International Financial Reporting Standards Foundation outlines ISSB optional nature-related disclosure practice statement with October 2026 exposure draft target

In a speech at the IFRS Foundation Conference in London, ISSB Vice-Chair Sue Lloyd outlined the International Sustainability Standards Board's plan to publish an Exposure Draft in October 2026 for a proposed Practice Statement on nature-related disclosures. The proposal is intended to help companies provide investor-focused nature-related information by building on IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information, while avoiding disruption to current implementation of ISSB standards. The ISSB finalised its decisions on the content of the proposals last week. The Practice Statement is being designed for use alongside IFRS S1 and IFRS S2 Climate-related Disclosures, will be optional for companies unless a jurisdiction chooses to require it, and will draw on the Taskforce on Nature-related Financial Disclosures framework. Although structured as a Practice Statement, it will be subject to the same due process as a Standard. The ISSB presented this approach as a way to improve nature-related disclosure and reduce fragmentation in the reporting landscape without overloading companies and jurisdictions that are already focused on implementing IFRS S1 and IFRS S2. Choosing a Practice Statement also leaves open the possibility of a future Standard. The ISSB expects to consult on the proposals later in 2026, with publication of the Exposure Draft targeted for October.