A5: Opportunity identification and assessment

Guiding Question: What nature-related opportunities does this assessment identify for our business?

Inform a range of corporate and investment decision making activities beyond disclosure

Organisations that appropriately respond to their nature-related dependencies and impacts across short, medium- and long-term time horizons, as well as shifting demand-side factors such as consumer preferences and regulation, can inform not just corporate and investor risk management, but also growth strategy. Specifically, they can pursue commercially attractive nature-based opportunities that contribute to nature positive outcomes. The LEAP approach can help to inform a range of corporate and investment decision-making activities beyond disclosure: namely strategy, growth and capital allocation decisions.

Nature-related opportunities

The TNFD defines nature-related opportunities as below.

Definition

Nature-related opportunities

Activities that create positive outcomes for organisations and nature by avoiding or reducing impact on nature, or contributing to its restoration. Nature-related opportunities can occur i) when organisations mitigate the risk of natural capital and ecosystem services loss and ii) through strategic transformation of business models, products, services and investments that actively work to halt or reverse the loss of nature, including by implementation of nature-based solutions (or support for them through financing or insurance).

TNFD (2021) Nature in Scope

Definition

Nature-based solutions

Actions to protect, sustainably manage and restore natural or modified ecosystems that address societal challenges effectively and adaptively, simultaneously providing human well-being and biodiversity benefits.

IUCN (2020) The IUCN Global Standard for Nature-based Solutions

Definition

Natural-climate solutions

A subset of nature-based solutions, natural-climate solutions include conservation, restoration, and improved land and sea management that increase carbon storage and/or avoid greenhouse gas emissions, enhance resilience and assist climate adaptation across global forests, wetlands, mangroves, grasslands, and agricultural lands and other habitats.

Girardin, C et al (2021) Nature based solutions can help cool the planet — if we act now; Griscom, B et al (2017) Natural climate solutions

Nature-related opportunities will vary according to the region, market and industry in which an organisation operates.

Both risk mitigation and strategic transformation will create potential opportunities for resource efficiency, products/services and markets, financial incentives, resilience and an enhanced reputation for a business or sector, which will in turn deliver opportunities for financial institutions.

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