Nature-related Disclosures Draft
The International Sustainability Standards Board (ISSB) releases a draft for nature-related disclosures, aiming to establish disclosure requirements for nature-related risks and opportunities.
ISSB believes that the attention of financial report users to nature-related information continues to grow. ISSB launched a biodiversity and ecosystem services research project in 2024 and began developing separate nature disclosure requirements in December 2025.
Related Post: TNFD Updates Recommendations and LEAP Methodology for the First Time
Background of Nature-related Disclosures
ISSB believes that IFRS S1 already requires companies to disclose sustainability related risk and opportunity information, including nature-related information, that can be reasonably expected to affect their prospects. Nature-related disclosures refer to the recommendations released by TNFD and provide a framework for companies to voluntarily apply nature-related information disclosures without affecting the application of IFRS S1 and IFRS S2.
ISSB uses the term “environmental resources” in its nature-related disclosures, rather than the environmental assets used by TNFD. ISSB believes that environmental assets refer to assets in the natural environment that have a beneficial effect on businesses, and the use of environmental resources can reflect nature-related risks. ISSB also divides nature-related risks into nature-related physical risks and nature-related transition risks, but companies may not distinguish between these two types of risks in their disclosures.
Introduction to Nature-related Disclosures
Nature-related disclosures are consistent with IFRS S1 and IFRS S2, and the following disclosure requirements are proposed in several areas including governance, strategy, risk management, and metrics and targets:
- Governance: The goal of governance disclosure is to enable financial report users to understand the governance processes, controls, and procedures that companies use to monitor and manage nature-related risks and opportunities. Enterprises need to disclose the governing bodies and management responsible for regulating nature and consider the location of risks and opportunities related to nature, as well as the relationship between the enterprise and natural stakeholders.
- Strategy: The goal of strategic disclosure is to enable financial report users to understand how companies manage nature-related risks and opportunities. Companies need to explain natural location considerations, identify the populations covered by these locations, and explain the relationship between natural risks and climate risks. Enterprises also need to disclose how to develop natural transition plans.
- Risk Management: The goal of risk management disclosure is to enable financial report users to understand the process of identifying, assessing, ranking, and monitoring nature-related risks and opportunities for the enterprise, as well as how natural risks are incorporated into overall risk management. Enterprises also need to use natural scenario analysis to provide information for natural risk assessment.
- Metrics and Targets: The goal of disclosing indicators and objectives is to enable financial report users to understand the performance of the enterprise in natural risks and opportunities. Enterprises need to disclose the amount and percentage of assets or business activities that are susceptible to natural risks and consistent with natural opportunities and consider presenting this indicator from the perspective of asset categories and regions. Enterprises can also refer to the Global Biodiversity Framework to disclose progress on their targets.
ISSB plans to solicit opinions from stakeholders such as global businesses, investors, and regulatory agencies, and continue to improve nature-related disclosures based on these opinions from February 2027 onwards.
Reference:
Exposure Draft and Comment Letters: Nature-related Disclosures
