Priority Sites Identification

Priority sites identification

Based on site location data (GPS coordinates), Darwin identifies priority sites as defined in the TNFD LEAP approach (L4).

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 (see the buffer methodology below).

Materiality is proximity-gated: a site is material for a dimension only if it carries a proximity flag for that dimension. The activity flag — which must concern the same ENCORE pressure as the proximity flag — then sets the level:

Activity flag methodology

Impact dimensions — the activity flag is raised if at least one of the following criteria is met:

1. ENCORE-based criterion: the Scope 1 ENCORE materiality score for the indicator is >= High (score >= 4), derived from the site's product or monetary input data at Scope 1. When no such data is available, a default activity is assigned based on the site type (see the buffer & default activity table below).
2. Footprint-based criterion — only two indicators carry one, and they use different threshold types:

All other impact indicators — including ecotoxicity (toxic pollutants) and eutrophication (nutrient pollutants), as well as Area of freshwater use, Area of seabed use, Disturbances, Emissions of non-GHG air pollutants, Generation and release of solid waste, and Biotic resource extraction — rely on the ENCORE-based criterion only.

For sensitive sites, the activity flag is raised if the site contributes more than 10% of the company's total biodiversity impact, or if any Scope 1 materiality impact score is >= 4.

Dependency dimensions — the activity flag generally relies on the ENCORE Scope 1 materiality score (>= High / score >= 4). The exception is water-related dependencies (Water supply): the flag also fires when the site accounts for >= 5% of the company's total freshwater consumption or withdrawal.

Buffer methodology and default activity per site type

Buffer distances define each site's "area of influence" for proximity flag assessment. The approach follows the IBAT Biodiversity Disclosure methodology, which applies differentiated buffer sizes based on literature and expert knowledge, adapted to Darwin's site type classification. Buffers range from 5 km (low-impact sites) to 50 km (mining); 20 km is the default for unclassified operations.

Default activities refer to the monetary models classification.

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 — Area of land use

• Dimension: Ecosystem Use
• Activity flag: ENCORE materiality rating >= High OR land-use footprint >= 5% of the company's total land-use impact
• Proximity flag: Site located within a Global Forest Watch canopy-loss area (2020–2023)

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.

Deforestation tab computation

The deforestation tab uses the Global Forest Watch canopy-loss raster (2020–2023, ≥ 50% canopy cover). For each site, the system reads all raster pixels within a circular buffer (1 km and 5 km radius) and computes the deforested area as the sum of each pixel's area weighted by its canopy-loss fraction (a pixel with 40% canopy loss contributes 40% of its surface). This gives a proportional estimate rather than a binary flag. The materiality proximity flag for land use is computed separately from this tab: on the same Global Forest Watch layer it fires by presence — i.e. when the site's buffer intersects any mapped canopy-loss area — not by a fractional threshold.