Nature Positive Role of the Automotive Sector

4.2 A deeper look at metrics to support decision-making Companies need to track and publicly report on their actions against relevant metrics to strengthen their credibility and ensure they deliver an effective transition. TNFD’s LEAP approach TNFD offers sector-specific and sector-agnostic guidance on metrics, which should be the first port of call. A good place to start within TNFD’s resources is the Guidance for corporates on science-based targets for nature, published jointly by TNFD and SBTN.249 TNFD differentiates between assessment metrics and disclosure metrics along the four phases of the LEAP approach250 (see Figure 9): –Locate interface with nature –Evaluate dependencies and impacts –Assess material risks and opportunities –Prepare to respond and report Types of metrics in TNFD’s LEAP approach FIGURE 9 Assessment metrics Types of metricsDisclosure metrics Locate interface with natureEvaluate dependencies and impacts on natureAssess material risks and opportuntiesPrepare to respond and reportLEAP approachLocation prioritization metrics − Ecosystem integrity − Biodiversity importance − Physical water risks − Other corporate dataImpact and dependency metrics − Impact drivers − State of nature − Ecosystem services/ dependenciesRisk and opportunity metrics − Physical risks − Transition risks − Systemic risks − Nature-related opportunitiesResponse metrics − Governance − Strategy − Management actionsDisclosure metrics − Core global metrics − Core sector metrics − Additional metrics Source: Adapted from Taskforce on Nature-related Financial Disclosures (TNFD). (2024). Recommendations. Guidance on nature measurability is fast developing: –The Capital Coalition’s Align Project has issued a suite of publications on measuring and valuing biodiversity.251 –CSRD, Global Reporting Initiative (GRI) and TNFD’s disclosures are organized around a series of metrics that can be used to anchor company assessments and support disclosure. These should be complemented with what the TNFD LEAP approach calls “response metrics” – the internal reporting on an organization’s actions, policies, commitments, plans and targets to manage its nature strategy. –CDP’s corporate questionnaire also enables companies to disclose on climate change, deforestation, water security, plastics and biodiversity. CDP is partially aligned with the TNFD disclosure recommendations and is working towards full alignment. –WBCSD has developed sector-specific metrics to measure the state of nature, and pressures and responses of the forestry, agri-food, built environment and energy sectors. In 2025, it plans to develop additional metrics for the pharma and chemicals sectors. –The Nature Positive Initiative is developing indicators and metrics to define the state of nature and contributions to “nature-positive” outcomes. It will be launched in January 2025. Nature Positive: Role of the Automotive Sector 43