IFRS Foundation and TNFD Formalize Collaboration to Advance Nature-Related Financial Disclosures

The IFRS Foundation and the Taskforce on Nature-related Financial Disclosures (TNFD) have signed a landmark Memorandum of Understanding (MoU), formalizing a strategic collaboration aimed at enhancing nature-related financial disclosures for global capital markets.

The agreement reinforces the IFRS Foundation’s commitment to incorporate high-quality, nature-related information into the sustainability reporting landscape through the work of the International Sustainability Standards Board (ISSB). The MoU signals a deepening of engagement between the two organizations, building on an already robust partnership dating back to TNFD’s formation in 2021.

“Transparency and accountability are key to building stable, resilient capital markets,” said Erkki Liikanen, Chair of the IFRS Foundation Trustees. “Our collaboration with TNFD will help reduce disclosure complexity while elevating the quality of nature-related reporting.”

Leveraging TNFD Expertise to Inform Global Standards

The TNFD’s recommendations, released in September 2023 after extensive multi-stakeholder input from over 50 jurisdictions, provide a comprehensive framework for identifying and disclosing nature-related risks and opportunities. These recommendations draw upon several established IFRS and SASB resources, including the SASB sector classification, CDSB biodiversity guidance, and the IFRS S1 General Requirements.

The collaboration will inform ISSB’s ongoing Biodiversity, Ecosystems and Ecosystem Services (BEES) research project, which commenced in 2024. In early 2025, the TNFD presented its progress to ISSB members, laying the foundation for more integrated and informed development of sustainability reporting standards.

Sue Lloyd, ISSB Vice-Chair, emphasized: “Strengthening the global baseline of sustainability disclosures with nature-related metrics is a core focus of our work plan. Our partnership with TNFD enhances our ability to meet investor needs with clarity and relevance.”

Aligning with Global Biodiversity Goals

The partnership aligns with global sustainability efforts, particularly Target 15 of the Kunming-Montreal Global Biodiversity Framework, which calls for businesses to assess and disclose their dependencies and impacts on biodiversity.

David Craig, TNFD Co-Chair, noted: “TNFD’s role, much like the TCFD before it, is to guide market-ready, decision-useful disclosure frameworks. With hundreds of TNFD adopters already reporting, we are well positioned to contribute to ISSB’s evolving sustainability standards.”

Razan Al-Mubarak, TNFD Co-Chair and President of the IUCN, added: “Nature is integral to economies and future growth. Making nature visible in financial reporting will help redirect capital toward more sustainable outcomes.”

What Comes Next?

Under the MoU, ISSB and TNFD will:

• Share research, knowledge, and technical expertise

• Collaborate on market engagement and capacity-building initiatives

• Explore joint work to enhance the SASB Standards for nature-related issues

All outputs of the ISSB’s nature-related research will be subject to the IFRS Foundation’s due process, including stakeholder consultations.

The TNFD will continue to advance additional guidance and improve data infrastructure to support widespread adoption of nature-related reporting across markets.

As nature-related risks grow in importance for businesses and investors alike, this collaboration marks a pivotal step in integrating nature into mainstream financial disclosures.

To find out more details please visit :https://www.ifrs.org/