UNDP, BMUV Back ISSB’s Nature Disclosure Push to Align Finance with Nature

UNDP, BMUV, and IFRS Foundation Expand Collaboration to Advance Nature-Related Financial Disclosures and Global Sustainability Goals.

In a major move to accelerate nature-positive finance and support sustainability in global markets, the United Nations Development Programme (UNDP) and Germany’s Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection (BMUV), through its International Climate Initiative (IKI), have announced their joint support for the International Sustainability Standards Board (ISSB)’s Nature-related Disclosure Projects. This announcement marks a new phase in the strategic partnership between UNDP and the IFRS Foundation, reinforcing a shared mission to promote sustainability-related financial transparency.

The funding from BMUV and programmatic support from UNDP will enable the ISSB to further develop a robust framework for nature-related financial disclosures, in close collaboration with the Taskforce on Nature-related Financial Disclosures (TNFD). This initiative is pivotal in embedding nature-related risks and opportunities into corporate and investment decision-making processes, ensuring that nature is recognized as a critical factor in economic and financial systems.

The Nature-related Disclosure Projects aim to bridge gaps in existing sustainability disclosure frameworks, particularly in relation to biodiversity, ecosystems, and ecosystem services (BEES). These components of natural capital are foundational to global economic stability, providing essential services such as pollination, water purification, flood control, and climate regulation. By making these dependencies more visible and measurable, the ISSB seeks to improve how markets evaluate environmental risks and opportunities, enhancing market resilience and helping capital flow toward sustainable outcomes.

Aligning Global Standards and Market Needs

The project will closely align with the recommendations of the TNFD and IKI’s overarching vision to integrate biodiversity into financial systems. This alignment supports the implementation of the Kunming-Montreal Global Biodiversity Framework, a global strategy to halt and reverse biodiversity loss by 2030. By harmonizing with the Global Reporting Initiative (GRI), particularly the GRI 101 Biodiversity Standards, the ISSB’s initiative will also factor in double materiality—recognizing that businesses both impact and depend on nature.

Furthermore, the project will refine and enhance the existing Sustainability Accounting Standards Board (SASB) Standards and the foundational IFRS S1 and S2 sustainability disclosure standards. A phased focus will be placed on nature-intensive sectors such as agriculture, mining, forestry, and extractives, with targeted development of BEES-related metrics to help stakeholders better price nature-related risks.

ISSB Chair Emmanuel Faber highlighted the growing demand for nature-related disclosure across global capital markets:

“We are grateful to UNDP for their partnership on the ISSB’s work on nature-related financial disclosures. Our research so far has shown us that investor interest in nature-related disclosures is rapidly developing, though still in early stages, with considerable variation among industries. 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.”

Strengthening the Role of Nature in Financial Decision-Making

This expanded collaboration is driven by a shared recognition of the urgent need to integrate nature into business and finance. Marcos Neto, UN Assistant Secretary-General and Director of UNDP’s Bureau for Policy and Programme Support, emphasized the importance of cross-sector collaboration:

“Understanding nature-related dependencies, impacts, risks, and opportunities is key to integrating nature into our economic and financial systems. The collaboration between the private sector, governments, Indigenous Peoples, local communities, international organizations, and NGOs is crucial for advancing international standards that recognize the interconnection between business, nature, and societal well-being.”

The International Climate Initiative (IKI), as Germany’s flagship climate finance mechanism, plays a crucial role in promoting biodiversity-friendly financial systems. Elke Steinmetz, Head of Division for International Cooperation on Biodiversity at BMUV, underscored the importance of the ISSB-TNFD alignment:

“The partnership between ISSB and TNFD is a timely and important step towards integrating nature into mainstream corporate reporting. As the world moves to implement the Kunming-Montreal Global Biodiversity Framework, clear and consistent nature-related disclosure will be essential for aligning financial flows with global sustainability goals. BMUV is proud to support this effort through the IKI-TNFD project, helping businesses and financial institutions to better understand their dependencies and impacts on nature—and to actively contribute to building a nature-compatible global economy.”

Building on a Strong Foundation

The new funding and initiative build upon the UNDP–IFRS Foundation Partnership Framework for Capacity Building established at COP27 in 2022. The partnership was further deepened in 2024 through a Letter of Intent to jointly advance global convergence on sustainability disclosure and foster enabling environments for adoption. These efforts are operationalized through UNDP’s Sustainability Disclosure and Management Hub (SDMH), which supports countries in designing and implementing globally aligned sustainability reporting systems.

With this new focus on nature-related disclosure, the partnership evolves from capacity-building toward technical collaboration, supporting the development of a global baseline for nature-positive finance. It also enhances the ability of developing countries to engage with and implement emerging standards, ensuring that nature-related financial disclosures are inclusive, practical, and globally relevant.

As biodiversity loss and climate change intensify, this timely initiative reinforces the critical role of nature in economic planning and market integrity—helping shift financial systems toward a sustainable, resilient, and inclusive future.