Key Impact Points:
- UNDP and BMUV are backing ISSB’s nature-related disclosure projects with new funding to align corporate reporting with biodiversity and ecosystem risks.
- ISSB will build on TNFD recommendations, SASB Standards, and collaborate with GRI to improve market-aligned biodiversity metrics, focusing on nature-intensive sectors.
- The initiative supports the Kunming-Montreal Global Biodiversity Framework by enabling investors to understand nature-related financial risks and opportunities.
UNDP and BMUV Deepen Support for Nature-Based Corporate Reporting
The United Nations Development Programme (UNDP) and the German Federal Ministry for the Environment (BMUV), through the International Climate Initiative (IKI), have announced new support for the IFRS Foundation and the International Sustainability Standards Board (ISSB)’s Nature-related Disclosure Projects. This marks a new phase in the UNDP-IFRS Foundation partnership.
Aligning with TNFD and Strengthening Market Resilience
The funding will enable ISSB to deepen its collaboration with the Taskforce on Nature-related Financial Disclosures (TNFD), embedding nature into investment and corporate decisions. The aim is to align ISSB’s standards with TNFD recommendations, meeting the growing demand from capital markets for nature-related risk and opportunity disclosures.
“Understanding nature-related dependencies, impacts, risks, and opportunities is key to integrating nature into our economic and financial systems,” said Marcos Neto, UN Assistant Secretary-General and Director of UNDP’s Bureau for Policy and Programme Support.
Integrating Nature into Global Standards
The ISSB’s Nature-related Disclosure Projects will explore how nature dependencies and impacts affect company risks and opportunities. The work will draw from IFRS S1 and S2, SASB Standards, and include close collaboration with the Global Reporting Initiative (GRI), particularly GRI 101 Biodiversity Standards. The initiative will also enhance the SASB Standards, with a phased approach focusing on BEES (Biodiversity, Ecosystems, and Ecosystem Services) metrics in nature-intensive sectors.
“The partnership between ISSB and TNFD is a timely and important step towards integrating nature into mainstream corporate reporting,” said Elke Steinmetz, Head of Division for International Cooperation on Biodiversity at BMUV.
Investor Demand for Biodiversity Data Is Growing
ISSB Chair Emmanuel Faber emphasized investor interest in nature disclosures is rising, though still in early stages and varies across sectors.
“Building on our ongoing partnership with TNFD, we will continue to consider how to utilise their recommendations as we work to strengthen our global baseline of sustainability disclosures,” said Faber.
Expanding Global Disclosure Capacity
This initiative builds on a 2022 partnership framework between UNDP and the IFRS Foundation, and a 2024 Letter of Intent to drive sustainability disclosure convergence. Through UNDP’s Sustainability Disclosure and Management Hub (SDMH), the partnership supports countries in creating globally aligned disclosure frameworks. The new focus on biodiversity and nature signals a deeper commitment to supporting a nature-compatible global economy.
