Nature-related Disclosures

The ISSB met on 24–25 June 2026 to discuss:

• terms and concepts to be used in the proposed IFRS Practice Statement;
• sources of guidance for metrics; and
• first application of the Practice Statement and statement of compliance.

Update on terms and concepts essential to standard-setting on nature (Agenda Paper 3A)

The ISSB discussed terms and concepts essential to understanding the scope of standard-setting on nature, following on from discussions at the February 2026 ISSB meeting.

The ISSB tentatively decided that the Practice Statement would use the term ‘environmental resources’ in place of ‘environmental assets’.

All 12 ISSB members agreed with this decision.

The ISSB also tentatively decided that the Practice Statement would define ‘nature-related transition risks’ and ‘nature-related physical risks’.

Eight of 12 ISSB members agreed with this decision.

Supplement to AP3A—Illustrative drafting of defined terms and application guidance on nature-related risks and opportunities (Agenda Paper 3B)

The ISSB discussed illustrative drafting of defined terms and application guidance on nature-related risks and opportunities.

The ISSB was not asked to make any decisions.

Sources of guidance for metrics (Agenda Paper 3C)

The ISSB discussed sources of guidance in the context of nature-related disclosures. The ISSB tentatively decided that the Practice Statement would permit an entity to refer to and consider the applicability of the Taskforce on Nature-related Financial Disclosures (TNFD) disclosure metrics to the extent that this source:

1. assists the entity in meeting the objective of IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information (see paragraphs 1–4 of IFRS S1); and
2. does not conflict with IFRS Sustainability Disclosure Standards or the Practice Statement.

Eleven of 12 ISSB members agreed with this decision.

The ISSB also tentatively decided that IFRS S1 would retain the reference to the CDSB Framework Application Guidance as a source of guidance.

All 12 ISSB members agreed with this decision.

Supplement to AP3C—Consideration of the TNFD framework in standard-setting on nature-related disclosures (Agenda Paper 3D)

The ISSB discussed an overview of how it has considered TNFD materials in standard-setting on nature-related disclosures.

The ISSB was not asked to make any decisions.

First application of the IFRS Practice Statement and statement of compliance (Agenda Paper 3E)

The ISSB tentatively decided that:

1. the Practice Statement would be available for application from the date of its issuance for entities applying IFRS S1 and IFRS S2 Climate-related Disclosures.
2. an entity would not be required to provide the disclosures specified in the Practice Statement for any period before the date of initial application of the Practice Statement. Accordingly, an entity would not be required to disclose comparative information for the disclosures specified in the Practice Statement in the first annual reporting period in which the entity applies the Practice Statement.
3. an entity whose sustainability-related financial disclosures comply with all the requirements in IFRS Sustainability Disclosure Standards and all the requirements in the Practice Statement would be required to make an explicit and unreserved statement of compliance with IFRS Sustainability Disclosure Standards and the Practice Statement.
4. an entity applying the Practice Statement would be prohibited from describing sustainability-related financial disclosures as complying with the Practice Statement unless the entity complies with all the requirements in the IFRS Practice Statement and all the requirements in IFRS Sustainability Disclosure Standards.
5. the Practice Statement would include exemptions consistent with those set out in paragraph 73 of IFRS S1 in relation to information that is otherwise required by the Practice Statement.

All 12 ISSB members agreed with this decision.