TNFD Framework - Corporate Biodiversity Reporting

Echoing the TCFD’s climate disclosure logic, this approach emphasizes the financial impact of nature-related risks and opportunities. It adheres to the principles of comparability, transparency, completeness, and forward-looking perspectives. It focuses on firms’ reliance on and impact on natural capital, particularly biodiversity.

Core Value

1. The system identifies and manages nature-related risks to reduce future environmental liabilities.

2. Enhance the company’s recognition in the capital market and its financing competitiveness.

3. Enhance supply chain competitiveness and international market access capabilities.

4. Support the company’s sustainable strategy and long-term resource security

5. Enhance brand reputation and social credibility

Services Provided By SUSTECH

Report preparation process (LEAP methodology)

1. Locate

Identify the company’s key business activities and geographic locations (operational facilities, supply chain, upstream raw material sources).
Identify sensitive areas related to nature: areas with high biodiversity value, protected areas, red line areas, and ecologically fragile areas.

2. Evaluate (Assess Dependence and Impact)

Dependence: A company’s dependence on ecosystem services, such as water, pollination, soil quality, and climate regulation.
Impacts: Positive and negative impacts of business operations and supply chains on biodiversity (habitat alteration, pollution, resource overexploitation, and the risk of invasive species).
Quantifiable indicators include: water consumption, land use type, pollutant emissions, and ecological restoration area.

3. Assess (Assess risks and opportunities)

Physical risks: Ecosystem degradation leads to supply chain disruptions and increased resource costs.
Transformation risks: increasingly stringent regulations (red lines, protected area bans), financial market requirements (green financing thresholds).
Opportunities: Eco-products market, Natural Solutions (NbS), and sustainable brand value enhancement.

4. Prepare (Prepare for response and disclosure)

Governance: The board of directors’ oversight and division of responsibilities regarding nature-related risks.

Strategy: Integrating biodiversity conservation with corporate strategy (carbon neutrality, circular economy, green procurement).

Risk management: monitoring mechanisms, supply chain review, and ecological compensation plans.

Indicators and targets: such as restored ecological area (ha), water recycling rate (%), and nature positive contribution targets.

Disclosure: Refer to TNFD’s recommended disclosures (governance, strategy, risk management, metrics, and objectives).

suggestion:

The report can be combined with GBS (Global Biodiversity Framework Targets) and China’s “Dual Carbon + Ecological Civilization” policy to meet both domestic and international compliance and investor needs.
It is recommended to refer to the CDP Nature Questionnaire and GRI 304 Biodiversity Standards to supplement the disclosure of details.
The report may include nature-related maps/data tables (such as an analysis of the overlap between key supply chain raw material sourcing areas and ecologically sensitive areas).

SUSTECH

SUSTECH is an innovative technology service company with artificial intelligence, big data, and blockchain at its core. We specialize in ESG (Environmental, Social, and Governance) testing, certification, and compliance management, helping companies achieve their sustainable development goals. Through digital and intelligent means, we are redefining the testing and certification industry, making ESG compliance more transparent, efficient, and credible.

Core Advantage: Technology-enabled ESG Compliance

Intelligent ESG Data Acquisition and Analysis

- IoT Environmental Monitoring: Real-time collection of data on enterprise carbon emissions, wastewater discharge, energy consumption, etc., and automatic generation of ESG reports.
- AI carbon footprint calculation: Based on supply chain data, it accurately calculates the carbon footprint of a product throughout its entire lifecycle, in accordance with international standards such as ISO 14064 and GHG Protocol.

ESG Certification and Rating Optimization

- Automated compliance checks: AI compares data against global ESG standards (such as GRI, SASB, TCFD) to identify ESG risks for enterprises and provide improvement suggestions.
- ESG Rating Enhancement Solution: Combining industry best practices, we develop actionable ESG optimization strategies to help companies improve their ESG ratings from MSCI, S&P, and other ranking bodies.

Blockchain-based Evidence Storage and Transparent Traceability

Tamper-proof ESG reports: All test data is stored on the blockchain to ensure traceability and auditability, enhancing the trust of investors and regulators.
Supply chain ESG penetration management: Tracking supplier ESG performance to ensure compliance with the requirements of major international manufacturers.