The ISSB Board today voted to follow the ISSB staff recommendation to develop a non-mandatory ‘practice statement’ on nature rather than a mandatory standard.
We welcome the ISSB’s proposed direction to integrate nature-related disclosures into its standards and to build on existing frameworks such as TNFD. This is an important signal that nature –related risks and opportunities are becoming part of mainstream financial decision-making.
However, the current approach leaves important questions unanswered. It remains unclear whether this work will evolve into a standalone nature standard or remain embedded within IFRS S1. This lack of clarity risks weakening the signal to markets at a time when financial institutions need a clear and consistent direction of travel.
Anita de Horde, Executive Director of Finance for Biodiversity (FfB) Foundation commented:
“We are disappointed that the ISSB has chosen not to advance a nature standard at this stage. Given the urgency of biodiversity loss and its financial implications, this is a missed opportunity. We encourage continued progress through robust practice guidance as a critical step toward a future global disclosure standard.”
Through our network of financial institutions, FfB Foundation can contribute to the further development, testing and piloting of a future nature-related disclosure standard. We therefore stand ready to engage constructively in shaping a robust and decision-useful global baseline.
Anita de Horde was one of a number of concerned nature leaders to sign an open letter responding to the ISSB staff recommendation to limit standard-setting for nature to a non-mandatory ‘practice statement’ ahead of the ISSB Board meeting today, 22 April.
The letter warned that such an approach would fall short of current needs and risk overlooking the latest science, private sector momentum and global policy commitments by choosing not to adopt a disclosure standard on nature.
The signatories of the letter called 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.