Along with other concerned nature leaders, Anita de Horde, Executive Director of Finance for Biodiversity (FfB) Foundation, has signed an open letter responding to the recent ISSB staff recommendation to limit standard-setting for nature to a non-mandatory ‘practice statement’.
The letter warns that such an approach would fall short of current needs and risks overlooking the latest science, private sector momentum and global policy commitments by choosing not to adopt a disclosure standard on nature.
It underscores that climate-related financial risks cannot be fully addressed without integrating nature into disclosures and decision-making, an area not yet covered by existing ISSB standards.
The signatories of the letter call on ISSB to agree to develop a nature-related disclosure standard to support and enable the private sector to assess and address their nature impacts, risks and dependencies, in the interest of business resilience and societal health.
A dedicated S3 nature standard would provide a global baseline, offering a building block for the implementation of Target 15 of the Kunming-Montreal Global Biodiversity Framework, which 196 governments have committed to, and which calls on government to introduce mandatory requirements for reporting on risks, dependencies and impacts on biodiversity.
The ISSB Board will decide on the direction of its nature-related standard-setting at its meeting on Wednesday 22 April.
Jan Erik Saugestad, CEO Storebrand Asset Management, member of FfB Foundation:
“At Storebrand AM, we find the ISSB staff recommendation to forgo a standalone nature standard deeply concerning. Nature and biodiversity loss represent systemic financial risks that cannot be managed through non-mandatory ‘practice statements’ alone. Investors require a clear, global baseline of mandatory disclosures to move beyond fragmented data and ensure nature is integrated into core financial decision-making. We urge the Board to maintain its commitment to a robust nature standard that captures both the dependencies and impacts of companies, providing the transparency needed to protect long-term asset returns.
Sonya Likhtman, Stewardship Director, Federated Hermes Limited and co-chair of the FfB Public Policy Advocacy working group:
Economic and scientific research consistently shows the financial materiality of nature across sectors, geographies and scales. Investors require clear and coherent information from companies about their nature-related impacts, dependencies, risks and opportunities to support effective risk management and decision-making. Furthermore, addressing climate change without considering nature-related issues such as water, land use and pollution would provide an incomplete picture for investors. We therefore see significant value in the ISSB continuing to explore the development of a nature standard, responding to the widespread demand from the private sector and other stakeholders.
Signatories include:
Marco Lambertini, Executive Chair, Nature Positive Initiative Secretariat; Anita de Horde, Executive Director of Finance for Biodiversity (FfB) Foundation; Dorothy Maseke, Head of Secretariat, African Natural Capital Alliance; Julie McCarthy, CEO, Nature Finance; Dame E.J. Milner-Gulland, Tasso Leventis Professor of Biodiversity, University of Oxford; Jennifer Morris, CEO, The Nature Conservancy; Carlos A. Nobre, Co-Chair, Science Panel for the Amazon; Brian O’Donnell, Director, Campaign for Nature; Paul Polman, business leader, philanthropist, investor; Johan Rockström, Director, Potsdam Institute for Climate Impact Research; Sebastian Schienle, Co-Director, Global Commons Alliance Secretariat; Kirsten Schuijt, Director General, WWF International; Pavan Sukhdev, Founder and CEO, GIST Impact; Ilona Szabó de Carvalho, Director, Igarapé Institute; Sebastian Troëng, CEO, Conservation International; Eva Zabey, CEO, Business for Nature; Martin Harper, CEO, BirdLife International.