Nature Risk Assessment

Climate & Nature

RSM recommends that nature risk assessments are conducted using the TNFD framework, and include analysis of both nature related impacts and nature related risks. We can support you through the entire process and ensure that you have a solid overview of your nature related impacts, dependencies, risks, and opporutnities. We will also ensure that you are prepared to report in line with TNFD recommendations.

A nature risk assessment is more complex than a climate risk assessement, since evaluates both a company’s impacts on nature and its nature-related risks and opportunities. The assessment should be conducted following the Taskforce for Nature-related Financial Disclosures (TNFD)’s guidance, which is built on the LEAP methodology.

LEAP is a risk based method for identifying and prioritizing nature related impacts, dependencies, risks and opportunities. The method consists of four phases:

Locate

Identify locations and value-chains where the company has nature interfaces
Decide which locations and activites will be evaluated

Evaluate

Identify IROs and dependencies
Develop scenarios
Output: long list of dependencies, impacts, risks, and opportunities to be assessed

Assess

Assess the materiality of the IROs and dependencies
Output: A prioritized list of material dependcies, impacts, risks and opportunities

Prepare

Identify follow-up measures
Plan for the integration of assessment results in overall risk manadgement
Determine the necessity of a financial sensitivity analysis.

The result of the assessment is a list of impacts, dependencies, risks and opportunities that are material for the company along with a plan for the company’s further work with risk management and reporting.