The ISSB Signals the Potential Future for Nature Related Disclosures
The ISSB Signals the Potential Future for Nature Related Disclosures
Original article published by BDO Australia
Author: Aletta Boshoff, National Sustainability Leader, BDO Australia
The International Sustainability Standards Board (ISSB) has agreed to provide guidance for nature related disclosures through an IFRS Practice Statement.
The Practice Statement will provide practical guidance to support organisations when applying IFRS® Sustainability Disclosure Standards. For Australian and other organisations preparing for mandatory climate related reporting, it will provide early direction on how nature‑related risks may be considered alongside climate disclosures.
Importantly, this Practice Statement would complement IFRS S1 General Requirements for Disclosure of Sustainability related Financial Information and IFRS S2 Climate related Disclosures, without introducing new disclosure obligations. Instead, it is intended to support how companies identify, assess and disclose nature related risks and opportunities when applying IFRS S1, rather than changing what is required.
As ISSB Chair, Emmanuel Faber emphasised, “Providing material nature related information is not optional, IFRS S1 already requires that.” The role of the Practice Statement is to support companies in meeting that requirement in a consistent and practical way.
The proposed guidance will draw heavily on the Taskforce on Nature-related Financial Disclosures (TNFD) framework, reflecting the increasing investor focus on how nature related risks and exposures translate into financial impacts. For organisations already using, or considering alignment with the TNFD framework, this should help create a more consistent transition as nature related considerations become part of mainstream sustainability reporting.
This consultation phase will be important for organisations across different geographies and industries, particularly those with significant nature related risks, location specific impacts or reliance on complex supply chains.
Australian and other organisations should now:
More detailed information on the ISSB’s decision and next steps is available on the IFRS Foundation web site.
Author: Aletta Boshoff, National Sustainability Leader, BDO Australia
The International Sustainability Standards Board (ISSB) has agreed to provide guidance for nature related disclosures through an IFRS Practice Statement.
The Practice Statement will provide practical guidance to support organisations when applying IFRS® Sustainability Disclosure Standards. For Australian and other organisations preparing for mandatory climate related reporting, it will provide early direction on how nature‑related risks may be considered alongside climate disclosures.
Importantly, this Practice Statement would complement IFRS S1 General Requirements for Disclosure of Sustainability related Financial Information and IFRS S2 Climate related Disclosures, without introducing new disclosure obligations. Instead, it is intended to support how companies identify, assess and disclose nature related risks and opportunities when applying IFRS S1, rather than changing what is required.
Why a practice statement?
The ISSB has indicated that issuing a Practice Statement reflects the current stage of implementation of IFRS S1 and IFRS S2. By providing guidance that complements the existing Standards, the ISSB aims to support more consistent and useful disclosures while giving organisations time to build capability. This is particularly relevant in Australia, where organisations are focused on implementing mandatory climate related reporting and are currently working to strengthen governance, systems and internal processes.As ISSB Chair, Emmanuel Faber emphasised, “Providing material nature related information is not optional, IFRS S1 already requires that.” The role of the Practice Statement is to support companies in meeting that requirement in a consistent and practical way.
The proposed guidance will draw heavily on the Taskforce on Nature-related Financial Disclosures (TNFD) framework, reflecting the increasing investor focus on how nature related risks and exposures translate into financial impacts. For organisations already using, or considering alignment with the TNFD framework, this should help create a more consistent transition as nature related considerations become part of mainstream sustainability reporting.
What will happen next ?
The ISSB expects to publish an Exposure Draft for public consultation in October 2026. Stakeholders will be invited to comment on both the proposed disclosure content and whether an IFRS Practice Statement is the appropriate approach for nature related disclosures.This consultation phase will be important for organisations across different geographies and industries, particularly those with significant nature related risks, location specific impacts or reliance on complex supply chains.
What this means for Australian and other Organisations
While the ISSB is not introducing new nature specific disclosure requirements at this stage, Australian organisations should not treat this as a reason to defer consideration of nature related risks and opportunities. For many organisations, factors such as biodiversity, water availability, land use and supply chain exposure may already be financially material under existing sustainability reporting requirements.Australian and other organisations should now:
- Consider whether nature related risks and opportunities are captured in their existing materiality assessments
- Assess how current risk, data and governance processes would support broader sustainability disclosures beyond climate
- Monitor the ISSB’s Exposure Draft and contribute during the consultation process.
More detailed information on the ISSB’s decision and next steps is available on the IFRS Foundation web site.