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Nature has now entered the global reporting architecture with momentum. The shift is clear and significant - nature-related risks and opportunities are rapidly moving from voluntary practice into the mainstream expectations of financial reporting. Businesses should understand that the landscape is changing quickly and that global alignment is beginning to consolidate.
On 6 November 2025, the International Sustainability Standards Board (ISSB) met to consider the information that primary users of financial reports require regarding nature-related risks & opportunities. In doing so, the ISSB explored how it might draw directly from the recommendations of the Taskforce on Nature- related Financial Disclosures (TNFD), including TNFD’s metrics and the LEAP approach. This marks the first major step by the ISSB to develop a global baseline for nature-related disclosures.
The ISSB has announced that it will move into a formal standard-setting process for nature-related disclosures. All eleven board members present supported the decision. The ISSB has not yet confirmed whether the outcome will be a standalone nature standard or amendments to existing IFRS standards, but the direction of travel is clear.
The decision respond directly to strong investor demand for high-quality, decision-useful information on nature-related risks and opportunities, and that using the TNFD framework will help reduce fragmentation and build on leading market practice.
The ISSB has indicated its intention to publish an initial Exposure Draft by the Convention on Biological Diversity COP17 in October 2026. This timeline suggests that new expectations for nature-related reporting are likely to emerge at pace, with regulators in multiple jurisdictions expected to track closely behind the ISSB’s work.
In parallel, the TNFD has announced that it will complete all current technical work by the third quarter of 2026 before pausing any new technical development. During this period, the TNFD will focus on supporting the ISSB’s standard-setting process. Once the ISSB concludes its nature-related standards, the TNFD intends to complete and close its technical programme. This mirrors the earlier transition of the TCFD’s work into the ISSB framework and reinforces the continued consolidation of the global sustainability reporting ecosystem.
For businesses, the implications of these developments are important:
The ISSB’s decision confirms a clear global direction of travel. Nature-related disclosures are moving from voluntary practice towards integration in mainstream corporate reporting, echoing the earlier trajectory of climate disclosures. Since the adoption of the Kunming–Montreal Global Biodiversity Framework, expectations on companies have increased steadily; the ISSB’s move now signals that businesses must take nature seriously and act in a structured, transparent and credible way.
The decision reflects explicit and growing investor demand for nature-related information. Investors increasingly recognise that nature loss presents material financial risks and that reliable information is required to assess exposure. Companies will therefore need to demonstrate how they understand and manage their nature-related dependencies, impacts, risks and opportunities in order to maintain access to capital, favourable financing terms and long-term investor confidence. Failure to provide this visibility is likely to result in increased scrutiny, higher cost of capital and the potential reallocation of investment away from businesses that cannot demonstrate resilience.
Case study: PFZW Drops BlackRock Over Sustainability Misalignment
In September 2025, Dutch pension fund PFZW announced it would not renew a listed-equity mandate of about €14–14.5 billion with BlackRock, citing misalignment around sustainability voting and stewardship. The fund said its new investment strategy gives equal weight to returns, risk and sustainability, and it is now selecting external managers based on shared sustainability ambitions.
The developments significantly reduce fragmentation and help harmonise expectations across the reporting landscape. Over recent years, businesses have struggled to navigate the growth of frameworks, metrics and standards related to nature. The emerging alignment between TNFD, ISSB (and ISO) now creates a single pathway for organisations to follow. By building one integrated, TNFD- aligned approach, businesses can prepare themselves for future ISSB requirements and regulatory developments. This reduces internal confusion, lowers long-term reporting burden and provides leadership teams with greater confidence that they are building towards a global baseline rather than chasing multiple disconnected expectations.
Early adopters will gain a meaningful strategic advantage. TNFD is already closely aligned with IFRS S1, and the ISSB has confirmed that it will build directly from TNFD as it develops nature-related standards. Companies that begin assessing their dependencies, impacts, risks and opportunities now will be better positioned when disclosure becomes formalised. They will be more resilient to emerging nature-related shocks, more attractive to investors, and better placed to integrate nature into long-term strategy and risk management. Early action provides a genuine head start rather than simply supporting compliance
Use structured tools such as Fola’s Nature Diagnostic to identify dependencies, impacts and strategic risk exposures.
Nature will soon sit alongside climate in board-level discussions and financial filings. Start preparing now.
Assess areas where nature-positive action can create commercial value and help build the internal business case for action
