Biodiversity, Ecosystems and Ecosystem Services

The International Sustainability Standards Board (ISSB) decided to move the biodiversity, ecosystems and ecosystem services (BEES) project from research to standard-setting in its work plan. The standard-setting phase of the project will involve developing disclosure requirements to respond to the needs of investors for information on nature-related risks and opportunities. These requirements will supplement the requirements in IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures, to be applied to nature-related risks and opportunities.

Biodiversity, ecosystems and ecosystem services are intrinsically linked. Biodiversity is a foundational characteristic of natural systems and it is a proxy for functional, productive and resilient ecosystems able to provide the ecosystem services upon which life on earth relies. Many economic activities depend on or otherwise affect BEES. Therefore, efforts to preserve, conserve and restore BEES can help manage risks or give rise to opportunities for companies. These risks and opportunities can reasonably be expected to affect a company’s prospects as described in IFRS S1 and might result in material information for investors.