A methodology to support the forest products sector with conducting nature risk and opportunity assessments aligned with the Taskforce on Nature-related Financial Disclosures (TNFD) has been released. The methodology was based on the experience of West Fraser, one of the world’s largest producers of renewable wood building products, in applying the TNFD guidance. Pollination had the opportunity to support this work with West Fraser and partners and helped develop the TNFD aligned methodology and the nature risk and opportunity assessment for Alberta’s forest products sector.
In close collaboration with West Fraser and with scientific support from the National Council for Air and Stream Improvement (NCASI), geospatial analytics from Earth Blox, and funding from the Forest Resource Improvement Association of Alberta (FRIAA), Pollination’s advisory team applied its strategy, technical, market, and implementation expertise on the TNFD to help develop the methodology, which outlines a structured process for:
- Scoping nature-related assessments
- Identifying where operations intersect with ecologically sensitive areas
- Evaluating dependencies on ecosystem services
- Assessing nature-related impact drivers
- Translating dependencies and impacts into business risks and opportunities
- Preparing organizations for TNFD-aligned reporting
“This new methodology is a vital reference for companies in the forest products sector as well as other land use sectors seeking to understand, report and integrate nature-related risks and opportunities into their business strategies, aligned with market-leading guidance from the TNFD,” said, Carter Ingram, Pollination’s Managing Director.
The release of the methodology comes following the publication of West Fraser’s first report aligned with the TNFD.
“The report is a great example of how leading companies like West Fraser are applying the TNFD framework to support understanding, management and communication of its impacts and dependencies on nature in a way that is practical, scientifically grounded and aligned with the context of their business,” Ingram said.
As part of the assessment, Pollination worked with geospatial analytics company, Earth Blox, to assess West Fraser’s Alberta operations, covering 21 Forest Management Units (FMUs) and 13 mill sites. Pollination applied its expertise to translate the scientific data and outputs generated from the geospatial analysis into business-useful insights and supporting metrics that can be integrated into West Fraser’s strategy and decision making.
“The geospatial analytics infrastructure and partnership with Earth Blox was critical for operationalizing the TNFD’s Locate, Evaluate, Assess, and Prepare (LEAP) approach across a wide span of ecological factors and operational landscapes and applying it in the context of West Fraser,” said Ingram.
As nature-related risks continue to increase and impact business and supply chain resilience and as momentum on nature-related commercial opportunities continue to grow, Pollination supports clients on undertaking TNFD-aligned risk and opportunity assessments and integrating insights from these assessments into business strategy and design of financing and investment solutions.
Both the methodology and West Fraser’s TNFD report are valuable resources for organizations exploring TNFD implementation and demonstrate how organizations can conduct credible, scalable nature-related assessments to identify and evaluate nature related dependencies and impacts, mitigate related risks, and capture commercial opportunities.
Read the methodology: West Fraser TNFD Methodology Case Study.pdf
