ISSB Vice-Chair Sue Lloyd has shared insights into the ISSB’s nature-related disclosure proposals during her address to the IFRS Foundation Conference in London. The ISSB finalised its decision-making on the content of the proposals last week.
The ISSB is targeting October 2026 for publishing the proposals in an Exposure Draft. The ISSB has been developing the proposed Practice Statement, which is subject to the same due process as a Standard, to support companies provide nature-related disclosures to meet investor information needs building on the requirements in IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information.
Sue shared some of the key decisions the ISSB made to develop its proposals including:
- that the Practice Statement be used together with IFRS S1 and IFRS S2 Climate-related Disclosures;
- that the Practice Statement will be a tool that companies can choose to use when providing nature-related information to investors, although a jurisdiction could decide to require companies to use it; and
- to draw on the TNFD framework to develop the proposals.
Sue explained the rationale for these decisions, including supporting improved nature-related disclosure while avoiding overloading companies and jurisdictions already focused on implementing IFRS S1 and IFRS S2.
The ISSB sees a real opportunity to address fragmentation in the disclosure landscape through the proposed Practice Statement by drawing on the TNFD framework and building on IFRS S1 and IFRS S2.
Proposing a Practice Statement enables us to do this without disrupting implementation and adoption of ISSB Standards around the world. However, by developing these proposals in the form of a Practice Statement, we are leaving the door open for a Standard in the future.
We look forward to hearing your feedback when we consult on these proposals later this year.
Sue concluded by highlighting some of the content included in the proposals.
Followable tags
IFRS Sustainability Standards development
Applying IFRS Sustainability standards
IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information
IFRS S2 Climate-related Disclosures
