Level 2 · Decision guide·TNFD · Disclosure guides
Nature Dependencies and Ecosystem Services: How to Map What Your Business Relies On
A practical method for connecting business processes to environmental assets, ecosystem services, criticality, substitutes, controls and financial consequences
Published passport
Current as at 10 August 2026
Reviewed by
Dr Ross KurinkoLinkedIn
Strategic ESG Advisor · IFRS S1 & S2 / GRI / ESRS expert
GRI Certified Global Trainer · PhD, University of Cambridge · ESG-AI expert
15+ years on FTSE 100 & Fortune Global 500 disclosures
Canary Wharf, London
LRA educational guidance · Not issued or endorsed by TNFD
Edition written against
—
TNFD Recommendations v1.0 are voluntary recommendations. LEAP and other TNFD publications provide implementation guidance. Dynamic datasets …
Published
10 Aug 2026
Knowledge Hub guide
Last reviewed
10 Aug 2026
Short answer
The answer, before the reasoning
Map a nature dependency as a causal pathway: identify the business process, environmental asset, ecosystem service received, required quantity or quality, location and time period, and what happens if the service deteriorates. Familiar groups include provisioning services such as water, biomass and genetic resources; regulating and maintenance services such as flood control, water purification, pollination and climate regulation; and cultural services such as recreation, identity or spiritual value.
Then assess criticality, substitutability, geographic concentration, time to disruption, current controls and residual exposure. A control or technological substitute can reduce vulnerability, but it does not erase the underlying dependency. The result should be a dependency register linked to operational and financial consequences. A general statement that the business “depends on healthy ecosystems” is not a controlled dependency assessment. The pathway must identify the service, location, business use and consequence.
Educational practitioner guidance. Not legal, scientific-validation or assurance advice. Apply TNFD to the organisation's facts, stated materiality approach, ecological context and reporting basis.
Quick orientation
Quick orientation
- Applies to
- Direct operations and priority upstream/downstream interfaces selected through Locate and value-chain screening.
- Primary decision
- Which ecosystem services are operationally important, where are they supplied, how substitutable are they and what disruption pathways require escalation?
- Core outputs
- Dependency pathway map, criticality/substitutability matrix, controls record, evidence links and financial-consequence fields.
- Key TNFD anchors
- LEAP Evaluate E1-E3, TNFD metrics guidance and the TNFD glossary.
- Common confusion
- Environmental assets, ecosystem services, dependencies, controls and risks are connected but not the same.
1. Start with a business process, not an abstract topic
A dependency exists when the organisation relies on an environmental asset or ecosystem service to operate, produce, sell or protect value. “Water”, “biodiversity” or “healthy soils” are broad labels. They become useful when the assessment states what the process receives, from which ecosystem and location, in what quantity or condition, and how a change would affect performance.
A beverage plant may depend on groundwater quantity and quality; an agricultural processor on crop production, pollination, soil formation and erosion regulation; a coastal hotel on beach stability, water quality, amenity and storm protection. One ecosystem can provide several services and one service can support several processes.
Rule
DEPENDENCY PATHWAY
<p>Business process → environmental asset → ecosystem service → required service level → dependency → control or substitute → operational and financial consequence.</p>
2. Keep the concepts separate
The metric and owner change at each layer. A water-volume metric describes business use; a catchment indicator describes context; a service indicator describes availability; and an operational metric describes disruption. None alone is the full pathway.
In practice
| Concept | Working meaning | Example |
|---|---|---|
| Environmental asset | Naturally occurring living or non-living component that provides benefits or supports processes. | Aquifer, wetland, soil, forest, coastal habitat or species population. |
| Ecosystem service | Contribution of ecosystems to people and economic activity. | Water supply, flood regulation, pollination, erosion control or recreation. |
| Dependency | Reliance on an asset or service for a business process. | A plant requires reliable suitable-quality freshwater. |
| Control/substitute | Action, technology, supplier or process reducing exposure or replacing part of the service. | Storage, treatment, desalination, alternate source or crop variety. |
| Risk pathway | How degradation or disruption creates business consequences. | Drought reduces water, limiting production and increasing cost. |
3. Ecosystem-service groups
Provisioning services are not limited to purchased resources
A seafood company relies on functioning habitats and viable stocks; a data centre can rely on freshwater even if a utility is the immediate supplier. The contract does not replace the underlying nature dependency.
Regulating services often become visible when they fail
Flood regulation, sediment retention, purification and erosion control may not appear as purchased inputs. Their value becomes visible when degradation raises treatment, insurance, maintenance, downtime or capital requirements.
Cultural services require attention to users and rights
Tourism, recreation, identity and spiritual values depend on who benefits and how access or quality changes. Engagement with Indigenous Peoples, Local Communities and affected stakeholders can be important and should not be reduced to a generic visitor metric.
In practice
| Service group | Illustrative services | Business examples |
|---|---|---|
| Provisioning | Water, biomass, fibres, food, timber, genetic resources and other material contributions. | Production inputs, cooling/process water, ingredients, feedstock and biological resources. |
| Regulating and maintenance | Pollination, water purification, flood/storm regulation, erosion control, soil formation, climate regulation and biological control. | Yield stability, asset protection, cleaner intake water and continuity. |
| Cultural | Recreation, aesthetic experience, identity, heritage, education, spiritual or relational values. | Tourism demand, destination value, licence to operate and rights-holder relationships. |
Rule
TERMINOLOGY NOTE
<p>Ecosystem-service classifications differ across scientific and reporting systems. Use a controlled taxonomy, map it to TNFD terminology and avoid claiming that one three-part classification is the only accepted structure.</p>
4. Build a location-specific pathway
A dependency pathway connects a process to an environmental asset and ecosystem service, then tests criticality, controls or substitutes and financial consequences.
The geographic unit follows the service pathway: aquifer or catchment for water, landscape for pollination, shoreline for coastal protection and destination/viewshed for tourism. The site boundary is often only the receiving point.
In practice
| Element | Questions | Evidence |
|---|---|---|
| Business process | Which activity, product, asset or stage receives the service? | Process map, production data, asset and supplier/customer evidence. |
| Environmental asset | Which ecosystem, water body, soil, habitat or species provides it? | Location map, ecological and catchment evidence. |
| Service | What contribution is received and by whom? | Definition, beneficiary/use evidence, expert or stakeholder input. |
| Requirement | What quantity, quality, timing, reliability or condition is needed? | Operating limits, specifications and seasonal demand. |
| Consequence | What happens if availability, quality or access changes? | Downtime, yield, quality, safety, licence or financial model. |
| Control/substitute | What reduces exposure and how quickly/costly can it activate? | Engineering controls, alternatives, storage and contingency plan. |
5. Criticality and substitutability
Dependency priority should consider operational importance and substitutability. Critical dependencies combine high importance with limited substitutes and require detailed evidence and action.
A score can organise evidence, but TNFD does not prescribe one universal dependency score. Explain criteria, thresholds, weighting, overrides and governance. A safety or legal dependency may require escalation despite a moderate average score.
In practice
| Criterion | Question | Evidence |
|---|---|---|
| Operational importance | How much output, safety, quality or continuity depends on the service? | Production limits, downtime, yield or quality sensitivity. |
| Service level | What minimum quantity, condition, timing or reliability is needed? | Specifications, permits and thresholds. |
| Substitutability | Can another source, technology, location or input provide the service? | Feasibility and compatibility evidence. |
| Time to substitute | How long would design, permitting, procurement or construction take? | Lead-time plan and regulatory dependencies. |
| Cost of substitute | What operating, capital, financing or environmental costs arise? | Business case and scenario range. |
| Concentration | Is reliance concentrated in one ecosystem, supplier, region or season? | Location/volume concentration. |
| Trend/resilience | Is the asset or service declining, volatile or cumulatively pressured? | State/trend and scenario evidence. |
In practice
6. Controls and substitutes reduce vulnerability, not the underlying reliance
| Control/substitute | What it can reduce | Residual questions |
|---|---|---|
| Storage/inventory | Short interruptions or seasonal mismatch. | How long is coverage? |
| Treatment technology | Quality variability or pollution. | Capacity, energy, waste and failure limits? |
| Alternative supplier/source | Concentration on one location. | Does it rely on the same basin/ecosystem? |
| Efficiency/redesign | Service required per unit of output. | Does total demand still grow? |
| Insurance | Some financial loss after an event. | Does it preserve continuity or ecosystem condition? |
| Restoration/protection | Condition or resilience of the service. | Location, additionality, time lag and outcome evidence? |
Caution
COMMON ERROR
<p>Record the control after identifying the dependency. A treatment plant or insurance policy is not proof that the organisation has no dependency.</p>
7. Connect disruption to finance
Analysis can begin qualitatively and become more quantitative as evidence matures. Retain causal link, time horizon, assumptions, range and affected unit. Avoid monetising before the ecological and operational pathway is credible.
In practice
| Disruption | Operational consequence | Possible financial channel |
|---|---|---|
| Reduced water availability | Curtailment, lower yield or delayed expansion. | Revenue, sourcing cost, capex and financing. |
| Declining water quality | More treatment, quality failures or downtime. | Operating cost, impairment, provisions and returns. |
| Loss of pollination | Lower crop yield/quality and supplier instability. | Input cost, margin, inventory and supplier investment. |
| Wetland/coastal degradation | Higher flood, erosion or storm exposure. | Insurance, repair, adaptation capex and asset value. |
| Landscape/species decline | Reduced tourism demand or community conflict. | Revenue, licence delay, remediation and financing. |
| Soil degradation | Lower productivity and higher input demand. | Procurement cost, capex and working capital. |
In practice
8. Dependency register fields
| Group | Fields |
|---|---|
| Identity | Dependency ID; location; process; product/commodity; stage; owner. |
| Nature pathway | Environmental asset; service; provider/beneficiary; geography; season/time horizon. |
| Requirement | Quantity, quality, timing, reliability, access or condition needed. |
| Criticality | Importance; substitutability; time/cost to substitute; concentration; confidence. |
| Controls | Control/substitute; capacity; evidence; failure mode; residual exposure. |
| State/trend | Reference, current condition, trend, source date and uncertainty. |
| Consequences | Operational effect; risk/opportunity; financial channel; trigger. |
| Governance | Owner; reviewer; evidence IDs; actions; targets; reassessment trigger. |
9. Practical process
1. Select locations/processes. Use Locate and value-chain priorities.
2. Identify environmental assets. Map ecosystem, water body, soil, habitat or species.
3. Identify services. State the contribution received.
4. Define requirement. Record quantity, quality, timing, reliability, access and scale.
5. Build causal pathway. Explain how change reaches the process.
6. Assess criticality/substitutability. Consider alternatives, concentration, lead time and cost.
7. Review controls/residual exposure. Test implementation, capacity and independence.
8. Connect to risk and finance. Document consequences, time horizons and channels.
9. Prioritise measurement/action. Select evidence, metrics, targets and responses.
10. Approve/update. Assign owner/reviewer and triggers.
10. Hypothetical example: coastal hotel
The register separates cultural services supporting demand, regulating services supporting protection and water-quality services supporting bathing. Insurance is financial mitigation, not a substitute. The sea wall reduces some exposure but has limits. The analysis records seasonality, alternatives, downtime, controls and restoration/adaptation options.
Hypothetical scenario
ILLUSTRATIVE SCENARIO
<p>A coastal hotel relies on clean water, beach amenity and reduced storm-wave energy. A nearby mangrove contributes habitat, water quality and coastal protection. The hotel has insurance and a sea wall, but roads and utilities remain exposed.</p>
Illustrative only. It shows how the decision is made, not wording that can be copied or relied on.
In practice
| Weak statement | Stronger illustrative statement |
|---|---|
| The hotel depends on biodiversity and has insurance against nature risks. | The hotel depends on coastal water quality and landscape amenity for demand and on natural and engineered protection for continuity. The assessment covers the hotel, access corridor, beach and mangrove. Insurance reduces part of financial loss but does not replace the services; criticality, controls and residual exposure are recorded. |
In practice
11. Common mistakes
| Mistake | Why it fails | Correction |
|---|---|---|
| Services listed without processes | Dependency and owner remain unclear. | Link service to process, location, requirement and consequence. |
| Purchased inputs treated as separate from nature | Supplier transaction conceals the ecosystem service. | Trace to environmental asset and production interface. |
| Global score used as site conclusion | Sector averages lack local condition and requirement. | Screen, then build location pathways. |
| Control called a substitute | It may still rely on the same service. | Assess capacity, independence, lead time and residual exposure. |
| Cultural services ignored | Important benefits, rights and conflicts are missed. | Identify beneficiaries and engage appropriately. |
| Score without thresholds/overrides | Result is not reproducible. | Document criteria, weights, confidence and approval. |
| Monetising before causal logic | Precision masks weak evidence. | Establish pathway and uncertainty first. |
Myth
“If a company has an engineering control or alternative supplier, it no longer depends on the ecosystem service.”
Reality
Controls and substitutes can reduce vulnerability. The dependency remains unless the process no longer relies on the service, and the substitute’s own dependencies must also be assessed.
Readiness
12. Readiness checklist
- Every dependency links to a process and location/stage.
- Environmental assets and services are separate fields.
- The service has a user/beneficiary and spatial/temporal scale.
- Quantity, quality, timing, reliability or access needs are described.
- The causal pathway explains how deterioration reaches the process.
- Criticality considers importance, substitutes, concentration and lead time.
- Controls have capacity, evidence and failure limitations.
- Substitutes are checked for transferred dependencies.
- State, trend and uncertainty evidence are linked.
- Operational and financial consequences are documented.
- Cultural services and rights-holder perspectives are considered.
- Owners, actions and triggers are recorded.
- 1. Which exact ecosystem service does the process receive and from where?
- 2. How would consequences differ for a one-week, one-season or multi-year disruption?
- 3. Have controls been tested as mitigations rather than used to delete the dependency?
Take it with you
The checklists as a working spreadsheet
Every checklist and table on this page, with empty status, owner and evidence columns for your team to fill in and keep.
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