Investors and other stakeholders need to understand how an organisation’s nature-related risks are identified, assessed and managed and whether those processes are integrated into existing risk management processes. Such information supports users of nature-related financial disclosures in evaluating the organisation’s overall risk profile and risk management activities.

Risk & Impact Management

Disclose how the organisation identifies, assesses and manages nature-related dependencies, impacts, risks and opportunities.

Recommended Disclosure a)

Guidance for All Sectors

Organisations should describe their risk management processes for identifying and assessing nature-related risks. Important aspects of this description are:

  • how organisations determine the relative significance of nature-related risks in relation to other risks; and
  • how a location-specific approach has been used, taking into account the differences in risks and opportunities across locations.

Organisations should describe whether they consider existing and emerging regulatory requirements related to nature loss (e.g. restrictions on water use / land use), as well as other relevant factors considered.

Organisations should also consider disclosing the following:

  • processes for assessing the potential size and scope of identified nature-related risks; and
  • definitions of risk terminology used or references to existing risk classification frameworks used.

Describe the organisation’s processes for identifying and assessing nature-related dependencies, impacts, risks and opportunities.

Recommended Disclosure b)

Guidance for All Sectors

Organisations should describe their processes for managing nature-related risks, including how they make decisions to avoid, minimize, mitigate, transfer, accept or control those risks. In addition, organisations should describe their processes for prioritising nature-related risks, including how materiality determinations are made within their organisations and how priority locations are identified.

In describing their processes for managing nature-related risks, organisations should address the risks included in Annex 4 as appropriate.

Additional Content

Describe the organisation’s processes for managing nature-related dependencies, impacts, risks and opportunities.

Recommended Disclosure c)

Guidance for All Sectors

Organisations should describe how their processes for identifying, assessing and managing nature-related risks are integrated into their overall risk management.

Describe how processes for identifying, assessing, and managing nature-related risks are integrated into the organisation’s overall risk management.

Recommended Disclosure d)

Describe the organisation’s approach to locate the sources of inputs used to create value that may generate nature-related dependencies, impacts, risks and opportunities.

Recommended Disclosure e)

Describe how stakeholders, including rightsholders, are engaged by the organisation in its assessment and response to naturerelated dependencies, impacts, risks and opportunities.

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