The IFRS Foundation and the Taskforce on Nature-related Financial Disclosures (TNFD) have committed to build upon the TNFD’s framework in the standards development work of the International Sustainability Standards Board (ISSB). The memorandum of understanding commits both parties to incorporate the TNFD’s disclosure recommendations in the development of the ISSB’s sustainability reporting standards. “Transparency and accountability are a key means of enabling more stable, resilient and efficient capital markets, and this collaboration will advance the ISSB’s ongoing work to reduce the complexity of the sustainability disclosure landscape, while building on established expertise and practice,” said Erkki Liikanen, Chair of the IFRS Foundation Trustees. The agreement builds on the ISSB’s role as a TNFD Knowledge Partner and acknowledges that the IFRS S1 general sustainability disclosure standard informed the TNFD’s finalised recommendations, which were published in September 2023. More recently, the TNFD has been supporting the ISSB’s Biodiversity, Ecosystems and Ecosystem Services (BEES) research project, launched last year. “Nature is essential to our economies and our future,” said Razan Al-Mubarak, TNFD Co-chair, President of the International Union for Conservation of Nature and former COP28 Champion. “Our collaboration with the ISSB is a major step toward making nature visible in businesses reporting and how capital is allocated. Climate-related standards have already moved markets, and we are pleased to continue to support ISSB efforts that bring the rest of nature into global reporting practice.”
