Priority Sites Identification

Priority sites identification

Purpose

This methodology provides a standardized approach to assess the materiality of each site or geolocated entity in line with the TNFD LEAP approach's definition of priority locations. The goal is to assign a materiality level based on both the intensity of the site's impacts and dependencies and the environmental sensitivity of its surroundings, using a consistent, quantitative framework.

Materiality classification logic

Each site is assessed across 9 environmental dimensions: 1 for sensitivity, 4 for material impacts (linked to IPBES pressures) and 4 for material dependencies (linked to ecosystem services):

• Sensitivity: proximity and potential interaction with biodiversity-sensitive areas (protected areas, biodiversity hotspots...)
• Impacts: Ecosystem Use, Pollution, Overexploitation, Invasive Species
• Dependencies: Supporting services, Provisioning services, Mitigating services, Cultural services

These 9 dimensions are covered by risk indicators: 10 transition risk indicators cover impact and sensitivity dimensions, while 8 physical risk indicators cover dependency dimensions. These indicators are a subset of ENCORE's risk indicators; coverage is currently being expanded.

For each indicator, materiality is assessed using a dual-flag approach:

• Activity Flag: indicates whether the activity occurring on site potentially generates a significant impact or dependency for that dimension. Example: a site with high ecosystem use intensity will trigger the activity flag for the land use dimension.
• Proximity Flag: indicates whether the site is located in or near an area that is critical for that dimension. Example: a site located within a deforestation front will trigger the proximity flag for the land use dimension. The buffer used for proximity assessment is adjusted to reflect the site's area of influence, which varies according to the type of activity, following the UNEP-WCMC methodology.

Combining both flags yields 4 levels of materiality:

Risk indicators and flagging rules

The following indicators are currently available on the platform. For each, materiality is assessed using the dual-flag approach described above.

Transition risk example — Emissions of toxic pollutants to water and soil

• Dimension: Pollution
• Activity flag: ENCORE materiality rating >= High OR ecotoxicity footprint >= 5% of the company's total ecotoxicity impact
• Proximity flag: Site located in a zone rated High or above on the Pesticide Use Risk Map

Physical risk example — Flood mitigation services

• Dimension: Mitigating services
• Activity flag: ENCORE dependency rating >= High
• Proximity flag: Site located in a zone rated High or above on the Riverine Flood Risk layer (Aqueduct 3.0)

The full list of spatial data layers used for proximity flags is available on request.