The IFRS Foundation and the Taskforce on Nature-related Financial Disclosures (TNFD) have formalised a strategic collaboration to advance nature-related financial reporting.

The partnership will enable the International Sustainability Standards Board (ISSB) and the TNFD to share technical expertise, research, and market insights. Both organisations will work together to strengthen disclosure standards for biodiversity, ecosystems, and ecosystem services, while supporting industry-specific guidance that helps businesses report nature impacts and dependencies more consistently.

Erkki Liikanen, Chair of the IFRS Foundation Trustees, stated that the agreement reinforces the ISSB’s commitment to integrate nature considerations into its global baseline for sustainability disclosures. TNFD Co-Chair Razan Al-Mubarak welcomed the partnership as “a major step toward making nature visible in business decisions and capital flows.”

At the same time, the ISSB confirmed its decision to launch a formal standard-setting process on nature-related risks and opportunities. This process will build on the TNFD framework, including its LEAP (Locate, Evaluate, Assess, Prepare) approach, which guides organisations through the practical steps of assessing and disclosing their nature dependencies and impacts.

As of late 2025, more than 700 organisations worldwide have adopted the TNFD recommendations, representing a combined USD 22 trillion in assets under management and USD 9 trillion in market capitalisation. The growing momentum reflects a clear signal from the market: investors and regulators increasingly expect companies to treat nature-related risks with the same importance as climate risks.

Emmanuel Faber, Chair of the ISSB, emphasised that there is “a clear investor demand for information about nature-related risks and opportunities.” He noted that aligning with the TNFD framework ensures global consistency and reduces reporting fragmentation.

Under the new arrangement, TNFD’s technical work will continue through 2026 before gradually transitioning to support the ISSB’s nature-related standard-setting process. A draft nature-related disclosure standard is expected to be released for public consultation ahead of COP17 of the Convention on Biological Diversity in 2026, with full alignment anticipated by 2027.

Read full press release by TNFD here