ISSB and TNFD Collaborate on Nature-Related Disclosures
The partnership aims to provide investors with relevant and high-quality information, reducing fragmentation in sustainability disclosure and promoting transparency and accountability in capital markets, with the ISSB planning to make decisions on biodiversity and human capital standard setting in the coming months.
The International Sustainability Standards Board (ISSB) and the Taskforce on Nature-related Financial Disclosures (TNFD) have formalized their collaboration to enable nature-related financial disclosures for capital markets, allowing the ISSB to consider TNFD recommendations in its work on sustainability standards.
The agreement between the two organizations aims to deepen their collaboration on biodiversity-related topics, with the ISSB developing standards to provide investors with information on sustainability risks and opportunities. The TNFD, established to support organizations in reporting and acting on nature-related risks, has gained significant traction with over 1,700 members and 520 companies committing to nature-related corporate reporting.
The collaboration will enable the ISSB and TNFD to share research, knowledge, and expertise to inform the ISSB's BEES initiative and industry-focused SASB standards enhancement work. The goal is to strengthen global sustainability disclosures and provide investors with relevant and high-quality information, reducing fragmentation in sustainability disclosure and promoting transparency and accountability in capital markets.
The ISSB plans to make decisions on biodiversity and human capital standard setting within the next few months, and has partnered with the TNFD to advance its biodiversity-related work. The partnership between the ISSB and TNFD is expected to have a significant impact on the development of global sustainability standards, enabling companies to better disclose their nature-related financial risks and opportunities.
The collaboration between the ISSB and TNFD is a significant step forward in promoting transparency and accountability in capital markets, and is expected to have a positive impact on the development of global sustainability standards. As the ISSB and TNFD continue to work together, investors and companies can expect to see improved disclosures on nature-related financial risks and opportunities.