Introduction

The LEAP (Locate, Evaluate, Assess, Prepare) approach provides a framework for identifying and assessing nature-related dependencies, impacts, risks, and opportunities. It integrates existing frameworks, such as the Natural Capital Protocol and Science-Based Targets for Nature, while addressing systemic interconnections between ecosystems, organisations, and financial markets. Over 240 organisations globally have pilot-tested this approach.

Foundations for understanding nature and nature-related issues

Nature consists of four realms: land, ocean, freshwater, and atmosphere, interconnected by biodiversity that underpins ecosystem productivity and resilience. Indigenous Peoples manage 80% of the world’s biodiversity, with a 30% slower rate of decline compared to non-Indigenous lands, emphasising the need for their engagement in assessments. Organisations are encouraged to consider planetary boundaries and ecological tipping points, as exceeding these can have irreversible consequences on ecosystems and their services.

Scoping a LEAP assessment

Scoping defines the parameters for an assessment, aligning teams and identifying priority nature-related issues. The iterative nature of the process allows for adjustments as new dependencies or impacts are identified. Outputs include a working hypothesis and agreement on resources. Examples such as Blackmores’ integration of supplier data demonstrate how existing frameworks like human rights risk assessments can support nature-related assessments.

Locating the organisation’s interface with nature

The Locate phase prioritises sectors, value chains, and geographic locations with significant dependencies or impacts on nature. Tools like the World Database on Protected Areas, ENCORE, and IBAT assist in identifying ecologically sensitive locations, including biodiversity hotspots and high-integrity ecosystems. Storebrand’s deforestation risk analysis and Nestlé’s plantation-level supply chain mapping highlight best practices in location-specific assessments. Organisations are encouraged to pay special attention to regions at risk of tipping points.

Evaluating nature-related dependencies and impacts

Dependencies on ecosystem services, such as water provision and pollination, and impacts like deforestation are assessed for materiality. Dependency and impact pathways connect business activities to ecosystem services, demonstrating the complex interplay between actions and nature. External factors such as regional climate patterns and competing land uses are integral to comprehensive assessments. Organisations are advised to measure and prioritise dependencies and impacts using TNFD’s metrics, which include biodiversity loss, pollution, and resource depletion.

Assessing nature-related risks and opportunities

Risks are categorised as physical (e.g., ecosystem degradation), transition (e.g., regulatory changes), and systemic risks (e.g., cascading ecosystem failures). Systemic risks, in particular, underscore the interconnected nature of ecosystems and financial systems, where tipping points can cause widespread disruptions. Opportunities for businesses include ecosystem restoration, circular economy practices, and adopting science-based targets. Financial implications of risks and opportunities are directly linked to revenues, costs, and asset valuations, providing a robust basis for strategic decision-making.

Preparing to respond and report

Organisations develop response strategies aligned with the TNFD’s AR3T framework (Avoid, Reduce, Regenerate, Restore, Transform), prioritising mitigation and ecosystem restoration. Tools like scenario analysis, impact valuation, and metrics support effective response planning. Collaborative practices, such as data-sharing with suppliers and integrating existing due diligence activities, are highlighted as cost-effective methods for implementation. Reporting frameworks align with TNFD, ISSB, and GRI standards, addressing stakeholder expectations.

Tools and resources

Organisations are encouraged to leverage tools like heatmaps, ENCORE, and the Integrated Biodiversity Assessment Tool for prioritising efforts. Metrics for each dependency and impact category, including pollution, resource use, and biodiversity loss, ensure standardised assessments. While initial assessments may rely on aggregate data, the TNFD advocates for iterative improvements, refining granularity and accuracy over time.