• Strategic Alignment: ISSB will integrate TNFD recommendations into its sustainability standards, enhancing nature-related risk reporting for global capital markets.
• Market-Driven Collaboration: The MoU formalizes years of knowledge-sharing and research alignment, with both groups committed to reducing fragmentation in sustainability reporting.
• Investor-Ready Insights: Enhanced disclosures aim to meet investor demand for consistent, decision-useful data on biodiversity, ecosystems, and nature-related risks.

The IFRS Foundation and the Taskforce on Nature-related Financial Disclosures (TNFD) have formalized their partnership through a Memorandum of Understanding (MoU), strengthening their joint efforts to integrate high-quality nature-related information into capital markets.

“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,” said Erkki Liikanen, Chair of the IFRS Foundation Trustees.
“Transparency and accountability are a key means of enabling more stable, resilient and efficient capital markets… while building on established expertise and practice.”

The International Sustainability Standards Board (ISSB)—an arm of the IFRS Foundation—will now consider the TNFD’s recommendations in developing its standards, including its ongoing BEES research project (Biodiversity, Ecosystems and Ecosystem Services). This move aligns efforts to meet the evolving needs of global investors seeking clearer visibility into nature-related risks and opportunities.

Sue Lloyd, ISSB Vice-Chair, said:
“Our collaboration with the TNFD is a clear signal to the market that we are committed to reducing fragmentation in sustainability disclosure while meeting the need for relevant and high-quality information for capital markets.”
“Strengthening the global baseline of sustainability disclosures with nature-related disclosures… is a core focus of our work plan.”

Since TNFD’s inception in 2021, ISSB has been a Knowledge Partner, with its SASB sector classifications, CDSB biodiversity guidance, and IFRS S1 informing TNFD’s recommendations released in September 2023. TNFD further contributed to the ISSB’s BEES initiative with a comprehensive presentation in February 2025.

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“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,” said David Craig, Co-Chair of the TNFD.
“Better disclosures about nature issues, which will result from our collaboration with the ISSB, will support the achievement of Target 15 of the Kunming-Montreal Global Biodiversity Framework.”

Under the MoU, the two organisations will:

• Share research, knowledge, and technical expertise
• Collaborate on SASB standards enhancement and BEES
• Jointly engage markets and build capacity alongside other key partners
• Uphold the IFRS Foundation’s due process and public consultation on any standard-setting activity

Razan Al-Mubarak, TNFD Co-Chair and President of the IUCN, added:
“Nature is essential to our economies and our future. Our collaboration with the ISSB is a major step toward making nature visible in businesses reporting and how capital is allocated.”

The TNFD will also continue its market engagement and pilot testing, advancing preparer guidance and tackling data quality and accessibility challenges.

“Stronger standards mean stronger businesses—and a healthier, more resilient planet for all of us,” said Al-Mubarak.

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