TNFD adopters may be ahead of the curve as ISSB advances nature reporting

Many organisations have been watching the evolution of nature-related reporting with interest, but also a degree of caution. With multiple frameworks, shifting expectations and an increasing focus on sustainability disclosures, a common question has been: 

If we invest time and resources into TNFD, will it still be relevant in a few years' time? 

Recent decisions by the International Sustainability Standards Board (ISSB) suggest the answer is increasingly becoming yes. The ISSB has indicated that organisations may use Taskforce on Nature-related Financial Disclosures (TNFD) metrics to support future nature-related reporting and has confirmed that it will continue to draw on TNFD elements as it develops guidance on nature-related disclosures. 

Importantly, this goes beyond earlier ISSB announcements, which simply indicated that future guidance would draw on TNFD concepts. The latest decisions suggest a closer alignment between the two frameworks and provide additional confidence for organisations that have already invested in TNFD-aligned approaches. 

Why nature is becoming a bigger reporting focus 

The sustainability reporting conversation has largely been dominated by climate in recent years. However, investors, regulators and other stakeholders are increasingly asking organisations to explain how nature-related issues could affect business performance and long-term value creation. 

That includes topics such as biodiversity loss, water availability, land use, ecosystem degradation and supply chain dependencies. For some organisations, these issues may already be financially material today. In fact, IFRS S1 already requires organisations to disclose material sustainability-related risks and opportunities, including nature-related matters, where relevant. 

What the ISSB is now doing is providing a clearer pathway for how organisations can approach those disclosures in a more consistent way. 

A positive signal for organisations already using TNFD 

For organisations that have already started adopting TNFD—or are considering doing so—the latest announcement is encouraging. 

Rather than creating an entirely new approach, the ISSB appears to be building on work many organisations have already undertaken. That means activities such as identifying nature-related risks, assessing impacts and dependencies across the value chain, and establishing governance processes may therefore provide a useful foundation for organisations as reporting expectations continue to develop. 

In other words, organisations that have already begun their TNFD journey may find themselves better prepared if nature-related disclosures become more prominent within mainstream reporting frameworks. 

Three questions organisations should be asking now 

1. Are nature-related risks already material to our organisation?

Many organisations assume nature-related reporting is an issue for the future. However, sectors with significant land use, resource dependencies, biodiversity impacts or complex supply chains may already have nature-related risks and opportunities that warrant consideration under existing sustainability reporting requirements. 

2. Have we considered nature as part of our wider sustainability strategy?

Nature-related risks are rarely isolated issues. They often intersect with climate, supply chain resilience, operational performance and long-term business strategy. Organisations that start having these conversations early are likely to be better positioned as stakeholder expectations continue to evolve. 

3. Are our governance and reporting processes future-ready?

As reporting expectations mature, organisations may need to demonstrate not only the nature of the risks, but also how they are identified, assessed and overseen. Starting that work now can be significantly easier than retrofitting processes later. 

Was TNFD worth the investment? 

For organisations that have already invested time and resources into TNFD, the ISSB's latest direction suggests the answer is increasingly yes. 

While nature-related reporting requirements continue to evolve, the board's decision to draw on TNFD guidance and metrics suggests that organisations already building capability in this area may be better positioned than those waiting for a finalised reporting framework before taking action. 

Continue the conversation 

The ISSB's latest announcement raises important questions for organisations that have already started their TNFD journey, as well as those still deciding where nature-related reporting fits within their sustainability strategy. If you'd like to discuss the implications for your organisation, please contact our sustainability team.