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      Highlights

      – What's the latest status?

      – What's the impact?

      – What's next

      – Actions for management

      Companies can expect guidance on reporting nature-related topics under IFRS® Sustainability Disclosure Standards in a future IFRS practice statement. 

      The International Sustainability Standards Board (ISSB) decided in April 2026 that it would provide future voluntary guidance as a practice statement rather than a mandatory disclosure standard. This approach avoids altering IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures while jurisdictions are still in the process of adopting them. 

      The ISSB also decided to provide guidance on location-specific information and engagement with indigenous peoples, local communities and affected stakeholders.

      Barbara Zonneveld
      Barbara Zonneveld

      Sustainability Reporting Director

      KPMG International

      IFRS S1 already requires reporting on all material sustainability-related risks and opportunities, yet the growing investor focus on nature-related topics warrants more targeted guidance. Clearer guidance would help companies prepare consistent nature-specific disclosures that promote high-quality reporting and informed decision-making.

      Barbara Zonneveld

      Sustainability Reporting Director

      What's the latest status?

      In April 2026, the ISSB decided it would issue future nature-related disclosure requirements and guidance as an IFRS practice statement, leaving IFRS S1 and IFRS S2 unchanged. This retains the option to convert the content into a future IFRS sustainability disclosure standard, while giving the ISSB time to consider how its suite of standards fits together.

      Following the latest ISSBTM meeting, companies can also expect guidance on:

      • disclosing their exposure to nature-related risks and opportunities;
      • location-specific reporting; and
      • applying IFRS S1 to risks and opportunities related to engagement with indigenous peoples, local communities and affected stakeholders.

      This was the latest in a series of ISSB meetings to develop proposals for new nature-specific guidance. The proposals will supplement existing IFRS Sustainability Disclosure Standards and SASB Standards, and build on the Taskforce on Nature-related Financial Disclosures (TNFD) recommendations1. 

      The table below summarises decisions to date.

      Focus areas
      Focus areaDecision dateISSB decisions

      Location-specific information

      April 2026
      • The proposals would require companies to disclose the amount and percentage of assets or business activities vulnerable to nature-related risks or aligned with opportunities. This guidance would be subject to relief.
      • Companies would receive guidance on how to consider location when identifying risks, opportunities and material information. This may also be relevant for reporting topics other than nature, such as climate.

      Transition plans

      March 2026
      • Companies would need to report on how they are transitioning their business to manage nature-related risks and opportunities. However, companies would not need to disclose a formal transition plan.

      Metrics

      March 2026
      • The proposals would not introduce cross-industry, nature-related metrics at this point. Instead, the ISSB proposes to update and enhance nature-related requirements in SASB industry-based standards.
      • However, it may add the TNFD as a source of guidance for companies to identify relevant cross-industry metrics.

      Targets and regulatory alignment

      March 2026
      • The proposals would not include requirements for specific nature-related targets. Instead, the ISSB proposes to add guidance and examples to IFRS S1 to explain what nature-related targets might look like.
      • Companies can also expect guidance to disclose whether and how local laws and regulations have informed any such targets.

      Project scope

      February 2026
      • The proposals would focus on nature-related risks and opportunities. As a result, the project was renamed from ‘BEES’ to ‘Nature-related Disclosures’.

      Defined terms

      February 2026
      • The project’s scope would encompass nature-related risks and opportunities, aligning with the scope of IFRS S2 for climate-related risks and opportunities, and would also draw on the TNFD recommendations.  
      • Other important terms such as ecosystem services and environmental assets, used under the TNFD to explain the benefits and resources nature provides, would also be defined. 
      • The ISSB also intends to issue guidance on key concepts and terms such as nature, dependencies on nature and impacts on nature. 

      Climate-nature nexus

      February 2026
      • Companies can expect targeted guidance on how to apply the existing connected information requirements in IFRS S1 and IFRS S2.
      • This proposed guidance would help companies explain the effects of climate-nature connections on a company’s risk profile; trade-offs between actions that address climate- and nature-related risks and opportunities; and synergies from addressing them together. 
      Additional areas of discussion
      Additional areasDecision dateISSB decisions

      Indigenous peoples, local communities and affected stakeholders

      April 2026
      • The proposals would introduce application guidance on risks and opportunities arising from the relationship between nature and indigenous peoples, local communities and affected stakeholders. This guidance would illustrate a key connection between environmental and social topics.

      What’s the impact?

      Although companies already need to report material nature-related information under IFRS S1 (after their first year of reporting2), this project aims to help them do so more effectively. 

      The new guidance would provide more comprehensive support to apply IFRS S1, IFRS S2 and related SASB industry guidance to a broad range of nature-related topics, such as land use, pollution, resource extraction, water and biodiversity. 

      By issuing the materials as an IFRS practice statement, the ISSB aims to provide flexibility for preparers, while also minimising disruption as jurisdictions adopt IFRS S1 and IFRS S2. Jurisdictions could choose to mandate the guidance, which would have a similar effect to introducing a new standard. The forthcoming public consultation will include a request for feedback on whether this approach is the most appropriate format for guidance on nature-related disclosures.

      What’s next

      The proposals will take time to develop and, once finalised, will need to be adopted locally to become mandatory. An exposure draft is expected in October 2026, to be followed by a period of public consultation and revision.

      timeline

      Actions for management

      • Bookmark and revisit this page to stay informed about the project, including the exposure draft expected in October 2026.
      • Understand how your company is exposed to nature-related risks and opportunities. If you are exposed, consider how TNFD recommendation materials can help you to report, given that the ISSB is building its requirements and guidance on them.
      • Companies reporting under ESRS and GRI Standards need to monitor the ISSB proposals closely. Although the ISSB aims to align with these standards, differences may emerge in the final proposals.

      1 The proposals also seek to align with European Sustainability Reporting Standards (ESRS) and the Global Reporting Initiative (GRI) Standards.

      2 The ‘climate-first’ exemption in IFRS S1 allows companies to report only on climate-related risks and opportunities for the first year of reporting.

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