Measure a company’s relationship with nature as a connected assessment of its impacts, dependencies, risks, opportunities and responses—not as one universal score. Map where operations and value chains meet ecosystems, identify the pressures the business creates and the ecosystem services it relies on, then connect those findings to business consequences, targets and decisions.
The Taskforce on Nature-related Financial Disclosures (TNFD) LEAP approach provides a practical structure. It helps an organisation locate interfaces with nature, evaluate material issues, assess risks and opportunities, and prepare actions and disclosures while preserving the location and uncertainty context that an aggregate number would hide.
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What you are actually measuring
A useful assessment separates two directions of the relationship before connecting them.
Impacts
Impacts are pressures the company causes or contributes to. Examples include land-use change, greenhouse-gas emissions that alter climate conditions, pollution, waste, water abstraction and disturbance of species or habitats. An impact measure should describe the pressure, where it occurs, which ecosystem is affected and the pathway by which the pressure changes nature.
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Dependencies
Dependencies are ecosystem services or ecological conditions on which the company relies. A beverage producer may depend on reliable water quantity and quality; an agricultural business may depend on pollination, soil fertility and water regulation; a coastal facility may depend on natural flood protection. Record a dependency only when the activity actually relies on that service. Listing every possible service creates noise rather than insight.
Risks, opportunities and responses
Nature-related risks are possible financial, operational, legal, market or reputational consequences of impacts, dependencies or changing ecological conditions. Opportunities can arise from avoiding harm, restoring ecosystems, improving resource efficiency, developing products that reduce pressure or gaining resilience in a changing market. Responses are the actions, controls, investments and policies used to manage those issues. A response measure—such as money spent on restoration—is not evidence by itself that ecological condition improved.
These elements form a causal chain: an activity creates or depends on a condition in a particular place; that condition affects an ecosystem service; the service or change creates a business consequence; and the company chooses a response. Measuring each link makes the result usable for decisions.
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1Clear out junk files and repair common Windows errors2Fix the driver behind crashes, sound loss and screen glitches3Repair Windows errors before they cause bigger problemsUse TNFD’s LEAP approach as the organising structure
LEAP is a process rather than a single calculator. Its stages are commonly described as Locate, Evaluate, Assess and Prepare. TNFD published LEAP v1.0 in September 2023 and reports that LEAP v2.0 was published in October 2026 as the first upgrade of the assessment approach. The current material also includes guidance for value chains, sectors, biomes, scenario analysis, and engagement with Indigenous Peoples and Local Communities.
Use the latest TNFD assessment and sector guidance for a live project. Treat LEAP as a decision framework: it tells you what questions to answer and how to document them, but it does not remove the need for local ecological data or professional judgement.
Step 1: Set the organisational boundary before collecting data
Write a scope statement that a reviewer can reproduce. It should identify:
- the reporting entity, subsidiaries and joint ventures included;
- the reporting period and any restatement policy;
- operational sites, leased assets and controlled facilities;
- upstream suppliers, raw-material origins, logistics and processing;
- downstream activities, product use and end-of-life where material;
- the geographies, ecosystems and business units screened; and
- known data gaps, exclusions and estimation rules.
Keep the nature assessment boundary consistent with financial and sustainability reporting where practical, but document differences. A company may have precise data for owned sites and only modelled information for suppliers. That is acceptable if the distinction, method and uncertainty are visible. Local reporting obligations still apply separately; a voluntary framework guide is not a jurisdiction-specific compliance checklist.
Step 2: Locate every material interface with nature
Plot owned and controlled sites, major projects and material value-chain activities against ecosystems and places. A location screen is a prioritisation step, not proof that a measurable impact has occurred. It indicates where detailed investigation is most valuable.
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Build a location register
| Field | What to record | Why it matters |
|---|---|---|
| Activity and asset | Site, facility, mine, farm, warehouse, supplier, product or project | Connects the ecological issue to an accountable business activity |
| Geographic resolution | Coordinates or site boundary where available; otherwise the finest defensible administrative or sourcing area | Ecosystem condition and service availability vary by place |
| Ecosystem and biome | River basin, forest, grassland, wetland, marine area or other relevant system | Allows pressure and dependency indicators to be interpreted ecologically |
| Value-chain position | Direct operation, tier-one supplier, upstream origin, downstream use or disposal | Shows where the company has control, influence or limited visibility |
| Screening result | Potentially significant dependency, impact, risk or opportunity, with the reason | Creates a documented prioritisation decision rather than an unexplained shortlist |
Prioritise locations with potentially high pressure, high dependency, sensitive or declining ecosystems, legally protected areas, scarce services, or significant business exposure. Use local studies, permits, ecological monitoring and supplier evidence to refine the screen. Do not present a global hotspot overlay as a measured local outcome.
Step 3: Identify impact drivers and dependencies
For each priority activity, list the pressure it creates and the service or ecological condition it needs. The five broad drivers of nature change—land and sea-use change, direct exploitation of organisms, climate change, pollution and invasive alien species—provide a starting taxonomy. Sector guidance can add specific pollutants, waste streams or extraction issues.
| Issue type | Illustrative business question | Possible evidence |
|---|---|---|
| Land and sea-use change | Does a new facility, farm, road or supplier conversion alter habitat or connectivity? | Area converted, habitat maps, restoration status, spatial change analysis |
| Direct exploitation | Are water, timber, fish, minerals or biological materials extracted at a sustainable rate? | Abstraction volumes, harvest records, permits, stock or replenishment information |
| Climate change | Could emissions or warming change the ecosystem conditions on which the activity relies? | Emissions data, climate projections, exposure and resilience analysis |
| Pollution and waste | What substances, nutrients, plastics, noise or heat enter the environment? | Mass by substance, concentration, discharge point, treatment performance and receiving ecosystem |
| Invasive alien species | Could transport, aquaculture, horticulture or trade introduce or spread non-native species? | Pathway controls, inspection records, incident logs and monitoring |
| Ecosystem-service dependency | Which service must function for production, safety or revenue to continue? | Water-regulation studies, pollination reliance, flood protection, soil or climate-service analysis |
Map direct and indirect pathways. For example, a supplier’s land conversion may be outside the company’s owned boundary but still material through purchased commodities. Conversely, a company may have a high water dependency at one site and little or none at another. Avoid assigning a dependency to an entire sector without checking the actual process and location.
Step 4: Choose indicators that answer a specific question
Start with the decision you need to support, then choose the smallest set of indicators that can answer it. TNFD’s metric architecture groups measures into four categories.
| Metric category | Purpose | Example use |
|---|---|---|
| Location prioritisation | Identify sites and value-chain areas requiring deeper analysis | Screening for ecosystem sensitivity, dependency or impact potential |
| Dependency and impact | Describe pressures, dependencies and their scale or severity | Water withdrawal at a stressed basin, land-use change or pollutant load |
| Risk and opportunity | Express business exposure and potential value creation | Revenue at risk, disruption scenarios, financing terms or opportunity pipeline |
| Response | Track management actions and implementation | Coverage of controls, restoration actions, supplier engagement or governance changes |
Within that architecture, TNFD distinguishes core global indicators, additional indicators, sector metrics and internal assessment metrics. Core metrics support broader comparability; sector metrics add business-model specificity; internal assessment metrics can guide management without automatically being required for external disclosure.
TNFD’s current metrics page describes 14 core global indicators, including nine core global dependency-and-impact indicators and indicators covering nature-related risks and opportunities. Metric guidance can change, so confirm the current list and definitions when preparing a report. TNFD also reports that a 2022 survey found more than 3,000 unique nature-related indicators and metrics, with different definitions for similar indicators, inconsistent treatment and uneven topic coverage. That historical figure explains why selecting and defining measures matters; it is not a current count of all available metrics.
Document every metric
For each measure, maintain a definition sheet containing:
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- the question and decision the metric supports;
- unit, calculation, numerator, denominator and conversion factors;
- organisational, geographic, temporal and value-chain boundaries;
- data source, owner, collection frequency and lineage;
- direct measurement, model, proxy or estimate status;
- method version, assumptions and uncertainty range;
- location and ecosystem context; and
- quality checks, assurance status and known limitations.
Normalised figures can help compare facilities, but always retain the absolute quantity. A pressure per tonne of product may fall while total pressure rises because production expanded.
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Step 5: Gather data without hiding uncertainty
Use a tiered evidence strategy
- Direct operational data: Meter water withdrawals, record discharges, map land boundaries and reconcile purchasing or production systems.
- Supplier and partner data: Request site locations, origin information, permits, monitoring results and calculation methods. Record the supplier tier and verification status.
- Remote sensing and geospatial datasets: Use them to locate land-cover change, habitat condition or water stress, then validate important findings locally.
- Models and proxies: Apply sector or regional factors when direct measurement is impossible. Label the proxy, its geographic fit and its uncertainty.
- Expert and community knowledge: Use ecological experts and affected Indigenous Peoples and Local Communities where appropriate, with consent and clear treatment of sensitive information.
Do not convert a screening score into a false measurement. A model can identify a high-priority watershed, but it cannot establish the exact ecological effect of a facility without suitable local evidence. Preserve data versions so year-on-year changes reflect real conditions rather than a silent change in the model.
Step 6: Interpret pressures alongside ecosystem condition
A pressure number alone rarely tells a decision-maker what changed in nature. Pair it, where possible, with the receiving ecosystem, service provision, pathway, timing and relevant condition evidence.
Use a causal record
- Activity: what the company or supplier did.
- Pressure: the physical or chemical driver, such as hectares converted or kilograms discharged.
- Pathway: how the pressure reaches an ecosystem, directly or indirectly.
- Condition or service: what changed or may change, such as habitat quality, groundwater recharge or pollination.
- Business consequence: the operational, financial, legal or strategic effect.
Compare with ecological thresholds only when credible, local or ecosystem-specific evidence exists. An aggregate company total should not be presented as an ecological outcome. If condition data are unavailable, say that the pressure has been quantified but the resulting ecological change has not been established.
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Repair common Windows errors and clear accumulated junk for a smoother, more stable PC - no reinstall needed.Free scan · no reinstallStep 7: Translate findings into risks and opportunities
For each material dependency or impact, assess exposure, likelihood, severity, time horizon and ability to influence the outcome. Consider transition as well as physical risk: regulation, litigation, changing procurement standards, customer expectations, financing conditions and loss of market access may matter even before an ecosystem service visibly declines.
Questions for a risk register
- Which site, product, supplier or revenue stream is exposed?
- Which dependency or impact creates the exposure?
- What is the pathway from ecological change to business consequence?
- What is the expected timing and plausible range of outcomes?
- What controls already exist, and how effective are they?
- What action, owner, budget and trigger would reduce the exposure?
Record opportunities with the same discipline. A restoration project, lower-impact input, circular process or supplier transition should identify the ecological objective, commercial rationale, implementation risk and measurement method.
Step 8: Set targets and track responses separately from outcomes
TNFD’s LEAP v1.1 guidance describes a target as a specific, quantitative and time-bound objective, preferably with a defined means of measurement. Align nature targets with the Kunming-Montreal Global Biodiversity Framework where relevant to the company’s geography and activities.
What a defensible target contains
- a baseline year and clearly defined boundary;
- a quantitative result, not only an intention or policy;
- a deadline and interim milestones;
- the locations, ecosystems, activities and value-chain tiers covered;
- the indicator, method, data source and uncertainty treatment;
- an accountable executive or business owner; and
- the action plan, funding and escalation route.
Examples of target forms include reducing a specified pressure at identified sites, eliminating a defined pollutant from a material pathway, maintaining a dependency within a basin’s credible availability limits, or restoring and maintaining a defined ecosystem area with an outcome indicator. Do not claim “nature positive” from an unverified activity count or from expenditure alone.
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Track response metrics—training, supplier coverage, capital allocation, restoration progress and policy implementation—alongside dependency, impact and condition metrics. This shows whether the company acted and whether nature changed, without confusing the two.
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Step 9: Report results people can reproduce
A useful disclosure explains scope, locations, material issues, metrics, methods, changes from the prior period and limitations. For every material issue that cannot yet be measured, explain why, which interim proxy is used, and how the organisation plans to close the gap. TNFD allows core disclosure metrics to be explained in this way when measurement is not yet possible.
Minimum reporting package
- scope and boundary statement;
- location-prioritisation method and priority map or register;
- impact-driver and dependency inventory;
- metric definitions, units, sources and estimates;
- risk and opportunity assessment;
- targets, responses, owners and progress;
- data gaps, uncertainty and changes in method; and
- governance, review and assurance arrangements.
Explain whether a figure is measured, estimated, modelled or extrapolated. If a metric changed because the boundary or method changed, provide a like-for-like restatement or a clear bridge. Commercial sensitivity may limit site or supplier detail, but it should not erase the method, scale, geography or reason for withholding information.
How to compare measurement approaches or tools
There is no universally best database, calculator or indicator set. Compare alternatives against the question your organisation needs to answer.
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|---|---|
| Geographic resolution | Can it distinguish sites, watersheds, habitats or sourcing areas rather than only national averages? |
| Value-chain coverage | Does it cover direct operations and relevant upstream or downstream activities? |
| Dependencies and impacts | Does it address both what the company affects and what it relies on? |
| Sector relevance | Are the indicators meaningful for the company’s processes and materials? |
| Ecological connection | Can pressures be related to ecosystem condition or service provision? |
| Data provenance | Are sources, model versions, assumptions and uncertainty visible? |
| Repeatability | Can the same method be run next year without unexplained changes? |
| Disclosure compatibility | Can outputs support TNFD, sector guidance and applicable reporting requirements? |
| Cost and assurance readiness | What collection, verification and specialist expertise are required? |
Specialist geospatial assessment, nature-data services and metrics assurance can help fill capability gaps, but the company remains responsible for its boundaries, assumptions and decisions. Select support based on location coverage, sector fit and audit trail rather than a large indicator count.
Common mistakes and how to correct them
Reducing nature to one score
Problem: A single composite number hides different ecosystems, services and pressures.
Correction: Keep separate impact, dependency, risk, opportunity and response measures, linked through a location-specific causal record.
Counting activity instead of outcome
Problem: Number of projects, policies or dollars spent is reported as proof that nature improved.
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Ignoring location
Problem: A company-wide water or land figure treats a scarce basin and an abundant one as equivalent.
Correction: Attach quantities to coordinates or the finest defensible sourcing area and describe ecosystem context.
Overclaiming model precision
Problem: A screening layer or supplier average is presented as a measured local impact.
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Correction: Label the result as screening, estimate or proxy; state its uncertainty and the plan for validation.
Leaving dependencies out
Problem: The assessment lists pollution and land change but not the services production requires.
Correction: Interview process owners and test material dependencies such as water regulation, pollination, soil fertility or flood protection at the relevant sites.
Changing methods without a bridge
Problem: Year-on-year movement reflects a new dataset or boundary rather than nature or performance.
Correction: Version methods, preserve prior data and disclose restatements or breaks in the time series.
A practical implementation sequence
- Approve the scope, governance owner, reporting period and value-chain boundary.
- Create the location register and screen for potentially material interfaces.
- Build the impact-driver and dependency inventory for priority activities.
- Select a documented set of location, dependency-and-impact, risk-and-opportunity and response indicators.
- Collect direct data first, then use disclosed models and proxies for remaining gaps.
- Connect pressures to pathways, ecosystem condition or services and business consequences.
- Rank risks and opportunities and assign actions, owners, budgets and decision triggers.
- Set quantitative, time-bound targets with baselines and measurement methods.
- Review calculations, uncertainty and sensitive information; obtain assurance where appropriate.
- Report results, limitations, method changes and progress, then repeat the assessment on a defined cycle.
On 13 October 2026, TNFD, the Science Based Targets Network and the Nature Positive Initiative announced aligned updates intended to support more consistent nature assessment, target-setting and corporate reporting. SBTN’s 2026 resources include biodiversity and land-impact guidance. Use those resources for target and indicator development while keeping their purpose distinct from TNFD’s assessment and disclosure structure.
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