Locating likely impacts and dependencies on nature

I’ve previously described how TNFD’s LEAP approach is valuable in understanding where businesses impact nature, and the dependencies they have on it. Here, I explain how that approach can be readily applied by any company or financial institution — starting with how business operations interface with nature.

Understand your context

Before diving in and trying to gather data from across the organisation, take a breath!

It’s likely that your impacts and dependencies are like other organisations that undertake similar business activities. And, that there is probably published information that can help you get a general sense for the types of impacts and dependencies that you are looking for. You should ask:

• What activities does our business undertake? Using something like ISIC (International Standard Industry Classification) will make your search a lot easier and comprehensive. Note that most businesses do a handful of different things — resist the urge to focus too heavily on one part of your business for now.

• What impacts and dependencies on nature does a business doing similar things typically have? ENCORE is a great starting point, but you can supplement your research using other business’s reports as well as industry briefs.

Let’s take an example, Waitrose, a UK supermarket chain known for its high-quality groceries and upmarket positioning. Waitrose’s activities can be grouped into a handful of areas:

• Retail: Which can be broken into large supermarkets and smaller convenience stores, i.e. ‘Little Waitrose’ (ISIC 4711), online grocery retail (ISIC 4791), and wine and spirit retail (ISIC 4722).

• Food manufacturing: Waitrose produces flour (ISIC 1061), oils (ISIC 1040), and a handful of other home-brand products.

• Farming: Including the growing of wheat and other crops (ISIC 0111), as well as apples (ISIC 0124) at the Leckford Estate, owned by Waitrose.

For each of these business areas you should compile a separate list of impacts and dependencies. Here, let’s look at the breakdown of a couple of impacts that ENCORE suggests for “growing of cereals”: