Overview
The Alignment stage provided access to tools and resources to support development of a business case for taking action on nature. With leadership buy-in secured, it is time to take the first high-level Action: Assess.
Assessment informs decision-making by helping businesses understand how they interact with nature. This is achieved by measuring the dependencies and impacts on nature, valuing them in business terms, and prioritising actions by identifying the most material issues to address first.
Aligned with the Assess phase of the ACT-D framework(Opens in a new tab/window), this stage provides guidance to assist businesses to make informed, strategic decisions that support both environmental sustainability and business resilience. Whether you're assessing a single project or the business's entire value chain, assessment lays the foundation for meaningful action on nature.
What 'materiality' means
In this context, 'materiality' refers to how significant nature-related impacts and dependencies are for a specific economic activity. When something is material, it’s significant enough to influence decisions. Understanding materiality helps businesses focus on what really matters.
There are several types of materiality(Opens in a new tab/window) to consider:
- Single materiality: Focuses on how nature-related issues affect the business (also referred to as financial materiality).
- Impact materiality: Considers how the business affects nature.
- Double materiality: Combines both perspectives of single and impact materiality.
- Dynamic materiality: Recognises that what is material can change over time.
What an assessment involves
Assessment is the process to identify a business’s interactions with nature. This means understanding where and how a business depends on and impacts nature.
The assessment can be:
- project-specific (e.g. limited to a specific project or activity)
- organisation-wide (e.g. the business's full operations and value chain)
- landscape-scale (e.g. ecosystems outside the business’ operating boundary).
Nature-related dependency is the business’s reliance on environmental assets and ecosystem services. For example:
- agricultural crop production relies on the ecosystem services of pollinators
- the mining and gas industry relies on the stock of minerals and gas
- pharmaceuticals rely on biodiversity and species extent.
Nature-related impacts are the changes, negative or positive, that business has on nature. Consider if the business model creates land and water-use change, releases pollution and waste into the ecosystem, or introduces invasive species.
Planning and scoping an assessment
Start small with your assessment and scale up.
Use frameworks like the Taskforce on Nature-related Financial Disclosures' (TNFD) LEAP approach(Opens in a new tab/window) to:
- Locate the business's interface with nature
- Evaluate dependencies and impacts
- Assess risks and opportunities
- Prepare to respond and disclose.
The TNFD framework recognises that gathering information and undertaking analysis takes time and resources(Opens in a new tab/window). Start with a high-level scan of internal data(Opens in a new tab/window). Look at existing climate and sustainability work. Leverage the systems and reporting already underway for action on nature.
Once you’ve undertaken a high-level scan, consider where the likely material nature-related issues may exist. Locate potential material sources of nature-related dependencies and impacts by considering where the business’s direct and indirect operations interact with nature and any nearby sensitive locations(Opens in a new tab/window). Evaluate if operations occur in areas:
- important for biodiversity(Opens in a new tab/window), this might be areas that are conserved or protected according to local, national, regional and/or international conventions and agreements
- with high ecosystem integrity(Opens in a new tab/window) or areas of rapid ecosystem decline
- with high physical water risk(Opens in a new tab/window), including areas with limited water availability, flooding and poor water quality
- important for ecosystem service provision(Opens in a new tab/window), including ecosystem service benefits to Indigenous Peoples, Local Communities and stakeholders.
Learn more about tools and data sources that can assist businesses undertaking a sensitive location analysis in the Collecting and using data section.
Engagement is a key component of each phase of TNFD’s LEAP approach. TNFD has published guidance on engagement(Opens in a new tab/window) with Indigenous Peoples and Local Communities and provides suggested questions to support engagement. Consider multiple modes of engagement (e.g. pitching, consulting and collaborating) to make nature-related assessments more collective, holistic and robust.
Consider the businesses current capacity, skill and data availability and plan how to undertake an assessment aligning with the organisation’s goals and resources.
Guidance to support an assessment
Start with these resources to support an assessment:
- ACT-D Framework(Opens in a new tab/window): Guides businesses through the tools and frameworks available. This includes resources by TNFD and the Science Based Targets Network (SBTN).
- TNFD LEAP approach(Opens in a new tab/window): Structured guidance on how to identify, assess, manage and disclose nature-related issues.
- SBTN guidance(Opens in a new tab/window): Starts with impact assessment, incorporating materiality screening and value chain assessments.
In addition, sector specific guidance has been developed by:
- TNFD(Opens in a new tab/window)
- Business for Nature(Opens in a new tab/window)
- World Economic Forum(Opens in a new tab/window).
These organisations, and many more, are working together and resources and tools are often interoperable.
Planning tips
- Make use of the business's existing resources and data. SBTN recommends starting with a high-level screening(Opens in a new tab/window) to consider if the business's economic activities are material on pressure categories.
- Consider the sector(Opens in a new tab/window), context(Opens in a new tab/window) and role(Opens in a new tab/window) the business operates in, the scope of the initial assessment, and the data available.
- Consider your potential for moderate to high dependencies and impacts on nature by:
- understanding and analysing the business’s processes, activities and sector(Opens in a new tab/window) to determine what environmental assets and ecosystem services are associated and impacted
- understanding the business’s biomes and ecosystem(Opens in a new tab/window) footprint of its direct or indirect operation and its proximity to ecological sensitive locations(Opens in a new tab/window).
- Get started. Action on nature is not linear, incremental and iterative action is important.
Learn more in the Resource Centre
Guidance on the identification and assessment of nature-related issues: The LEAP approach
Collecting and using data
The increasing focus on nature-related risk management will see the demand for high-quality(Opens in a new tab/window), nature-related, comparable, granular data grow exponentially in the coming years.
Purpose of data
Businesses will need different types of data depending on the purpose of the assessment.
For dependency assessments, businesses need to consider where and how they rely on natural systems. This may include:
- water use and availability (e.g. withdrawal volumes)
- material sourcing (e.g. raw materials used in production, such as timber, cotton, fish, minerals)
- ecosystem services (e.g. pollination, soil fertility, climate regulation).
For impact assessments, businesses need to understand how its activities affect nature. This may include:
- land and/or sea use change (e.g. extent and condition)
- pollution (e.g. air, water, soil)
- waste generation and disposal.
Sources of data
Businesses can obtain data from within the business, such as operational data, including on water usage, waste quantities and disposal methods.
Businesses may use external nature-related data to establish a baseline of the condition and state of nature where they operate. This baseline provides a reference point to assess impacts of the business’s actions over time. It can inform reporting, stakeholder engagement and continuous improvement. Undertaking periodic reassessments of the state of nature where the business operates allows it to measure its impacts and dependencies over time.
Businesses may already have access to:
- quantitative and qualitative data
- spatial data (e.g. maps, satellite imagery).
Many of the tools listed below provide spatial mapping features. These features may be used by businesses to identify priority locations near, or around, its activities and to locate potential material nature-related dependencies and impacts.
It’s important to note that many of these tools were created for purposes broader than supporting a business’s nature risk assessments and reporting. The datasets may not be suitable for local or fine-scale assessments due to varying resolution or modelled nature of the source data. The datasets may be based on models with inherent limitations and assumptions, making them suitable for general guidance rather than precise decision-making.
However, getting started on nature-related assessment is an important step. These tools may provide businesses relevant information, context and understanding to support their assessments.
Global tools
Global tools can help businesses to initially identify their value chain nature impacts and dependencies, considering their industry sector.
TNFD’s Tool Catalogue(Opens in a new tab/window) and the UN Environment Programme World Conservation Monitoring Centre’s (UNEP-WCMC) Nature Tools Compass(Opens in a new tab/window) are two resources that provide information on other available tools.
Global tools that can assist with nature-related assessments
| Name of tool | Description |
| Exploring Natural Capital Opportunities, Risks and Exposure (ENCORE)(Opens in a new tab/window) | ENCORE is a free, online tool that helps businesses explore their exposure to nature-related risk and to take the first steps to understand their dependencies and impacts on nature. |
| Integrated Biodiversity Assessment Tool (IBAT) (Opens in a new tab/window) | IBAT hosts and maintains three key global biodiversity datasets – World Database on Protected and Conserved Areas, IUCN Red List of Threatened Species, and World Database of Key Biodiversity Areas. It provides fee-based data, tools and guidance that help businesses act on biodiversity related risks and opportunities and generates sustainable funding to support biodiversity data sets. |
| WWF Risk Filter Suite(Opens in a new tab/window) | WWF Risk Filter Suite includes a Water Risk Filter and Biodiversity Risk Filter to enable companies and investors to assess and act on nature-related risks to strengthen resilience. |
| Global Forest Watch(Opens in a new tab/window) | Global Forest Watch is an initiative from the World Resources Institute (WRI). It is a free and accessible platform that allows anyone anywhere to access near-real-time information on forest change. |
| Global Environmental Impacts of Consumption (GEIC) Indicator(Opens in a new tab/window) | Commodity Footprints’ Global Environmental Impacts of Consumption (GEIC) Indicator dashboard was developed by the Stockholm Environment Institute York and the Joint Nature Conservation Committee. It can help users track environmental impacts embedded in commodity consumption. |
| Aqueduct(Opens in a new tab/window) | The World Resources Institute’s Aqueduct tool is a suite of 4 tools to identify and evaluate water risk around the world. Aqueduct includes a water risk atlas, to map and analyse current and future water risks across locations. It also provides country rankings, identifies water risks to agriculture and food security, and identifies coastal and riverine flood risks. Aqueduct is made possible with the support of the Aqueduct Alliance. |
Global tools are typically less granular and updated than Australian Government or state and territory government tools and data sets. Where possible, businesses should consider local or regional nature-related datasets to inform assessments and reporting.
Australian Government public data sources
Australian Government agencies provide publicly available data that can support a nature-related assessment.
The tools below can be used to help a business understand how they interact with nature by providing data through spatial layers. Spatial layers are map-based datasets that can be overlaid and analysed together to help users understand potential priority locations and where material nature-related risks and opportunities may exist. This includes locating relevant sensitive areas as described in the Planning and scoping an assessment section above.
Environment Information Australia's Data and Information Portal
Environment Information Australia (EIA)(Opens in a new tab/window) works to improve environment information, data and reporting.
EIA's Data and Information Portal(Opens in a new tab/window) is the Australian Government’s consolidated entry point for national environmental data. The Portal provides data, tools and resources that support decision-making about the environment.
The tools listed in the table below are all features of the Portal. The 3 tools listed below were developed for complementary purposes.
These tools can support identification of sensitive locations but do not, on their own, constitute a sensitive-location assessment. The tools may also include duplication of layer availability.
EIA tools that can assist with nature-related assessment (i.e. sensitive location analysis)
| Name of tool | Description | Using the tool for nature-related assessments |
| Protected Matters Search Tool (PMST)(Opens in a new tab/window) | PMST is a regulatory tool to assist users to identify matters protected under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act). Users can select the ‘Draw’ tool to map out an area and then generate a localised report that provides general guidance on Matters of National Environmental Significance. Users can also select the ‘Layers’ tool to locate relevant spatial layers, including but not limited to:
| Businesses could use the mapping tool to locate sensitive locations, specifically areas:
|
| Environmental Information Viewer (EIV)(Opens in a new tab/window) | The EIV tool(Opens in a new tab/window) is an interactive, web-based tool that overlays spatial environmental data layers on a map of Australia. Users can select the ‘Layers’ tool to locate relevant spatial layers, including but not limited to:
Note: EIV is best used for regional to national scale analysis. | Businesses could use the mapping tool to locate sensitive locations, specifically areas:
EIV provides links to Find Environmental Data (FED) for downloading the underlying data of different layers. This could be useful for businesses building their own analyses for assessments. |
| Environmental-Economics Accounts (EEA) Dashboard (Opens in a new tab/window) | The EEA Dashboard enables users to explore a range of environmental-economic accounts from the Australian Bureau of Statistics. It helps users understand the condition and recent changes to the natural assets of a specific area, including but not limited to:
Users can select a specific geographic region to access data from the accounts available for a relevant area. This includes data for state, NRM region, Local Government Area or Statistical Areas. Note: The EEA Dashboard is best used for regional scale analysis. | Businesses could use the Dashboard to source information on environmental accounts for sensitive locations, specifically areas:
Businesses could also use the Dashboard to inform their consideration of physical water risks. |
Other Australian Government public data sources
There are further Australian Government public data sources that can provide data, tools and resources that support decision-making about the environment.
Table 3: Other Australian Government tools that could assist with nature-related assessments (i.e. sensitive location analysis)
| Name of tool | Description | Using the tool for nature-related assessments |
| Platform for Land and Nature Repair (PLANR) (Opens in a new tab/window) | PLANR is an online geo-spatial application that offers a range of features to support entry into environmental markets. Users can investigate, assess and plan their interface with nature. PLANR enables users to assess their current biodiversity assets. It also projects biodiversity benefits from undertaking management activities. | Businesses could use PLANR to identify potential opportunities for diversification of land-based assets. This includes identifying areas important for biodiversity and potential opportunities for protection or restoration activities. |
| Digital Atlas of Australia(Opens in a new tab/window) | The Digital Atlas of Australia is an online platform that connects curated data on Australia's geography, people, economy and the environment from a range of trusted sources. Maps and user-friendly applications help users layer and visualise information by location to see a national view of:
| Businesses could use the Digital Atlas to identify and understand impacts to sensitive locations, specifically areas:
|
| Australian National Soil Information System (ANSIS)(Opens in a new tab/window) | ANSIS provides access to nationally consistent soil data and information across Australia. It includes data collected from long term studies enabling assessment of changes in soil over time. The ANSIS tool allows users to access and download data from soil samples in their area. | Businesses could use the tool to source information on the following to consider as part of a sensitive location analysis:
This is specifically for areas with high ecosystem integrity |
Australian Climate Service (ACS) Data Explorer(Opens in a new tab/window) Australian Climate Service (ACS) Data Catalogue(Opens in a new tab/window) | The Australian Climate Service Data Explorer and Data Catalogue provide access to Australian climate, hazard, exposure and vulnerability data. The tools help users understand past trends, current conditions and future climate projections in a nationally consistent, science-based way. The Data Explorer mapping tool helps users visualise consistent national information about current and future climate-related risks. The Data Catalogue then allows this data to be downloaded. | Businesses could use these tools to source information on hazards (e.g. extreme rainfall and drought) as well as people and assets exposed and vulnerable, to consider as part of a sensitive location analysis, specifically for areas:
|
| Australian Water Outlook (Opens in a new tab/window) | The Australian Water Outlook tool is operated by the Bureau of Meteorology. It provides interactive data, forecasts, and future projections to help users understand water availability and change over time. | Businesses could use this tool to source information on precipitation, soil moisture and evapotranspiration that could be considered as part of a sensitive location analysis, specifically for areas:
|
| Water Information Dashboard (Opens in a new tab/window) | The Water Information Dashboard is operated by the Bureau of Meteorology. The dashboard provides an interactive, visual summary of Australia’s water resource status. Users can view and compare water storage from publicly owned lakes, reservoirs and weirs. The dashboard shows volumes and prices of water entitlements and allocations being traded in Australia. | Businesses could use this tool to source information on Australia’s water resource status that could be considered as part of a sensitive location analysis, specifically for areas:
|
State and territory data and information sources
State and territory portals offer localised environmental data and information. Datasets will have different use cases and can be applied to identifying material nature risks, such as water consumption and land use change. The Commonwealth datasets listed above were developed to complement state and territory datasets.
Click the relevant accordion below to understand some of the available datasets and tools within each state or territory.
Real-world examples of businesses undertaking nature assessments
Nature Positive Matters’ case studies provide examples of Australian businesses undertaking the assessment process as part of their sustainability planning.
Setting the benchmark in environmental stewardship and sustainability reporting
GPT 2024 Climate and Nature Disclosure Statement
Takeaways
Assess nature dependencies and impacts
- Assessment is the process to identify how a business depends on and impacts nature.
- Assessments can be project-specific, landscape-scale, or organisation-wide.
- Use frameworks like TNFD LEAP to guide assessment.
Start with internal insights and prioritise material issues
- Start with a high-level scan of internal resources.
- Focus on addressing the most material nature-related issues.
Establish a baseline and track progress
- Establish a baseline to track changes and support reporting.
- Begin now – progress is iterative.
Next
Explore the Knowledge Hub
Access tools, resources and insights that support business to take nature-related action.
Case Studies
Insights
