The International Sustainability Standards Board (ISSB) has launched a research project to assess whether new standards are needed to improve companies’ disclosure of risks relating to biodiversity and ecosystems.
The ISSB, which is tasked with creating standards that allow investors to better compare the sustainability of companies worldwide, said it was also launching a similar research project to determine the work still needed on standards around human capital.
“Beyond climate, we are committed to building out the global baseline of sustainability-related financial disclosure to meet the needs of investors,” said ISSB chair Emmanuel Faber.
“Feedback indicated a significant and growing need among investors for improved disclosures around biodiversity, ecosystems and ecosystems services as well as human capital, as a key source of value for companies.”
The board said it would look at how it might build on existing initiatives such as guidance from the Sustainability Accounting Standards Board (SASB) and Climate Disclosure Standards Board (CDSB), which are already under its purview.
But it signalled that any new standards could also build on the work of the Task Force on Nature-related Financial Disclosures (TNFD), which welcomed the suggestion.
“The ISSB announcement is another important step forward for nature-related corporate reporting,” the TNFD said in a statement.
“The further incorporation of nature-related issues into the global reporting baseline, drawing on the work of the TNFD, will provide investors and report preparers with a more integrated approach across governance, strategy, risks management and metrics and targets.”
The TNFD said the move would also contribute towards meeting commitments on nature-related corporate reporting agreed under the Kunming-Montreal Global Biodiversity Framework, the historic global pact on biodiversity agreed by nearly 200 countries in 2022.
This page was last updated April 29, 2024
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Katy Lee has been a writer for Green Central Banking since early 2024, focused on our Asia coverage. A Paris-based journalist who has written for major international titles for more than a decade, she is the co-host of The Europeans, an award-winning podcast about Europe which often covers environmental issues.
