The International Sustainability Standards Board (ISSB) has proposed allowing companies to use disclosure metrics developed by the Taskforce on Nature-related Financial Disclosures (TNFD) to help meet nature-related disclosure requirements. The proposal forms part of the ISSB’s upcoming IFRS Practice Statement on nature-related disclosures, with an Exposure Draft expected to be published for public consultation in October 2026.
Key Highlights
At its June 2026 meeting, the ISSB agreed to propose that companies may use TNFD disclosure metrics when preparing nature-related disclosures, provided the metrics support the objective of IFRS S1 and do not conflict with ISSB Standards or the proposed IFRS Practice Statement.
Rather than developing a mandatory standalone nature-related disclosure standard, the ISSB has chosen to develop a non-mandatory IFRS Practice Statement. The Board stated that this approach is intended to minimise disruption for companies currently implementing IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures, while providing additional guidance on reporting nature-related risks and opportunities.
Although an IFRS Practice Statement is non-mandatory by design, jurisdictions may choose to require its application within their own regulatory frameworks. The proposed Practice Statement will also be subject to the IFRS Foundation’s full due process, including public consultation.
The ISSB also confirmed that it will draw on the TNFD framework in developing the proposed Practice Statement. Companies wishing to claim compliance with the Practice Statement will need to apply it together with IFRS S1 and IFRS S2 in full, ensuring that nature-related disclosures remain consistent with the ISSB’s global baseline for sustainability reporting.
Why This Matters
The proposal represents another step toward greater interoperability between global sustainability reporting frameworks. By allowing companies to use established TNFD metrics within the proposed Practice Statement, the ISSB aims to reduce reporting fragmentation while helping organizations provide more consistent and decision-useful information on nature-related risks and opportunities.
How EcoActive Helps
With nature-related disclosure requirements taking shape, EcoActive gives organizations an AI-powered foundation for sustainability and financial disclosure management that’s built to keep pace with what’s coming next.
Stay Ahead of Shifting Disclosure Requirements
As IFRS Sustainability Disclosure Standards, TNFD recommendations, and other frameworks continue to develop, EcoActive helps teams incorporate new requirements without having to rebuild existing reporting processes from scratch.
Bring Nature and Sustainability Data Together
Data, metrics, narratives, evidence, and supporting documentation live in one governed environment, so reporting teams can work from a consistent, unified source of truth rather than piecing information together across systems.
Keep Reporting Workflows Moving
Configurable workflows handle data collection, task assignments, reviews, approvals, and evidence tracking, cutting down on manual effort while keeping the reporting process consistent and transparent.
Build in Governance and Audit Readiness
Full audit trails, version history, and reporting transparency are maintained throughout the disclosure lifecycle, so teams can demonstrate compliance and support assurance activities without scrambling at year-end.
Produce Disclosures Teams Can Stand Behind
Built-in validations help produce consistent, high-quality sustainability disclosures, giving reporting teams confidence as IFRS and nature-related expectations continue to evolve, while reducing errors and late-stage rework.
As sustainability reporting continues to expand beyond climate, organizations need a reporting platform that can adapt to evolving frameworks such as IFRS Sustainability Disclosure Standards and TNFD recommendations. EcoActive helps you streamline compliance, strengthen governance, and deliver transparent, regulator-ready disclosures with confidence.
Request a demo to see how EcoActive can support your sustainability reporting journey.
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