ISSB’s March meeting focused on nature related disclosures and enhancement of SASB standards

The related ISSB Update is available here. 

The Board agreed on the following (tentative) decisions with respect to nature-related disclosures: 

• nature-related metrics: the ISSB decided that entities would be required to apply the existing requirements in IFRS S1 when disclosing metrics for nature-related risks and opportunities. This includes the obligation to refer to and consider the applicability of metrics in the SASB standards, while also allowing entities to consider other sources of guidance as already set out in IFRS S1. The Board also agreed to explore whether any cross industry metrics should be required within the scope of this project, but not to expand work on cross industry metrics beyond identified information areas at this stage;  
• information on nature-related transition: the ISSB decided to develop incremental requirements and guidance on how an entity disclose the effects of nature-related risks and opportunities on its strategy and decision making. This would include information on an entity’s responses and planned actions, regardless of whether these are part of a formal transition plan, and would be incremental to the general requirements already set out in IFRS S1. In this context, the ISSB agreed to provide illustrative drafting of incremental requirements and guidance for disclosing such information, as a basis for the development of proposals in an exposure draft;  
• information on nature-related targets: the ISSB decided to provide incremental guidance on the the breadth of what nature-related targets could relate to and the disclosure of location-specific information associated with such targets.  

The ISSB also discussed its work on enhancing the SASB standards, which supports entities applying IFRS S1 and IFRS S2 by providing industry specific guidance, in the course of the aforementioned publication of an Exposure Draft proposing amendments to the final three of the 12 SASB standards identified as initial priorities under the ISSB’s 2024–2026 work plan.