The IFRS Foundation and the Taskforce on Nature-related Financial Disclosures (TNFD) have committed to build upon the TNFD recommendations in the ongoing work of the International Sustainability Standards Board (ISSB), to enable nature-related financial disclosures for use by capital markets.
The ISSB has been a TNFD Knowledge Partner since its inception in 2021, and its SASB sector classification, legacy CDSB biodiversity guidance and IFRS S1 informed the TNFD recommendations published in September 2023.
More recently, the TNFD has been supporting the ISSB’s Biodiversity, Ecosystems and Ecosystem Services (BEES) research project, which commenced in 2024 and, in February 2025, presented to ISSB members an overview of its work to date to enable further collaboration to be built on a foundation of common understanding.
The Memorandum of Understanding signed earlier this week in Frankfurt is expected to deepen the collaboration between the two organisations as the ISSB considers the TNFD recommendations in its research into the needs of global capital markets for information about nature-related risks and opportunities.
Sue Lloyd, ISSB vice-chair, said: “Our collaboration with the TNFD is a clear signal to the market that we are committed to reducing fragmentation in sustainability disclosure while meeting the need for relevant and high-quality information for capital markets. Strengthening the global baseline of sustainability disclosures with nature-related disclosures to meet investors’ information needs, including enhancing the industry-based SASB Standards, is a core focus of our work plan, and this ongoing collaboration and sharing of research and expertise will propel our work forward more effectively. I am grateful to the TNFD for their partnership.”
David Craig, co-chair of the TNFD, added: “Like the TCFD before us, the TNFD was initiated ahead of specific reporting standards to develop market-based recommendations for decision-useful and practical corporate reporting practices on nature-related aspects beyond GHG emissions. Having engaged thousands of market participants in the development of our recommendations over the past four years from across 50 jurisdictions and with first-generation TNFD reports now published from among the 500 TNFD Adopters, we welcome this deepened collaboration with the ISSB to inform their evolving sustainability reporting standards.
“One of the objectives of the TNFD is to help achieve Target 15 of the Kunming-Montreal Global Biodiversity Framework and we believe that better disclosures about nature issues, which will result from our collaboration with the ISSB, will support the achievement of that goal.”
