IFRS, TNFD Formalize Partnership on Nature-Related Disclosures

The International Sustainability Standards Board (ISSB) and the Taskforce on Nature-related Financial Disclosures (TNFD) have formalized their collaboration through a Memorandum of Understanding to enhance nature-related financial disclosures for capital markets. This partnership will build upon the TNFD's recommendations, which aim to make nature-related risks and opportunities more visible in business reporting. ISSB vice-chair Sue Lloyd emphasized the commitment to reducing fragmentation in sustainability disclosures, while TNFD co-chair Razan Al-Mubarak highlighted the importance of integrating nature into financial reporting practices. The ISSB's ongoing work will focus on biodiversity, ecosystems, and ecosystem services as part of its broader sustainability disclosure standards development. The collaboration signals a collective effort to provide investors with relevant information regarding sustainability-related risks, ultimately fostering more resilient capital markets. Both organizations aim to support stakeholders in better understanding and managing their impact on nature and biodiversity.