ISSB has further discussions about nature-related disclosures

Regarding scenario analysis, the ISSB tentatively decided not to introduce additional requirements or guidance to those of IFRS S1 when disclosing information about the undertaking’s use of scenario analysis for identifying nature-related risks. However, it tentatively agreed to require disclosures on whether and how scenario analysis is used to identify nature-related opportunities. It also decided to introduce additional disclosure requirements on how scenario analysis is used to assess the nature, likelihood, and magnitude of the effects of nature-related risks, including inputs used, keys assumptions, and scope of application. 

The Board ISSB also tentatively put forward the requirement for an entity to provide information on their resilience to nature-related risks by using scenario analysis. The relevant requirements will be developed by the Board in a manner consistent with IFRS S2, including its proportionality mechanisms, while recognising that such assessments would be more location- and asset-specific. 

Finally, the ISSB discussed the identification of nature-related risks and opportunities, noting that the Taskforce on Nature-related Financial Disclosures (TNFD) LEAP approach1 could be relevant in providing nature-related disclosures in accordance with the objective of IFRS S1 and therefore form a helpful tool to support application of the Practice Statement. Its use would however remain optional and not mandatory for compliance with either the Practice Statement or the IFRS Sustainability Disclosure Standards.