Instos call for global nature disclosure standard

Fifteen financial institutions have called on global sustainability standard-setters to develop a dedicated nature-related disclosure standard, warning that a fragmented approach could undermine investor comparisons and efforts to address biodiversity loss.

The call, led by the Finance for Biodiversity Foundation, follows the International Sustainability Standards Board's (ISSB) launch of a consultation on nature-related disclosures on October 22.

Nature-related dependencies, impacts and risks can affect companies across industries and markets, creating challenges for investors assessing financial resilience, allocating capital and managing portfolios.

The list of signatories include Rabobank, Federated Hermes, Nordea Asset Management, Rathbones and Etica Funds - Responsible Investments.

The signatories said voluntary reporting alone would not deliver the consistency required across jurisdictions, potentially leaving investors navigating different disclosure regimes.

While acknowledging practical considerations behind the ISSB's proposed approach, the group said nature-related risks have location-specific characteristics that may not be adequately captured by existing sustainability and climate-reporting requirements.

A dedicated standard could draw on the Taskforce on Nature-related Financial Disclosures framework, providing a common baseline for companies and investors, the statement said.

The group has called on the ISSB to use its consultation to clarify the pathway towards a formal standard, including how disclosures would remain comparable across markets and support analysis at the company, asset and portfolio levels.

It also urged governments and regulators to support the development of a standard to help implement Target 15 of the Global Biodiversity Framework, which calls for businesses and financial institutions to assess and disclose biodiversity-related risks and impacts.

The Finance for Biodiversity Foundation cited a 2026 global progress review that found limited government implementation of the target, with few countries introducing nature-related assessment and disclosure requirements.

The ISSB consultation closes on 19 February 2027. The foundation is inviting additional financial institutions to endorse the statement until 15 January 2027, as investors prepare their submissions.