ISSB to propose IFRS Practice Statement on nature-related disclosures

The International Sustainability Standards Board (ISSB) has agreed to suggest requirements for nature-related disclosures done an IFRS Practice Statement.

The determination was taken astatine the ISSB’s committee gathering held successful Beijing, China.

The ISSB’s existing requirements already obligate companies to study connected each worldly sustainability-related risks and opportunities, which see nature-related issues that could power a company’s prospects.

The planned Practice Statement would complement IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures.

Under the proposal, erstwhile entities are required to disclose accusation connected nature-related risks and opportunities nether IFRS S1, the Practice Statement would acceptable retired however specified disclosures should beryllium prepared and presented.

The ISSB indicated that utilizing this signifier of standard-setting is designed to bounds disruption for companies and regulators that are presently rolling retired oregon considering adopting its standards.

The determination follows the ISSB’s enactment to clarify what constitutes worldly accusation connected nature-related risks and opportunities, informed by the Taskforce connected Nature-related Financial Disclosures framework.

The ISSB is targeting October 2026 for the work of an vulnerability draft, which volition beryllium released for nationalist consultation.

Stakeholders volition beryllium invited to remark connected the projected nature-related disclosure requirements and connected whether an IFRS Practice Statement is an due mechanics for mounting guidance successful this area.

ISSB seat Emmanuel Faber said: “Providing worldly nature-related disclosures is not optional; IFRS S1 already requires that. A Practice Statement volition usher companies connected however to supply specified disclosures.”

According to the ISSB, applying the Practice Statement would person the aforesaid effect arsenic complying with an ISSB Standard for entities that take to usage it, portion besides allowing a way to a imaginable aboriginal standard-setting result based connected that guidance.

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