ISSB agrees next steps on nature

Plan for ‘incremental requirements and guidance’ comes as investors publish update on corporate biodiversity engagement

The International Sustainability Standards Board (ISSB) has “tentatively” agreed its next steps on nature.  

The board agreed in November to supplement its existing disclosure standards, which focus on general reporting and climate-specific topics, with standards on nature-related risks and opportunities. 

Last week, it provisionally signed off on the development of “incremental requirements and guidance” for firms.  

“The ISSB tentatively decided to provide incremental requirements and guidance for disclosing information on the effects of nature-related risks and opportunities on an entity’s strategy and decision-making,” it wrote as part of a summary of its latest meeting. 

This will include information about how companies will respond to such risks and opportunities, “regardless of whether these actions form part of a transition plan”. 

The update came just days before shareholder network Spring published its debut report on its engagement with companies on nature issues.  

Spring is convened by the Principles for Responsible Investment and seeks to push portfolio firms to halt biodiversity loss in their businesses by 2030. 

It observed some progress among the 50+ companies on its target list, but it was limited, with most still at the “early stages” of fully embedding nature into their value chains and policy advocacy.  

More firms have made explicit commitments to the Global Biodiversity Framework over the past year, Spring noted, especially in the mining sector. 

“Board oversight scores saw some incremental progress in integrating executive remuneration and board expertise,” the report added. 

“There has been a marked increase in monitoring and assessment, with wider adoption of science-based metrics and tools for evaluating nature-based risks and opportunities across a range of firms.”

More than half the companies assessed now monitor, disclose and mitigate impacts and risks regularly – up from 39% last April – while more than a fifth had set “ambitious time-bound and science-based targets” on eliminating deforestation and biodiversity loss. 

Last week, the Science Based Targets Network opened a consultation on its approach to assessing and prioritising nature-based impacts, as part of the development of standards for target setting.  

The firms targeted by Spring performed less well when it came to lobbying, according to the results. 

“Investors are requesting companies to disclose both direct and indirect lobbying activities and report on advocacy efforts related to key policies, including the EU Deforestation Regulation, the Green Deal and the Amazon Soy Moratorium,” it explained.