The Taskforce on Nature-related Financial Disclosures (TNFD) asks organisations to understand how their activities depend on and impact nature. This screener runs a simplified LEAP assessment for a single business activity, combining location sensitivity, ecosystem-service dependency, and environmental impact into a materiality rating that tells you whether the activity needs full TNFD assessment.
How it works
The LEAP approach — Locate, Evaluate, Assess, Prepare — is condensed into a weighted screen. Location sensitivity amplifies both dependency and impact, because the same activity is far riskier in a sensitive place:
dependency score = mean of ecosystem-service dependency ratings (0–3)
impact score = mean of nature-impact ratings (0–3)
location factor = 1.0 (low) · 1.3 (moderate) · 1.6 (high sensitivity)
materiality = (dependency + impact) / 2 × location factor
rating = Low · Medium · High · Priority
A Priority rating means the activity should move into detailed evaluation and likely TNFD disclosure; a Low rating can be documented and deprioritised.
Understanding the four LEAP steps in this screener
Locate is captured through the location sensitivity question. The same factory emitting the same pollutant is a low-priority screen result in a non-sensitive industrial zone and a Priority result if it sits inside or adjacent to a protected area or a biodiversity hotspot. The key question is: does the activity’s footprint overlap with a place where nature is particularly sensitive or already stressed?
Evaluate covers ecosystem-service dependencies. Examples include a beverage company depending on fresh water, a food producer depending on pollinators, or a coastal resort depending on coral reef tourism. Rate each service your activity relies on from not at all to highly dependent.
Assess covers nature impacts. Key impact drivers include land-use change (clearing habitat), water extraction, pollution discharge, invasive species introduction, and resource overexploitation. Rate the severity and scale of each that applies.
Prepare is what you do with the output: activities rated High or Priority are flagged for detailed disclosure-ready assessment; Medium ratings are monitored; Low ratings are documented and set aside unless conditions change.
Worked example
Consider a textile factory on the banks of a river in a water-stressed basin (high location sensitivity). It rates highly for water dependency (surface water for dyeing) and moderately for water pollution (dye effluent). With a high location factor of 1.6, the materiality score is elevated into the Priority band even though the impact score is only moderate, because the location amplifies everything. This is exactly the kind of result the TNFD process is designed to surface — the financial risk from water scarcity and regulatory scrutiny is material even if the company’s absolute discharge volumes look small.
Tips for practical use
The most commonly underestimated risk is dependency, not impact — businesses track their pollution but rarely quantify how much they rely on free ecosystem services like reliable water, stable climate, or pollination. If an activity sits in a water-stressed basin and depends heavily on water, its materiality will be high even with modest direct impact. Use the priority list to focus your detailed TNFD work where location, dependency, and impact reinforce each other, and confirm formal disclosure obligations with your reporting advisers.