How TBC Approaches Financial Materiality Assessment to Inform Action
Our approach to identifying, measuring and acting on nature-related risk and opportunities (R&O) is detailed by material we developed in partnership with our financial sector clients. It follows the industry-leading approaches of Barclays and CISL (which our team helped define). This approach has been published by TNFD as a complement to their LEAP method and has been used with corporate and financial institutions considered leaders on the nature theme. Logos of those we have worked with on nature-related dependencies, impacts, risks and opportunities can be found below.
Assessing Risk and Opportunities
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Turning insight into strategy
Embedding nature into business
Screening of R&Os for all assets
Understand sector/ location specific R&Os
Understand critical dependencies
Initial Understanding of R&Os
Range of metrics using sector-specific guidance
Inclusion of location-specific consideration
Inclusion of financial materiality consideration
e.g. SBTN high impact commodities, ENCORE
Location-specific data (e.g. Ecoregion, Intactness Index, Cropland, Expansion)
Inclusion of future scenario data (e.g. from academic papers/models)
Risk Screening CSRD Resource Planning
Supply chain / sector risk management Supplier & transaction due diligence and policies Client / supplier questionnaires
Capital allocation decisions Procurement decisions CAPEX Credit risk assessments, allocation decisions and financing terms.
Some of the clients TBC works with:
The assessments are both scientifically robust and commercially pragmatic by: Connecting our deep knowledge about the state of nature with the business and financial worlds; Connecting sustainability teams with commercial teams (e.g. treasury); and Supporting our clients to demonstrate the financial materiality of nature in the most cost-effective way, by navigating toward the most significant R&O.
Our assessment of financial materiality spans commodities, geographies, and types of finance.
Contact the team For more information about our services
Grant Rudgley, Business Director grant.rudgley@thebiodiversityconsultancy.com
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