Highlights
Companies stand to benefit from new guidance on reporting nature-related risks and opportunities through the International Sustainability Standards Board (ISSB) Nature-related Disclosures project (formerly known as Biodiversity, Ecosystems and Ecosystem Services – BEES).
The ISSB is developing proposals to supplement IFRS® Sustainability Disclosure Standards and related SASB industry guidance1 with new nature-specific requirements and guidance that build on the Taskforce on Nature-related Financial Disclosures (TNFD) framework.
In February 2026, the ISSB confirmed that the proposals will focus on ‘nature-related risks and opportunities’ – a broad scope that mirrors the language in IFRS S2 Climate-related Disclosures. It will also develop guidance to support companies to connect nature- and climate-related information.
What's the issue?
The ISSB is developing proposals for new reporting requirements and guidance to help companies apply IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 more effectively to a broad spectrum of nature-related topics. These could include land use, pollution, resource extraction, water and biodiversity. It plans to publish an exposure draft in October 2026.
By taking a holistic approach to a broad range of nature-related risks and opportunities, IFRS Sustainability Disclosure Standards would differ from European Sustainability Reporting Standards (ESRS), which set separate standards for individual topics.
It is not yet known what form the new disclosure requirements would take. They could be introduced as application guidance to IFRS S1, as a new standard or through another mechanism.
The diagram below shows the focus areas the ISSB has identified for potential new nature-related requirements and/or guidance, and how they are expected to align with the core content areas of IFRS Sustainability Disclosure Standards. The ISSB will introduce new requirements selectively across these focus areas to address the needs it identifies as the project progresses.
What’s the impact?
Companies already need to report material nature-related information after their first year of reporting under IFRS S12. However, the ISSB’s new proposals aim to provide comprehensive support for them to do so effectively.
The ISSB has agreed to build on the work of the TNFD, which is established as a popular framework for nature-related reporting3, and to align with ESRS and GRI.
The proposals will take time to develop and once finalised, will need to be endorsed locally to become effective.
What are the latest developments?
The ISSB is holding regular decision sessions on the Nature-related Disclosures project in the first half of 2026. Below are the latest developments.
Project scope and defined terms
The proposals will focus on nature-related risks and opportunities. As a result, the project is now called Nature-related Disclosures rather than BEES. The scope of nature-related risks and opportunities will be defined in a similar way to climate-related risks and opportunities under IFRS S2, while also drawing on the TNFD framework. This means that nature-related disclosures will be embedded within the same architecture as climate reporting.
Other important terms such as ecosystem services and environmental assets, used under TNFD to explain the benefits and resources nature provides, will also be defined. These terms are considered essential to clarify the scope of nature-related disclosures: defining them will enhance companies’ understanding of the reporting requirements.
Companies will also receive guidance on key concepts and terms such as nature, dependencies on nature and impacts on nature.
Climate-nature nexus disclosures
The ISSB has identified a clear investor need for information on the connections between climate- and nature-related risks and opportunities. In response, companies can expect targeted guidance – rather than a new set of standalone disclosure requirements – 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 the characteristics of a company’s individual risks and on its overall risk profile – e.g. by changing the magnitude or likelihood of a risk, or creating cascading and compounding risks;
- trade-offs between actions that address climate- and nature-related risks and opportunities; and
- synergies from addressing climate- and nature-related risks and opportunities together.
An exposure draft is expected in October 2026, to be followed by a period of public consultation and revision.
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 framework materials can help you to report, given that the ISSB is building its requirements and guidance on TNFD.
1 The SASB Standards are governed by the ISSB following the SASB merger with the International Integrated Reporting Council (IIRC) into the Value Reporting Foundation (VRF) and subsequent consolidation into the IFRS Foundation in 2022.
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.
3 Over 730 organisations had adopted the TNFD framework by November 2025. TNFD will pause further development of its technical guidance and expects to conclude its activities in 2027, creating a natural transition point for its thinking to be embedded into the ISSB’s work.
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