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How to screen for potential impacts and dependencies on nature?
It is important to measure, value and prioritize your impacts and dependencies on nature to ensure you are acting on the most material ones. However, you don’t need to have granular information up front in order to inform first actions on nature and build up assessment over time.
ENCORE tool
An excellent starting point is the ENCORE tool, which helps to break down the complexity of nature and identifies potential impacts and dependencies on nature for different sectors and sub-sectors.
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What frameworks can I use to develop a robust understanding of our company’s relationship with nature?
LEAP approach
The LEAP approach, developed by the Task Force on Nature related Financial Disclosures (TNFD), provides a structured, optional framework to understanding nature-related dependencies and impacts, especially in complex value chains. LEAP stands for L) locate your interface with nature E) evaluate your dependencies and impacts, A) assess your risks and opportunities and P) prepare to respond and report.
TNFD has downloadable capacity building resources, called to support you in the implementation of TNFD disclosure recommendations and where you can deep dive into the LEAP approach.
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Science-based Targets Network (SBTN)
Taking a similar approach, the Science-based Targets Network (SBTN) had developed a aligned with the TNFD’s approach, with more scientific rigour in order to help companies understand how much action is enough in the right places, how much pressure reduction and impact improvement is needed, plus an optional validation service.
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How have other companies assessed their nature-related issues?
Here are inspiring and practical, in-depth examples of businesses that have applied the ACT-D framework – the High-level business Actions on Nature to Assess, Commit, Transform and Disclose, with a focus on the assess phase and key lessons for each sector:
- For the energy sector from Iberdrola, Equinor and CLP.
- For the Agri-food system from Nutrien and Olam Agri
- For the built environment from Sacyr, Holcim and AECOM
- To illustrate the catalyst role of central banks, from the Dutch National Bank.
How natural capital assessments can inform decision-making
Natural Capital
Natural capital is the stock of renewable and non-renewable natural resources that combine to yield a flow of benefits to people. Natural capital supports the mindset shifts as nature is framed as an asset that provides flows. This way, nature is better integrated into business language.
You can discover more through Capitals Coalition.
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Entry points to natural capital
This Entry Points to Natural Capital Thinking infographic offers a clear and compelling overview of how natural capital connects with existing business processes and on the other hand, how does it connect with the other sustainability concepts that you might be already familiar with (developed as part of another EU-Horizon project).
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By using natural capital as an additional lens, businesses can uncover blind spots, strengthen their sustainability strategies, and better align financial, strategic, and environmental performance. This resource is a valuable guide to integrating natural capital thinking across departments, according to the most relevant entry points for the audience, with a clear description of each concept and rich link to external resources. (Note: the document was published in 2020. As this is a fast-moving field, the information on accounting standards is outdated. The International Financial Reporting Standards (IFRS) have been developed by the IFRS Foundation and the International Accounting Standards Board (IASB). Since 2021, it also includes the International Sustainability Standards Board (ISSB).)
Valuing nature and people to inform business decision-making
You prefer learning at your own pace? Explore the Valuing Nature and People to Inform Business Decision-Making online course on Coursera. This interactive, self-paced course offers over 20 hours of content, featuring business case studies, instructor videos, quizzes, and discussion prompts—all designed to help you learn in a fun and engaging way. It is free and you can start learning whenever suits you best.
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Using accounting rigour in nature assessments
Traditional accounting overlooks the value of ecosystem services (e.g., water purification, pollination, flood protection), leading to underinvestment in nature. Natural Capital Accounting (NCA) and Corporate Natural Capital Accounting (CNCA) are emerging frameworks that aim to integrate nature into financial decision-making.
Corporate biodiversity measurement and valuation
See here for a The work developed by UNEP-WCMC, Capitals Coalition, Arcadis, ICF and WCMC Europe as part of the Align project (Aligning Accounting Approaches for Nature) provides clear recommendations: using double materiality to prioritise efforts, point to clear indicators of ecosystem extent and conditions for impacts and dependencies assessment, need for spatial precision, disclosing values assessed and values omitted among others.
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Standardised natural capital management accounting
Transparent is the worldwide first standardized guidance for Natural Capital Management Accounting developed as part of EU LIFE project by Value Balancing Alliance, the Capitals Coalition, the World Business Council for Sustainable Development. The methodology paves the way for the development of Environmental Profit and Loss Accounts. It covers specific accounting modules by impact drivers, specifically GHG emission, non-GHG air emissions, water consumption, water pollution, land use and solid waste.
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Natural Capital Protocol
The basis for many of the frameworks and guidance is the Natural Capital Protocol, published in 2016.
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