Introducing Impacts & Dependencies: critical for CSRD, TNFD, SBTN and mitigating nature risks
Nala’s new Impacts & Dependencies module streamlines nature compliance, disclosure, target-setting, and risk management. Gain a precise understanding of how your direct operations & supply chain depend on and impact nature.
Understanding Your Business’s Interaction with Nature
Nature-related risks are business risks. Businesses must therefore move beyond traditional sustainability metrics and gain a clear understanding of how they interact with nature. Effective corporate nature management requires insight into how business activities both depend on and impact ecosystems and biodiversity. This insight is required for compliance with the EU CSRD (Corporate Sustainability Reporting Directive), disclosure with TNFD (Taskforce on Nature-related Financial Disclosures) and GRI (Global Reporting Initiative) as well as setting targets with SBTN (Science Based Targets Network).
A short recap: The TNFD LEAP Framework provides a step-by-step approach for organizations to assess their nature interactions:
L: Locate your interface with nature and assess its condition.
E: Evaluate impacts and dependencies — the core focus of this module.
A: Assess risks and opportunities.
P: Prepare for reporting.
Nala’s Impacts & Dependencies Module provides businesses with a structured, data-driven way to assess their interactions with nature at site level. By identifying environmental pressures and dependencies on ecosystem services, companies can pinpoint nature hotspots across their operations and evaluate risks and opportunities.
A Powerful Tool for Identifying Nature Hotspots
Our intelligence on nature Impacts & Dependencies for each business activity integrates seamlessly with our State of Nature data, providing a holistic Nature Analytics suite. While the State of Nature module evaluates the condition of nature across biodiversity, land, and water at company and supply chain sites, Impacts & Dependencies assesses how business activities contribute to environmental pressures and rely on ecosystem services.
Key features of the module:
1) Intuitive Activity-Based Assessment – Uses the ENCORE knowledge base to estimate environmental pressures and dependencies based on business activities, and primary impact data (e.g. water use, land use, pollutants) where available
2) Seamless Integration with State of Nature Data – Combines insights on local state of nature with corporate pressure estimates to enable a meaningful nature impact assessment
3) Quantification of Impact Levels – Provides a transparent impact scoring system based on pressure and state of nature data to support in-depth analysis and prioritisation
4) Automated Materiality Assessment & Reporting via Framework Scan: Fully aligns with CSRD ESRS E4, identifying sites with material impacts on Biodiversity and Ecosystems.
5) Flexibility: Users can override automated assessments with more precise site-level data or expert insights where available
Knowledge Share: Pressures vs Impacts
In corporate nature management, pressures and impacts are often mixed up. While related, they are distinct concepts. Pressures are the direct effects of human activities on the environment - such as resource extraction, emissions, or disturbances. Impacts, on the other hand, refer to the resulting (negative) changes in the state of nature - such as increased water scarcity or loss of intact natural land. This distinction follows the Driver-Pressure-State-Impact-Response (DPSIR) framework.
A meaningful assessment of nature impacts must therefore integrate both environmental pressures and the state of nature. Nala’s Impacts & Dependencies Module ensures this by transparently quantifying an impact score, combining site-specific pressure estimates with relevant state of nature data that directly reflect sensitivity to those pressures.
Some frameworks, like the Taskforce on Nature-related Financial Disclosures (TNFD) and the Natural Capital Protocol, refer to pressures as Impact Drivers.
Case Study 01: Simplifying CSRD ESRS E4 Disclosures
Sustainability managers face the complex task of conducting impact materiality assessments under ESRS E4, requiring them to identify sites with material impacts on biodiversity and ecosystems. This assessment demands an integrated approach, factoring in nature impacts, ecological status, and proximity to biodiversity-sensitive areas.
The CSRD Framework Scan within Nala’s platform streamlines this process by automating site-level assessments and identifying locations relevant for analysis and disclosure under CSRD ESRS E4 Articles 16(a) and 17(a).
This automation significantly improves the reporting process for our customers, saving them weeks of time:
“Nala saved us significant time and resources in preparing for CSRD. Their platform provided us with the data required for ESRS E4 on Biodiversity. For content-related questions, we received feedback from an expert within a very short time and they were always available for technical discussions. Nala proved to be also very customer-oriented.”
Maike Kuske - Specialist for Responsible Value Chains at Continental
Case Study 02: Navigating Nature Risks at a Pistachio Ranch
Just like climate risk, nature risk is becoming an increasingly critical issue for companies - affecting sustainability, risk, and finance departments alike. Detecting and responding to these risks is essential for long-term resilience across the value chain and regulatory compliance.
The Pistachio Ranch in California, USA serves as a strong example of how the Impact & Dependency Module helps businesses navigate nature-related risks in agricultural supply chains.
The site-specific view offers key insights into the nature-related impacts and dependencies at the ranch. When combined with State of Nature data, these dependencies provide an initial assessment of nature-related risks, relevant for retailers like Walmart that source from this supplier. Key risks include:
a) Water Scarcity: The farm’s high water dependency in a severely water-scarce region threatens supply stability. Sustainability teams at Walmart can leverage these insights to collaborate with their supplier on water efficiency measures and/or explore alternative sourcing.
b) Soil Degradation: The farm relies on soil retention in an area with high land degradation risk, threatening crop fertility and yields. Walmart can use this data to promote regenerative farming and support land restoration initiatives.
To ensure long-term impact, these insights should feed into supplier training and monitoring systems to track changes over time.
For a deeper dive into measuring and mitigating nature risks, check out our Risk Module - reach out if you're interested!
Get Started with Nala’s Nature Analytics
The launch of the updated Impacts & Dependencies Module marks a significant step in our mission to provide businesses with actionable, science-backed nature insights. And this remains just the beginning - exciting updates to Nala’s Nature Analytics suite are already in development.
If you’re looking to streamline your corporate nature & biodiversity management and get ahead of regulatory requirements, get in touch with us today to learn how Nala can support you.
