Amid record-breaking temperatures this summer, the world continues to rally together to witness record-breaking achievements at the Summer Olympics in Paris. Let’s also rally together – both as spectators and active participants – to find solutions that make positive records for a sustainable future.
We full-heartedly believe that “more sustainable” is always possible... and often valuable for your bottom line. For the most important race of our time, it is required that we all cross the finish line.
The Biodiversity Plan (the new name for The Global Biodiversity Framework) can help our bottom line and help make positive record-breaking achievements of our own as they relate to nature’s essential role in the future of our business, and our own existence.
The Biodiversity Plan outlines targets to Protect 30% of Nature's biodiverse ecosystems (terrestrial, inland water, and coastal & marine); Restore 30% of previously degraded natural habitat; and Sustainably Manage the rest by 2030. Organizations can all play a role in reducing threats to biodiversity, as well as helping to implement this Plan by integrating biodiversity into decision-making (Target 14) and assessing, disclosing risks, dependencies and impacts on biodiversity (Target 15 -- follow our EcoAdvisors TNFD Journey Part 1 & 2 to learn more).
To contribute to Target 15, our TNFD Journey Part 3 explores how organizations can identify nature-related risks and opportunities which emerge from facilitating positive impacts on nature and mitigating negative ones.
As a quick recap, the TNFD’s LEAP approach encourages us to:
Scope the LEAP assessment, then
Locate business’ interface with nature,
Evaluate nature-related impacts and dependencies on nature in these locations,
Assess nature-related risks and opportunities which stem from these impacts and dependencies, and how to
Prepare the material findings of our nature-related issues assessment to improve the management of nature within our business, and to align disclosures with the TNFD requirements.
Source: TNFD’s Guidance on the identification and assessment of nature-related issues: The LEAP approach
SCOPING THE LEAP ASSESSMENT
This high-level scan of potential nature-related dependencies, impacts, risks and opportunities helps us develop a hypothesis and ensure alignment with our goals and resourcing.
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For EcoAdvisors, we are unique as we only seek to advise and help our cross-sector clients improve sustainability efforts, including reducing negative nature-related impacts and increasing positive ones. As a services business, we have no material upstream value chain activities (getting raw materials to manufacturers) nor downstream activities (getting products to the end consumer) connected to our work. As such, we currently fall outside of the existing Sector guidance provided by TNFD, yet have some similarities to Financial Institutions guidance. We have therefore taken two parallel approaches to assessing our nature-related issues: (1) consulting sector approach (where we look at the clients we engage and their sectors) and (2) a project sector approach (where we look at the sectors in which projects we support operate) with identifiable nature-related: |
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Working Hypothesis that aligns with EA’s Mission*
IF EcoAdvisors analyzes the nature-related issues of our clients and client projects across various sectors and geographies... THEN we can further understand the potential high-impact sectors and geographies in which we engage (using tools like ENCORE, SASB's Sustainable Industry Classification System (SICS)) AND help our clients align with the TNFD Framework... SO THAT they can reduce negative nature-related impacts, increase positive ones and contribute to the environment-related SDGs and The Biodiversity Plan that help create a healthy planet where all people thrive. |
*It is important to highlight that our TNFD approach is firmly embedded in the mission of our business, and not an external view of our business. |
LOCATE OUR INTERFACE WITH NATURE
The Locate phase offers four guiding questions (L1-L4) which help businesses identify their interfaces with nature across sectors, value chains, and geographies (including ecologically sensitive areas). By the end of this phase, we will have a list of the most material interfaces our projects have with nature across sectors and geographies.
 | L1 EcoAdvisors’ client/project activities fall within the Conservation sector (i.e. advising on or evaluating conservation projects/initiatives, developing sustainability strategies, etc. for cross-sector clients) 2024 Consulting Sectors: Charity Organization/Nonprofit; Philanthropic Foundation; NGOs with a Conservation/Environmental focus. 2024 Project Sectors: Conservation, Sustainable Finance, Information Services, Aquaculture, Water Infrastructure/Utilities and Transportation sectors embedded within Conservation/Environmental projects. As a service provider with consultants working remotely, we have minimal direct operations except communications/IT services and occasional travel for project-related work. For this reason, we have taken two parallel approaches to this assessment: (1) a consulting sector approach, and (2) a project sector approach. L2 Consulting Sector Approach Our consulting efforts and projects serve to increase sustainable impact and do not neatly fit within the LEAP screening. In addition, there is little to no data to assess the level of materiality of our work using the ENCORE tool and GICS databases. Due to the lack of Conservation data, EcoAdvisors is using our internal Impact, Monitoring and Measurement (IMM) Framework to classify our impact influence on location-based projects. Note: for professional services, we cross-referenced similarities with TNFD’s Financial Institutions sector guidance. Project Sector Approach To understand the LEAP assessment from a client perspective, we took a project sector approach that had more available data on material sector dependencies, impacts and rankings. Using the ENCORE tool and database, we created a heatmap (see sample below that groups projects by sector as a percentage of our revenue) to identify these moderate-to-high dependencies and impacts. Note: for businesses in more traditional sectors, refer to TNFD’s sector guidance. L3 & L4 Consulting Sector Approach Nature-related issues intersect with every aspect of conservation work, and most work occurs in sensitive areas. In applying our IMM Framework, our material nature-related impacts are positive (increasing conservation, restoration and sustainable management of land and water, supporting threatened species, and storing carbon), and dependencies are far reaching as all ecosystem services are needed for effective conservation. Project Sector Approach Based on the moderate-to-high sectors screened in L2, we expanded on project activity locations by identifying biomes and ecosystems affected using TNFD’s biome guidance and the Global Map of Ecoregions (L3). These resources, the ENCORE map tool and internal data then helped identify ecologically sensitive areas (L4). The most material sectors of projects include: Sustainable Finance, Information Services, Aquaculture, and Water Infrastructure/Utilities. Associated material nature-related dependencies were stabilization and erosion control, bioremediation, and water resources. Potential material impacts identified include solid waste, water use, and pollution of water and soil. |
EVALUATE DEPENDENCIES & IMPACTS
With the location of our organization’s moderate-to-high impact interfaces with nature identified, we can now Evaluate these nature-related impacts and dependencies using the following guiding questions (E1-E4).
At the end of this phase, the most significant negative nature-related issues associated with our 2024 project portfolio include potential pollution from infrastructure holdings (solid waste, water, soil, air from clients’ buildings). There are several positive nature-related impacts associated with EcoAdvisors’ 2024 project portfolio, as most projects pertain to conservation-based activities which increase the state and health of nature and, by effect, ecosystem services. Many projects are also in the early stages without adequate quantifiable data available.
 | E1 Consulting Sector Approach All client conservation activities were identified, including the environmental assets they influence, the impact pathways by which they do so, and the associated ecosystem services.
Project Sector Approach We assessed all active project activities in order of most to least material to better understand their true nature-related impacts and dependencies. EcoAdvisors’ activities were primarily sustainability strategy support, research reports, evaluations, advice on sustainable funding. We used ENCORE data, supplemented with existing knowledge and the list of impact drivers from TNFD/LEAP Guidance to map out positive and negative impact drivers (such as waste, water use, and land-use change) associated with the sectors identified. E2 Consulting Sector Approach As mentioned, consulting sector approach impacts are primarily positive, with negative ones only emerging unexpectedly. Due to the breadth of conservation projects we support, our dependencies include all ecosystem services as they are the object of restoration, protection, or sustainable management.
Project Sector Approach Identifying our dependencies and impacts on nature required us to look at any external factors influencing each project activity, including ecosystem services (such as soil stabilization and flood mitigation) that we and others depend on and any changes to nature we cause. This included identifying potential impact and dependency pathways, such as how the production of solid waste and pollution from project buildings near sensitive areas can pose threats to surrounding ecosystems, including those being supported.
E3 Consulting Sector Approach Our internal IMM Framework was used to measure nature-related impacts and dependencies through our consulting services. Nature impacts, especially positive ones, experience a time lag between activity implementation and measurable outcomes. Thus, it is important to monitor for potential impacts even after key activities have ended.
Project Sector Approach Measuring the scale and scope of these nature-related dependencies and impacts starts with the highest material issues and works backwards. TNFD offers recommended metrics to use when assessing these impact drivers, changes in ecosystem services, and changes in the state of nature, which should be paired with credible data sources. Where project-specific data was unavailable, ENCORE data was used to err on the side of caution.
E4 If you need to align nature-related impacts with a specific impact materiality lens, additional steps may be needed to meet those requirements. If not, then E3 should be sufficient to move onto the next stages: Assess and Prepare. |
The overall findings from the Locate and Evaluate phases suggest that EcoAdvisors’ most material impacts and dependencies are important considerations but beyond the organization’s direct manageable control. The nature of EcoAdvisors’ work actively seeks to reduce negative environmental outcomes and increase positive outcomes. Nonetheless, it is important to screen and assess projects for unintended side effects.
By aligning with the TNFD framework, organizations can begin to make positive record-breaking achievements of their own, leading to sustainable growth and positive impacts on nature.
NEXT UP: Our TNFD Journey (Part 4), will look at how to Assess our nature-related risks and opportunities, and Prepare to respond and report our findings in our TNFD disclosures. We will also share how we believe this approach helps create long-term value for our business, our clients, and the planet.
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