15 Financial Institutions Urge ISSB to Develop Global Nature Disclosure Standard

A coalition of 15 financial institutions, including Storebrand Asset Management, Federated Hermes, Rabobank, Nordea Asset Management, and Domini Impact Investments, has called for the International Sustainability Standards Board (ISSB) to develop a dedicated global Nature Standard. Announced on 25 October 2026 by the Finance for Biodiversity Foundation, the initiative seeks to establish consistent, comparable corporate disclosures on biodiversity, ecosystems, and nature-related financial risks.

The joint statement was presented to ISSB Vice-Chair Sue Lloyd at the UN Biodiversity Conference COP17, following the launch of the ISSB's consultation on nature-related disclosures on 22 October. The consultation, open until 19 February 2027, seeks feedback on whether the ISSB should finalize the proposed reporting framework as a Practice Statement or develop it into a dedicated sustainability disclosure standard.

 

Investors Push for Consistent Nature-Related Financial Disclosures

 

The 15 initial signatories represent asset managers, banks and other financial institutions seeking more reliable information about companies' dependencies and impacts on nature, alongside associated financial risks and opportunities. The coalition argues that inconsistent disclosure practices make it difficult for investors to assess exposure to biodiversity loss, water scarcity, ecosystem degradation and other environmental pressures across companies and investment portfolios.

The statement includes Achema, Achmea Investment Management, Aequo Shareholder Engagement, Cardano, Domini Impact Investments, Etica Funds, Federated Hermes, La Banque Postale Asset Management, Nordea Asset Management, Rabobank, Rathbones, Storebrand Asset Management, Swedbank Robur Asset Management, Tribe Impact Capital and Univé. The Finance for Biodiversity Foundation invites additional financial institutions to endorse the statement by 15 January 2027, ahead of the consultation deadline.

 

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Dedicated Nature Standard Versus Voluntary Practice Statement

 

The central issue concerns the form of the ISSB's proposed nature-related disclosure framework. The ISSB published its Exposure Draft, IFRS Sustainability Disclosure Practice Statement 1 Nature-related Disclosures, to help companies report financially material information about nature-related risks and opportunities. The proposals build on IFRS S1, which already requires companies applying the standard to disclose material sustainability-related risks and opportunities, including those associated with nature.

Unlike an ISSB Standard, compliance with a Practice Statement is not necessary for a company to claim compliance with ISSB Standards. The investor coalition argues that a dedicated Nature Standard would provide a stronger basis for consistent reporting across jurisdictions. However, even a formal ISSB Standard would need adoption or other jurisdictional requirements to become legally mandatory for companies. The ISSB has not yet decided to issue a separate Nature Standard and will consider stakeholder feedback before determining the final approach.

 

Nature Risks Become More Important to Investment Decisions

 

The ISSB's proposals draw heavily on the Taskforce on Nature-related Financial Disclosures (TNFD) framework, including its focus on where business activities occur and how they interact with ecosystems, Indigenous Peoples, and local communities. The approach is designed to improve investors' understanding of how environmental dependencies and impacts can affect a company's financial prospects, operations and long-term resilience.

Sonya Likhtman, Stewardship Director at Federated Hermes and Co-chair of the Finance for Biodiversity Foundation's Public Policy Advocacy Working Group, emphasized the need for better corporate information. She said, "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." The coalition also argues that climate risk assessments are incomplete without considering interconnected issues such as water availability, land use and pollution.

 

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Global Biodiversity Framework Adds Pressure for Reporting Reform

 

The coalition links its appeal to Target 15 of the Kunming-Montreal Global Biodiversity Framework, which calls for measures that encourage and enable businesses, particularly large and transnational companies and financial institutions, to assess and disclose their biodiversity-related risks, dependencies, and impacts. According to the Finance for Biodiversity Foundation, the 2026 Global Review of Collective Progress identifies limited implementation of these commitments, with relatively few countries introducing comprehensive nature-related assessment and disclosure requirements.

Anita de Horde, Co-founding Executive Director of the Finance for Biodiversity Foundation, said a dedicated standard was "the format most suited to provide a consistent global reporting baseline". The foundation is calling on governments and regulators to support stronger international disclosure requirements. At the same time, its Impact Assessment and Public Policy Advocacy Working Groups will coordinate investor feedback during the ISSB consultation.

The announcement reflects growing institutional investor interest in making nature-related information more comparable and useful for financial decision-making. A dedicated standard could support more consistent assessments across companies and sectors, but its effectiveness would depend on the final requirements, availability of reliable environmental data, and adoption by jurisdictions.

The immediate milestone is the ISSB consultation, which closes on 19 February 2027. The outcome will help determine whether nature-related reporting develops through a dedicated international standard or remains supported by additional guidance under the existing ISSB framework.

 

Source: Finance for Biodiversity Foundation