Let's present a case study, related to TNFD, integrating reports on nature and biodiversity and how to publicize this study.
To decide how the organization should respond to material questions related to nature, identified in the LEAP approach, including what to disclose and how to disclose, the identified subjects must follow the following points:
Desired results:
• The definition of nature-related goals and objectives by the organization in light of its activities;
• A discussion within the organization of its governance and risk management processes in light of its assessment related to the nature;
• Agreement on how the organization will respond to nature-related issues, identified in the LEAP approach, including through the definition of effective objectives and goals; e
• The production and publication of a set of aligned TNFD disclosures.
Practical tips from pilot testers:
• Review and revisit previous phases of the LEAP approach if necessary, to ensure you have a fully informed response; e
• Reflect on learning from the LEAP assessment on how to define and describe the scope of disclosures the organization can make.
General principles for response – the mitigation hierarchy
Organizations should adopt the principles of the mitigation hierarchy when determining responses to problems identified in nature-related issues. Using the mitigation hierarchy to guide responses can help reduce negative impacts and related risks for the organization and identify new opportunities for growth and contributions to positive outcomes for nature.
Avoid: Prevent negative impacts from happening in the first place; completely eliminate the negative impact;
They propose to reflect on a way to recover the value of the primary materials used in the manufacture of the product after its disposal.: Minimize negative impacts that cannot be completely eliminated;
Regenerate: Perform designed actions within existing land/ocean/freshwater use boundaries to increase the biophysical function and/or ecological productivity of an ecosystem or its components, often focusing on some specific ecosystem services; e
To restore: Initiate or accelerate the recovery of an ecosystem with regard to its health, integrity and sustainability, focusing on permanent changes to the end state.
To transform: Also include transformative actions, covering the ways in which organizations can contribute to necessary systemic change within and beyond their value chains.
Case study – Value chain mapping and data collection to identify risks and opportunities – Blackmores
Blackmores is a leading Australian natural health products company that manufactures vitamins and nutritional supplements for markets across the Asia-Pacific region. Completed its first work related to risk and opportunity assessment of the nature of a key herbal ingredient that covered the entire value chain from end to end, from raw material cultivation to distribution. This was reinforced by three distinct risks and opportunities of the nature.
- Assessments of Blackmores key facilities in Australia using LEAP guidance:
Blackmores' supply chain covers more than 1.000 ingredients from 36 countries and the company engages with 172 Providers, many of them supplying to various locations. The ingredient selected to pilot the entire risk assessment related to the nature of the value chain was chosen due to its economic value to the business, Blackmores' strong relationship with the supplier and the fact that it has agricultural origins. This was also informed by insights from the Blackmores Climate Resilience Action Plan and a review of scientific literature the Blackmores Institute published on the impacts of climate change on natural medicine..
To support data collection across the supply chain, Blackmores leveraged data sharing with suppliers. They map suppliers by location to report their human rights risk, assess and meet modern slavery reporting requirements and was able to use this data to support the identification of likely nature-related hotspots. The main supplier was engaged to help identify relevant upstream locations, including the growing region and the main materials processing facility neighboring the growing region.
For each location, an assessment of the importance of the ecosystem was carried out based on the proximity of priority locations, places with high biodiversity or conservation importance (for example, key biodiversity areas). A high level of ecosystem integrity assessment has also been completed using these global mapping tools. This step helped flag areas where value chain activities may have dependencies and/or potentially significant impacts.
To gather the data needed for risk assessment, the team developed two questionnaires: one for the supplier and one for your internal manufacturing/distribution team. The questions aimed to help identify potential nature-related dependencies and impacts across the value chain.
Gaskets, The information was used to inform a detailed analysis of material impacts and dependencies for each of the phases of the value chain that may give rise to nature-related risks and opportunities, based on responses to ENCORE and IBAT questionnaires in addition to documentary research.
With the support of an external consultancy company, a Pollination, the LEAP assessment team then layered the data, developing an extensive record of dependencies and impacts related to nature, and their translation into commercially relevant risks and opportunities.
The team produced detailed value chain maps and began developing education and information tools to bring key suppliers along on the journey. Nature-related risks and dependencies were not well understood and supplier involvement throughout this process – including through webinars, development of video content or individual knowledge exchanges – was fundamentally important.
Blackmores then developed a series of insights into risks and opportunities using its climate resilience report in its Financial Sensitivity Model, to determine the impact that various natural hazard scenarios could have on future revenues. Although the evaluation was carried out on one ingredient, the insights were applicable to the broader business.
The findings helped validate Blackmores' initial hypothesis that the greatest concentration of nature-related diseases likely occurs in the physical hazards of the agricultural phase., related to soil quality, climate regulation and flood risk, which have the potential to increase on-farm costs that could be passed on to the Blackmores and disrupt the production of raw materials. It was also clear that both the supplier's refining facilities and Blackmores' own operations have impacts on the nature, leading to transition risks associated with water-related changes, emissions and waste disposal.
Supplier involvement was an important part of risk assessment processes, as it helped to accurately determine and understand the implementation of mitigation activities or practices that may lessen the concern. The ability to leverage existing human rights risk assessment activities and data helped integrate workflows and save costs. Blackmores collects human rights data, nature and climate emissions, creating a holistic view of supplier ESG assessment and scorecard. This process also helped Blackmores identify both opportunities and risks.
Source: Blackmores
Find out more in the original post:
Guidance on the identification and assessment of nature-related issues: the LEAP approach – TNFD
And also on our blog:
Nature and Biodiversity – Reports and Disclosure – TFND – biO3 (bio3consultoria.com.br)
The TNFD Mission and the LEAP Approach – biO3 (bio3consultoria.com.br)