The IFRS Foundation and the Taskforce on Nature-related Financial Disclosures (TNFD) have signed a Memorandum of Understanding (MoU) to enable nature-related financial disclosures for use by capital markets.
The MoU between ISSB and TNFD aims to enhance ISSB’s BEES initiative and SASB standards by sharing research, knowledge, and technical expertise. Both organizations want to explore collaborative market engagement and capacity-building initiatives with other key partner organizations.
The ISSB aims to provide investors with information on how sustainability-related risks and opportunities impact companies’ prospects, focusing on primary users as defined in ISSB Standards.
The MOU aims to enhance collaboration between ISSB and TNFD, as the latter uses TNFD recommendations in its research on global capital market needs for nature-related risks and opportunities.
The International Sustainability Standards Board (ISSB) will consider the relevance of the TNFD recommendations in meeting the needs of global capital markets.
The ISSB, a TNFD Knowledge Partner since late 2021, contributed to the TNFD recommendations published in September 2023, using its SASB sector classification, legacy CDSB biodiversity guidance, and IFRS S1.
It has been supporting the ISSB’s BEES research project since 2024, presenting an overview to ISSB members in February 2025 for further collaboration.
Erkki Liikanen, Chair of the IFRS Foundation Trustees, said, “… 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.”
Sue Lloyd, Vice-Chair, ISSB, said, “… Strengthening the global baseline of sustainability disclosures with nature-related disclosures to meet investors’ information needs, including enhancing the industry-based SASB Standards, is a core focus of our work plan, and this ongoing collaboration and sharing of research and expertise will propel our work forward more effectively. I am grateful to the TNFD for their partnership.”
David Craig, co-chair of the TNFD, said, “Like the TCFD before us, the TNFD was initiated ahead of specific reporting standards to develop market-based recommendations for decision-useful and practical corporate reporting practices on nature-related aspects beyond GHG emissions.”
Razan Al-Mubarak, co-chair of the TNFD and president of the IUCN and former champion of COP28, said, “Nature is essential to our economies and our future. 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. Stronger standards mean stronger businesses—and a healthier, more resilient planet for all of us.”
The ISSB’s research on nature-related disclosures and subsequent standard setting will be subject to the IFRS Foundation’s due process, including public consultation on any resulting proposals.
