The LEAP Nature Risk Assessment Approach: L1: Business Footprint
L1: Business Footprint
Guiding Question: Where are our direct assets and operations and our related value chain (upstream and downstream) activities?
Understand your business footprint
Place-based considerations are central for corporates with operations and/or value chain relationships in more than one setting, as well as for financial institutions with assets in companies across several geographies.
Local context is critical to accurately assess nature-related risks and opportunities. Nature impacts and dependencies are localised and therefore organisations need to make different considerations for the geographies their economic activities are located in. Unlike climate change mitigation which can be considered on an aggregate basis, when assessing nature, the organisation’s relationship with nature is defined by where those interactions occur.
Organisations are encouraged to deepen the understanding of their footprint as it relates to place (including offices, sites, and product life-cycles; and in the case of financial institutions, portfolios and investments in individual entities). In doing so, organisations should consider their value chains. This would include both upstream (inclusive of third-party suppliers) and downstream (inclusive of final product use and disposal) considerations. This analysis should be conducted across business units and asset classes (where relevant for financial institutions – see section LEAP approach for financial institutions (LEAP-FI).
Useful Tools and Platforms
The following tools and platforms have been carefully selected by the TNFD to help support you in completing this phase of the LEAP process.
nSTARLive
Our dashboard quantifies the extinction risk embodied in value chains for our clients, applying the same analytical approach used to quantify scope 3 GHG emissions.
Biodiversity impact Assessment (BiA)Live
It helps effectively identify whether the selected location or construction projects are encroaching on protected wildlife habitats or protected areas.
CDPLive
Key disclosure framework for water and forest impacts for companies and cities
BioscopeLive
Determine the impact of a company’s supply chain on biodiversity, visualised on a world map. BioScope was developed for the assessment of supply chains and financial products, and gives you clear, actionable information.
RepRisk, an ESG data science firm, leverages the combination of AI and machine learning with human intelligence to sytematically analyze public information in 23 languages and identify material ESG risks. With daily data updates across 100+ ESG risk factors, RepRisk provides consistent, timely, and actionable data for risk management and ESG integration across a company’s operations, business relationships, and investments.
ExiobaseLive
Multi- regional environmentally- extended input- output databases can be used to estimate environmental impacts based on sector and geography. Can also be used to estimate supply chain sector/ geography breakdown, and relative impacts.
SEDEX RADAR ToolLive
Identify inherent risks within supply chains, including Water and 13 other potential issues, based on geography and sector.
AFiLive
Guidance on transparency within forestry and agricultural commodity supply chains.
ProforestLive
Commodity- specific toolkits that can support organisations to map out forest- related risk in supply chains.