IFRS Foundation Approves 5-Year Operating and Financing Plan for ISSB - ESG Today

Nature & Climate Perspective

**The long-term operational backing of ISSB solidifies standardized accounting frameworks for ecosystem services, nature-related risks, and carbon sinks globally. **

• Accelerates standardized corporate disclosures on LULUCF-related risks and land-use impacts as ISSB aligns closer with nature-related frameworks like TNFD.
• Improves tracking and verification standards for biological carbon sequestration across corporate value chains by harmonizing reporting requirements.
• Bolsters long-term ecological stability by establishing consistent metrics to measure corporate deforestation footprints and habitat degradation under Scope 3 supply chain monitoring.

Market & Policy Outlook

**A fully funded 5-year ISSB trajectory cements IFRS S1 and S2 as the global baseline, driving alignment with ICVCM Core Carbon Principles (CCPs) for corporate decarbonization. **

• Catalyzes regulatory adoption across international jurisdictions, establishing mandatory climate transition plans that interact directly with Article 6.2 and 6.4 accounting frameworks.
• Drives carbon market liquidity toward high-integrity CCP-labeled credits as institutional investors demand audited transparency to prevent greenwashing.
• Tightens corporate compliance pressures for entities aligning with SBTi targets by mandating granular disclosure of Scope 1, Scope 2, and material Scope 3 emissions.