Guidance on the identification and assessment of nature-related issues: The LEAP approach series
The Guidance on the Identification and Assessment of Nature-related Issues: The LEAP Approach series, published by the Taskforce on Nature-related Financial Disclosures (TNFD), provides a structured methodology for organisations and financial institutions to identify, evaluate, manage and report nature-related dependencies, impacts, risks and opportunities.
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OVERVIEW
Purpose
The TNFD LEAP guidance series provides organisations and financial institutions with a structured approach to identifying and assessing nature-related dependencies, impacts, risks and opportunities.
First introduced in September 2023, the guidance supports the integration of nature-related considerations into organisational decision-making, risk management and sustainability reporting. It complements the TNFD’s recommended disclosures but can also be used independently for internal due diligence.
Methodology
The series applies the LEAP methodology, comprising four interconnected phases:
– Locate: Identify where an organisation’s operations, business activities and value chains interact with nature, including ecologically sensitive locations.
– Evaluate: Examine dependencies on ecosystem services and impacts on nature, using relevant environmental indicators and assessment methods.
– Assess: Identify, measure and prioritise nature-related risks and opportunities, including their potential implications for organisational performance.
– Prepare: Develop responses through governance, strategy, resource allocation, target setting, transition planning and reporting.
The methodology draws on established scientific datasets, natural capital assessment approaches and sustainability reporting frameworks, including the Natural Capital Protocol and Science Based Targets Network methodologies.
It is designed to be flexible and iterative, allowing organisations to adapt assessments to their operations, sectors, geographical exposure and available resources.
Application for finance professionals
The guidance supports banks, insurers, ass
t managers and asset owners in examining nature-related dependencies, impacts and risks across lending activities, investment portfolios and other financial exposures.
Finance professionals can use LEAP to inform environmental due diligence, credit risk assessment, investment research, portfolio analysis and stewardship activities.
The methodology also supports the integration of nature-related information into risk management, capital allocation, transition planning and sustainability disclosures.
Development of the series
The original LEAP guidance was published in September 2023, with Version 1.1 issued in October 2023.
Version 2.0, published in October 2026, retains the core LEAP methodology while expanding guidance on nature measurement, risk assessment, financial institution portfolios, transition planning and nature-related opportunities.
