The drive to integrate nature into financial decision-making has taken a major step forward as the International Sustainability Standards Board ( ISSB ) has begun developing formal disclosure standards on nature-related risks and opportunities.

The new standards will be informed by the Taskforce on Nature-related Financial Disclosures ( TNFD ) framework, a move widely welcomed by the taskforce and the growing number of global businesses aligning with its recommendations.

The decision follows the ISSB’s year-long research into biodiversity, ecosystems and ecosystem services, and it marks a shift towards embedding nature into mainstream corporate reporting.

The ISSB plans to publish an exposure draft by October 2026 at the Convention on Biological Diversity COP17, with full standards potentially adopted by 2027.

The TNFD framework, launched just over a year ago, has already seen rapid market uptake with 733 organizations across 56 countries, as of today, having committed to voluntary reporting aligned with TNFD guidance.

These adopters represent over US$9.4 trillion in market capitalization and US$22.4 trillion in assets under management, a 46% and 27% rise, respectively, since COP16 in late 2024.

Asian corporates

Notably, TNFD adoption is gaining traction across Asia. Among signatories are Chinachem Group, Henderson Land, Swire Properties and Vitasoy in Hong Kong, as well as United Overseas Bank, City Developments and Olam Agri in Singapore. Their participation underscores the growing momentum in Asia’s financial and real estate sectors to factor nature into risk assessments and investment decisions.

“This week’s announcement by the ISSB is an important step towards nature being considered and embedded in an integrated way into the global foundations of corporate reporting,” said David Craig, TNFD’s co-chair. “It will help shift the mindset across business about nature as a source of risk, resilience and value, and help inform better strategy, risk management and capital allocation decision making across economies.”

The TNFD’s Leap ( locate, evaluate, assess and prepare ) approach has played a critical role in helping businesses assess nature-related dependencies and impacts. The ISSB’s acknowledgement that TNFD builds upon the existing International Financial Reporting Standards S1 climate standard further positions the TNFD as a bridge for companies preparing for more comprehensive sustainability disclosures.

With the ISSB standards now being adopted or referenced in nearly 40 jurisdictions, this latest move signals a tipping point for nature to be embedded into the fabric of financial markets.

Investors increasingly expect nature-related disclosures alongside climate metrics, and institutions that act now are likely to gain a head start in meeting both emerging regulatory requirements and market expectations.