ISSB: consultation launched on nature-related disclosure guidance

On 22 October 2026, the ISSB launched a consultation on proposed nature-related disclosure guidance. The guidance would take the form of an IFRS Sustainability Disclosure Practice Statement that sets out incremental disclosure requirements, in addition to those in IFRS S1 and IFRS S2, for nature-related risks and opportunities. The consultation closes on 19 February 2027.

Why the ISSB is acting now

Feedback on the ISSB's 2022 Agenda Consultation showed significant investor interest in improved disclosures about nature-related risks and opportunities. Users were pointing to the absence of a globally recognised framework as a key reason for the low quality, unavailability and incomparability of nature-related information.

In November 2025, the ISSB announced that it was planning to develop nature-related disclosure requirements, building on its existing IFRS standards (see ISSB press release). Our Quick Guide breaks down the key elements of the ISSB standards but, in summary:

• IFRS S1 covers requirements for disclosure of sustainability-related financial information; and

• IFRS S2 covers climate-related disclosures.

Not a new standard

The ISSB agreed in April 2026 that new nature-related disclosure guidance would take the form of an IFRS Practice Statement. It has made clear, however, that the Practice Statement's proposed non-mandatory status does not change the requirement for nature-related reporting. Emmanuel Faber, ISSB Chair, has 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.”

The ISSB’s rationale for choosing non-mandatory guidance is that this will allow it to specify incremental requirements that address investor needs, while minimising disruption to the ongoing global adoption of IFRS S1 and IFRS S2.

Nonetheless, one matter on which the ISSB seeks feedback is whether to finalise the nature-related guidance as a Practice Statement or to issue it in another form. 

Notable areas of coverage 

The Exposure Draft is structured along the familiar four core content areas in IFRS S1: governance, strategy, risk management, and metrics and targets. The ISSB says the proposed Practice Statement is intended to provide clarity on what nature is and why it matters for business, including definitions of terms such as “nature-related physical risks” and “nature-related transition risks”.

Under the proposed guidance, entities would be asked to consider how their dependencies and impacts throughout the value chain, and the resulting nature-related risks and opportunities, vary by location of assets and activities. The Practice Statement would also require entities to consider their interactions with Indigenous Peoples, Local Communities and affected stakeholders in identifying their nature-related risks and opportunities. Entities would also need to consider the link between nature-related and climate-related information.

Two new cross-industry metrics are proposed: where material, entities would disclose (i) the amount and percentage of assets or business activities vulnerable to nature-related risks and (ii) the amount and percentage of assets or business activities aligned with nature-related opportunities. Unlike the approach taken in IFRS S2 and the TNFD core global metrics, the Practice Statement would not require disaggregation of nature-related transition and nature-related physical risks.

Interaction with TNFD recommendations and wider interoperability

The proposed Practice Statement draws directly on the TNFD framework. The ISSB recognises that over 800 firms have already adopted the final recommendations that TNFD published in September 2023 (for more information, see our blog post).

For its part, the TNFD announced in November 2025 that it intended to complete its ongoing technical work by Q3 2026 and then pause any further technical guidance (see TNFD press release). Since then, it has focused on providing continued support to the ISSB.

Where wider interoperability with existing standards is concerned, the ISSB has clarified that under the proposed Practice Statement, entities could still look to the GRI Standards and the ESRS when identifying nature-related information for disclosure, insofar as it is helpful for meeting the requirements of IFRS S1 and provided that it does not cut across the IFRS Sustainability Disclosure Standards.

Feedback 

Feedback is sought on the form of content, decision-usefulness for investors, cost-effectiveness for preparers, interoperability and proportionality. Crucially, from an investor perspective, the ISSB wants to know if this guidance is likely to lead to higher-quality reporting on areas of importance.

Stakeholders can respond to the request for comment on the Exposure Draft by submitting a survey or a comment letter.

Biodiversity conference (COP17)

The consultation launched during the Biodiversity Conference (COP17), which is currently taking place in Yerevan, Armenia. The conference will run from 19 to 30 October 2026. We will cover key takeaways from this conference in a separate blog post.