The IFRS Foundation and the Taskforce on Nature-related Financial Disclosures (TNFD) have formalised a collaboration through a memorandum of understanding (MOU).  

Under the agreement, the parties aim to integrate TNFD recommendations into the International Sustainability Standards Board’s (ISSB) ongoing work, aiming to provide capital markets with nature-related financial disclosures. 

The ISSB has collaborated with the TNFD as a knowledge partner since the taskforce was established in late 2021.  

Its contributions, including the SASB sector classification system, earlier biodiversity guidance developed by the CDSB, and the IFRS S1 standard on general sustainability disclosure requirements, played a key role in shaping the TNFD’s recommendations released in September 2023. 

IFRS Foundation trustees chair Erkki Liikanen said: “We are delighted to be formalising our partnership with TNFD to ensure that the ISSB gives due consideration to the work TNFD have put into creating recommendations for nature-related financial disclosures.  

“Transparency and accountability are a key means of enabling more stable, resilient and efficient capital markets, and this collaboration will advance the ISSB’s ongoing work to reduce the complexity of the sustainability disclosure landscape, while building on established expertise and practice.” 

TNFD co-chair David Craig said: “Like the TCFD before us, the TNFD was initiated ahead of specific reporting standards to develop market-based recommendations for decision-useful and practical corporate reporting practices on nature-related aspects beyond GHG emissions.  

“Having engaged thousands of market participants in the development of our recommendations over the past four years from across 50 jurisdictions and with first-generation TNFD reports now published from among the 500 TNFD Adopters, we welcome this deepened collaboration with the ISSB to inform their evolving sustainability reporting standards.  

“One of the objectives of the TNFD is to help achieve Target 15 of the Kunming-Montreal Global Biodiversity Framework and we believe that better disclosures about nature issues, which will result from our collaboration with the ISSB, will support the achievement of that goal.” 

In 2024, the TNFD began supporting the ISSB’s Biodiversity, Ecosystems and Ecosystem Services (BEES) research project.  

By February 2025, TNFD presented an overview of its work to ISSB members, paving the way for further collaboration based on shared understanding.  

Under the MoU, both organisations will exchange research, knowledge, and technical expertise to inform the ISSB’s BEES initiative and nature-related aspects of SASB standards.  

They will also explore joint market engagement and capacity-building initiatives with other key partners. 

The ISSB focuses on addressing investors’ information needs regarding companies’ sustainability-related risks and opportunities, specifically targeting primary users as defined in ISSB Standards.  

Any nature-related disclosures resulting from ISSB’s research will undergo the IFRS Foundation’s due process, including public consultation. 

Alongside its collaboration with the ISSB, the TNFD continues its global market engagement and capacity-building efforts on nature-related issues.  

This includes developing and pilot testing additional guidance for preparers and advancing data-related issues to improve market access to high-quality nature-related data.