ISSB signs partnership with TNFD
Upcoming international biodiversity reporting standards will build on the taskforce’s 2023 recommendations
The International Sustainability Standards Board (ISSB) has formalised its alliance with the Taskforce on Nature-related Financial Disclosures (TNFD) as it moves to develop biodiversity-related reporting standards.
ISSB’s parent body, the IFRS Foundation, has signed a Memorandum of Understanding with TNFD, which it said signalled its commitment to base the upcoming standards on the latter’s 2023 recommendations.
Last year, the IFRS Foundation announced that it would commence work on biodiversity, having published standards for general sustainability disclosures and climate-specific ones.
Among the bodies that supported the move were the UK’s Financial Conduct Authority, the European Securities and Markers Authority and disclosure platform CDP. In a consultation that closed in 2023, most respondents said ISSB’s standards should be based on TNFD recommendations.
ISSB and TNFD have been working together since 2021, and TNFD is currently contributing to ISSB’s research project on biodiversity, ecosystems and ecosystem services.
The IFRS Foundation was keen to stress in yesterday’s announcement that it will continue to focus on the informational needs of capital markets – in line with its ‘single-materiality’ approach.
TNFD’s recommendations, on the other hand, consider both the impact of nature on business activities, and the impact of business activities on nature.
As part of the new agreement, ISSB and TNFD will share research and expertise to help shape ISSB’s work on nature, and updates to relevant parts of the sectoral standards from its affiliate, SASB.
“In addition to deepening its collaboration with the ISSB, the TNFD is continuing its global market engagement and capacity-building efforts on nature-related issues, including development and pilot testing of additional guidance for preparers and advancing a range of data-related issues to improve market access to high-quality nature-related data,” the statement added.
