated way into the global foundations of corporate reporting,” said David Craig, Co-Chair TNFD. “It will help shift the mindset across business about nature as a source of risk, resilience and value, and help inform better strategy, risk management and capital allocation decision making across economies. That is important for the resilience of the planet and the resilience of businesses and capital portfolios everywhere.”
