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For decades, sustainability reporting focused primarily on climate change. Carbon emissions, energy efficiency, and transition risks dominated the conversation. But today, a new reality is emerging: nature is no longer a peripheral issue—it is becoming central to business strategy and investor decision-making. The recent announcement on 7 November 2025 by the International Sustainability Standards Board (ISSB) to integrate nature-related disclosures into its global baseline marks a turning point in how markets value natural capital.
Why This Matters
Nature underpins every aspect of economic activity. From water and soil to biodiversity and ecosystem services, businesses depend on these resources to operate and grow. Yet, the degradation of nature poses systemic risks; supply chain disruptions, resource scarcity, and reputational damage are just the beginning. Investors increasingly recognise that companies ignoring nature-related risks are exposed to financial volatility. This is why the ISSB’s move is so significant: it signals that nature is now a material financial issue, not just an environmental one.
The ISSB-TNFD Alignment
The ISSB, created by the IFRS Foundation in 2021, aims to deliver a global baseline for sustainability-related financial disclosures. Until now, its standards IFRS S1 and IFRS S2 focused on general sustainability and climate-related information. But responding to investor demand, the ISSB announced it will develop incremental disclosure requirements for nature-related risks and opportunities, drawing heavily on the framework developed by the Taskforce on Nature-related Financial Disclosures (TNFD).
The TNFD has been a pioneer in guiding companies to assess and disclose their dependencies and impacts on nature. Its LEAP approach (Locate, Evaluate, Assess, Prepare) provides a structured methodology for integrating nature into risk management.
In the same way that the Task Force on Climate-related Financial Disclosures (TCFD) created a trusted framework and unified language for climate reporting, the TNFD now provides an equivalent foundation for nature-related disclosures.
What Happens Next?
The ISSB plans to publish an Exposure Draft of these new requirements by COP17 in October 2026, following public consultation. This timeline reflects the urgency of the issue: biodiversity loss and ecosystem collapse are accelerating, and businesses cannot afford to wait. In the meantime, companies are encouraged to start using the TNFD framework to prepare for future ISSB standards. Doing so will not only ease compliance but also strengthen resilience and investor confidence.
The Bigger Picture
This development is more than a technical update: nature is moving from the margins of sustainability conversations to the heart of financial reporting. The message is clear: protecting nature is not just about corporate responsibility; it is about long-term value creation and risk management.
As Emmanuel Faber, ISSB Chair, stated: “There is a clear investor need for information about nature-related risks and opportunities.” Meeting this need will help capital markets allocate resources more efficiently and support the transition to a nature-positive economy.
What Should Companies Do Now?
- Start early: Familiarise yourself with TNFD’s recommendations and the LEAP approach.
- Integrate nature into strategy: Map dependencies, impacts and risks across your value chain.
- Engage stakeholders: Investors, regulators, and customers increasingly expect transparency on nature-related issues.
The adoption of TNFD by ISSB is a strong signal: nature is becoming a financial priority. Companies that act now will not only comply; they will lead.
Our Sustainability team at RSM Belgium can help you with TNFD alignment, ISSB standards, and nature-related risk management.
