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The International Sustainability Standards Board (ISSB) decided to move the Nature-related Disclosures project from research to standard-setting in its work plan. The standard-setting phase of the project will involve developing disclosure requirements to respond to the needs of investors for information on nature-related risks and opportunities. These requirements will supplement the requirements in IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures, to be applied to nature-related risks and opportunities.

ISSB Update May 2026

The ISSB met on 13 May 2026 to discuss:

  • information about the use of nature-related scenario analysis; and
  • identification of nature-related risks and opportunities.

Information about the use of nature-related scenario analysis (Agenda Papers 3A–3B)

The ISSB discussed information about the use of nature-related scenario analysis and related requirements and guidance that would be specific to nature-related risks and opportunities and incremental relative to the general requirements and guidance in IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information.

The ISSB tentatively decided not to provide incremental requirements or guidance on disclosing information about the use of scenario analysis to inform an entity’s identification of nature-related risks.

All 12 ISSB members agreed with this decision.

The ISSB tentatively decided to provide an incremental requirement for an entity to disclose information about whether and how the entity uses scenario analysis to inform its identification of nature-related opportunities.

Ten of 12 ISSB members agreed with this decision.

The ISSB tentatively decided to provide an incremental requirement for an entity to disclose information about whether and how the entity uses scenario analysis to inform its assessment of the nature, likelihood and magnitude of the effects of nature-related risks, including information about:

  1. the inputs the entity used;
  2. the key assumptions the entity made in the analysis; and
  3. the part of the entity to which the scenario analysis applies (for example, whether the analysis applies to the entity in its entirety or only a part of the entity, such as a specific business unit or specific region).

Nine of 12 ISSB members agreed with this decision.

The ISSB tentatively decided:

  1. to require an entity to use nature-related scenario analysis to provide information about the entity’s resilience to nature-related risks proposing requirements consistent with those in IFRS S2 Climate-related Disclosures on resilience assessment using climate-related scenario analysis, including the proportionality mechanisms set out in IFRS S2; and
  2. to emphasise that the assessment in the context of nature-related changes, developments and uncertainties would be more location- and asset-specific than the assessment described in IFRS S2 due to the characteristics of nature-related risks and opportunities.

Seven of 12 ISSB members agreed with this decision.

Identification of nature-related risks and opportunities (Agenda Paper 3C)

The ISSB tentatively decided to note in the proposed IFRS Practice Statement that the Taskforce on Nature-related Financial Disclosures (TNFD) Guidance on identification and assessment of nature-related issues: The LEAP approach might be relevant in providing nature-related disclosures in accordance with the objective of IFRS S1. The Practice Statement would note that:

  1. when an entity identifies nature-related risks and opportunities in accordance with the objective of IFRS S1, the LEAP approach might be relevant to support the entity in:
    1. locating where, within the entity’s business model and throughout its value chain, interfaces with nature occur, and understanding the characteristics of nature in those locations;
    2. evaluating the related dependencies and impacts; and
    3. assessing the associated nature-related risks and opportunities; and
  2. if an entity chooses to use the LEAP approach to identify nature-related risks and opportunities, it would do so to assist in meeting the objective of IFRS S1.

The ISSB stated that the Practice Statement would specify the applicable version of the TNFD LEAP approach, and that noting the relevance of the LEAP approach:

  1. is intended to highlight a process that could support application of the Practice Statement; and
  2. is not intended to require a particular process or approach, nor to require the application of the LEAP approach to assert compliance with the Practice Statement or IFRS Sustainability Disclosure Standards.

Eleven of 12 ISSB members agreed with this decision.

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