Project: TNFD Pilot study for a major financial institution Client: Confidential UK financial institution
Location: Global
Objective: To help pilot the Taskforce for Nature-related Financial Disclosures (TNFD) on a range of investment portfolios to build TNFD capacity within the organisation, identify key data gaps, help shape the TNFD and to share the findings with the TNFD community.
Our role: Sustain Value provided technical guidance for this FI, along with The Biodiversity Consultancy and Global Balance, to apply the TNFD and its LEAP framework to a section of investment portfolios and investment projects. To do so, we worked closely with several Asset Managers and a number of Data Providers. Sustain Value provided a lead role on developing methodologies for: i) ‘Scope the Assessment’ to ascertain the most appropriate entry point for the FI into the LEAP; ii) ‘Locate’ to determine how the investments interface with nature; iii) ‘Evaluate’ to identify key impacts and dependencies on nature (e.g. using geo-spatial mapping and LCA methodologies), iv) ‘Assess’ to establish potentially material associated risks and opportunities, including through scenario analysis; and v) ‘Prepare’ to develop a company nature strategy covering governance, targets, metrics and reporting disclosure.
Outcome: The outcome was a series of internal and external reports setting out the approach and data gaps in undertaking TNFD assessments; internal capacity building; and a nature strategy to help the FI become a market leader in this space.