Weekly Knowledge Update · 31 October 2026 · Sustainability Disclosure / Nature Reporting
ISSB’s Nature-Related Disclosure Proposal: Voluntary Guidance for a New Era of Sustainability Reporting
In October 2026, the ISSB released an exposure draft inviting public comment on a Practice Statement for nature-related disclosures, introducing voluntary, location-sensitive sustainability guidance aligned with frameworks like TNFD, GRI, and ESRS.
Checked: 31 October 2026
The International Sustainability Standards Board (ISSB) has taken a significant step in sustainability reporting by opening consultation on a voluntary Practice Statement for nature-related disclosures. This marks the rapid evolution of global reporting frameworks to include not just climate issues, but also how companies depend upon and impact biodiversity, ecosystems, and natural capital. As businesses and finance sectors seek comprehensive and credible information on nature dependencies and impacts, understanding this new proposal is essential for practitioners monitoring sustainability and risk.
Nature Joins the Reporting Agenda
Historically, sustainability disclosures emphasised climate-related risks—chiefly those covered by the TCFD. With its October 2026 proposal, the ISSB is extending its focus to nature, urging companies to consider their operations' broader effects on land, water, biodiversity, and ecosystems. This aligns with growing global attention to the biodiversity agenda and the recognition that climate and nature risks are deeply intertwined.
What Is the ISSB Practice Statement?
The Practice Statement is a guidance document, currently voluntary, that details best practices for reporting nature-related dependencies, impacts, and risks. It sits apart from binding standards but is drafted with rigour equivalent to ISSB's formal Standards, offering practical pathways for companies to enhance transparency while adapting to evolving expectations. Importantly, companies do not need to comply with the Practice Statement to claim ISSB compliance, but it can help position them for future regulatory shifts.
Consultation and the Path to Standard-Setting
The exposure draft was published in October 2026, and stakeholders can send feedback until 19 February 2027. The process is robust: public comments may lead to revisions, clarify alignment with other frameworks, or affect whether guidance matures into a binding disclosure requirement. The project draws heavily from the Taskforce on Nature-related Financial Disclosures (TNFD) and explicitly encourages location-specific analysis and engagement with Indigenous Peoples and local communities.
Navigating Multiple Frameworks
ISSB’s approach is designed to help organizations navigate existing reporting challenges across GRI, ESRS, and voluntary frameworks. A September 2026 ISSB update highlighted forthcoming multi-location model enhancements and outlined the connection of these proposals with ongoing efforts to harmonize global reporting. Integrating this guidance enables companies to streamline their internal processes and avoid duplication when reporting under multiple regimes.
Next Steps and Strategic Considerations
As this is a voluntary guidance under consultation, stakeholders should review the exposure draft and consider engaging in the feedback process. Sustainability and reporting teams can use this period to pilot elements of the guidance, map their operations’ nature dependencies, and assess where their current disclosures may need strengthening to align with anticipated future requirements.
Key takeaways
- The ISSB’s Practice Statement for nature-related disclosures expands sustainability reporting beyond climate, covering biodiversity, ecosystems, and natural capital.
- The draft is voluntary and open for comment until 19 February 2027, offering stakeholders a key chance to shape future guidance.
- It leverages the TNFD framework and expects companies to focus on location-specific impacts and involve affected communities.
- The guidance helps companies harmonize reporting across ISSB, GRI, and ESRS, reducing duplication and improving quality.
- Stakeholders should use the consultation period to build familiarity, pilot disclosure enhancements, and plan strategically for upcoming changes.
Primary sources
- IFRS - ISSB consults on its proposals for nature-related disclosures · IFRS · 2026-10
Core facts on proposal, timeline, legal status, and scope.
- IFRS - September 2026 ISSB Update and podcast now available · IFRS · 2026-09
Announcement of upcoming guidance and multi-location enhancements.
Sources checked 31 October 2026. This article summarizes the October 2026 ISSB Practice Statement proposal and related context for general information and professional awareness. It does not constitute legal or regulatory advice or confirm any company's compliance obligations.