Assessing nature-related risks and opportunities: case studies from Global Canopy’s 2023 TNFD piloting programme

Read case studies from Global Canopy’s TNFD piloting programme featuring AECOM, Grupo SURA, IndusInd Bank, JGP Asset Management, Private Infrastructure Development Group, and Tesco.

Global Canopy has supported six organisations with assessments of their nature-related risks and opportunities as part of a programme to pilot the Taskforce on Nature-related Financial Disclosures (TNFD) recommendations prior to launch in September 2023.

The TNFD has developed a set of recommendations and guidance for organisations to identify, assess, manage, and – where appropriate – disclose, their evolving nature-related dependencies, impacts, risks and opportunities. Its recommendations and guidance help organisations to integrate nature into decision-making, and ultimately support a shift in global financial flows away from nature-negative outcomes, toward nature-positive outcomes.

To better understand the TNFD’s recommendations and to support assessments of their nature-related issues, AECOM, Grupo SURA, IndusInd Bank, JGP Asset Management, Private Infrastructure Development Group, and Tesco participated in a piloting programme run by Global Canopy – an official piloting partner for the TNFD prior to the launch of its Final Recommendations in September 2023 – with support from technical expert consultancies Nature-Based Insights, The Biodiversity Consultancy and Frontierra.

Through the piloting programme, the six organisations undertook assessments of their nature-related issues in line with the TNFD’s voluntary assessment approach, LEAP (Locate, Evaluate, Assess, Prepare). As part of this approach, organisations are expected to: locate their interface with nature; evaluate their dependencies and impacts on nature; assess their nature-related risks and opportunities; and prepare to report on their material nature-related issues. The LEAP approach is a key tool to help companies report in line with the TNFD’s recommendations.

The technical case studies, showcasing each organisation’s experience with piloting the TNFD’s LEAP approach, are available to read on the Global Canopy website. These case studies aim to provide other organisations, which are considering getting started with adopting the TNFD’s recommendations, with practical examples and inspiration.

Case studies

The case studies are available to read below, along with reflections on the piloting experience from each organisation.

AECOM

Global infrastructure consulting firm AECOM undertook a high-level risk screening for a suite of Asia-based infrastructure projects on which it is employed as a consultant.

“The TNFD pilot undertaken in collaboration with Global Canopy has provided an invaluable opportunity to understand how existing environmental assessments, such as Environmental Impact Assessments (EIAs), compare and contrast with applying the TNFD recommendations to infrastructure development projects. We are keen to utilise the findings and learnings from this pilot to encourage the adoption of the TNFD recommendations within projects, given the way that TNFD approaches assessments in a more holistic way, covering aspects of environmental assessment that most EIAs do not consider, such as landscape scale issues, long term risks, and value chain impacts.”

AECOM’s Biodiversity Lead – Singapore, Ash Welch

After completing the pilot with Global Canopy and Nature-Based Insights, AECOM has gone on to become an Early Adopter of the TNFD.

Read the AECOM case study, ‘AECOM TNFD Pilot: Nature risk screening for multiple infrastructure projects across Asia’.

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Grupo SURA

Investment management firm Grupo SURA assessed the exposure to tropical deforestation of its investees’ clients following the LEAP approach.

“This pilot was an incredible learning opportunity for us to anticipate future challenges associated with the implementation of the TNFD recommendations. It allowed us to understand processes needed to identify and assess nature-related risks at investee level, and potential mitigation activities at organisational level, in line with our strategy as an investment manager seeking sustainable profitability, framed in our integration of ESG issues in investing, financing and underwriting strategies.”

Lina Uribe, Sustainability Director, Grupo SURA

Read the Grupo SURA case study, ‘Assessing the nature-related issues of investees’ clients as a Colombian investment management consortium’.

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IndusInd Bank

India-based bank, IndusInd Bank, applied the LEAP approach to assessing its agriculture loans portfolio.

“Joining Global Canopy’s TNFD piloting programme is a testament to our commitment toward making holistic lending decisions that benefit not only the bank but also the ecosystem that the bank serves. From this pilot programme, IndusInd Bank generated an in-depth understanding of how best the bank can factor nature-related externalities to make holistic lending decisions and support the agriculture sector while contributing toward a sustainable future. Thank you to Global Canopy for extending the opportunity to IndusInd Bank to pilot nature-related financial disclosures in the agriculture sector in India.”

Roopa Satish, Head of Sustainable Banking, Portfolio Management & CSR, IndusInd Bank

Read the IndusInd Bank case study, ‘Piloting the TNFD risk and opportunity assessment approach on IndusInd Bank’s agriculture activities-related corporate loans portfolio’.

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JGP Asset Management

JGP Asset Management followed the LEAP approach to assess its exposure to tropical deforestation linked to the agriculture sector in South America.

“JGP’s participation in the TNFD pilot programme with Global Canopy and Frontierra has significantly enhanced our understanding and implementation of the TNFD LEAP approach. This initiative provided valuable insights into assessing and disclosing nature-related risks, allowing us to better integrate biodiversity considerations into our strategic decision-making processes and in the innovation of green products.”

José Pugas, Head of ESG, JGP Asset Management

After undertaking the pilot with Global Canopy and Frontierra, JGP Asset Management has gone on to become an Early Adopter of the TNFD.

Read the JGP Asset Management case study, ‘Assessing nature-related issues of key value chain clients in a Brazilian Asset Manager’s portfolio’.

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Private Infrastructure Development Group (PIDG)

The pilot that PIDG – an infrastructure developer and investor which mobilises private investment in climate resilient, sustainable and inclusive infrastructure throughout Africa and in South and Southeast Asia – undertook focused on a review of its infrastructure portfolio following the LEAP approach.

“Undertaking the TNFD pilot, together with Global Canopy and The Biodiversity Consultancy, has enabled PIDG to identify opportunities to align our existing risk and impact management approach with the TNFD’s LEAP approach. It was a valuable learning experience for us as we seek to better implement a nature lens to our infrastructure investments, and explore our readiness for future disclosure in line with the TNFD’s recommendations.”

PIDG’s Group Lead, Biodiversity and Nature, Cheryl Ng

After completing the pilot with Global Canopy and The Biodiversity Consultancy, PIDG has gone on to become an Early Adopter of the TNFD.

Read the PIDG case study, ‘Experience and reflections from piloting the TNFD’s LEAP approach on an infrastructure development and finance organisation’s portfolio’.

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Tesco

Multinational grocery retailer Tesco focused its TNFD LEAP assessment on the business’ palm oil supply chain.

“We know palm oil production continues to drive deforestation and biodiversity loss. By working with Global Canopy on this pilot, we have been able to analyse the production landscape with the aim of developing a truly nature-friendly palm oil sourcing strategy that looks beyond certification and compliance towards a future where nature and production work hand in hand.”

Tom Hollick, Group Sustainability Manager for Forests at Tesco

Read the Tesco case study, ‘Tesco TNFD Case Study: palm oil traceability and priority locations in Indonesia’.

Read the case study

Tools to support the LEAP approach

There are a number of tools available to support organisations with assessments following the TNFD’s LEAP approach, many of which are available in the TNFD’s Tools Catalogue.

ENCORE

ENCORE is a free, online tool jointly developed by Global Canopy, UNEP-FI and UNEP-WCMC, which provides organisations with data that enables them to identify the nature-related impacts and dependencies that they are exposed to through their business activities, lending, underwriting and investment in high-risk industries and sub-industries. Most of the organisations that participated in the pilot programme – AECOM, Grupo SURA, IndusInd Bank, JPG Asset Management and PIDG – deployed ENCORE to support their LEAP approach assessments. Find out more about ENCORE and how it can support organisations undertaking the TNFD LEAP approach.

Trase

Trase is a data-driven transparency initiative that maps the international trade and financing of key commodities associated with tropical deforestation. Grupo SURA and Tesco deployed Trase’s supply chain mapping approach during their TNFD pilot work.

Find out more about other tools that can support organisations’ assessments as part of the TNFD’s LEAP approach.

Global Canopy is a founding partner of the TNFD, and was an official piloting organisation for the TNFD prior to the launch of the TNFD final recommendations in September 2023. We continue to provide technical expertise to the TNFD, and to build capacity among businesses and financial institutions, preparing them to get started with adopting the TNFD recommendations.