Use TNFD to Integrate Nature into Business Strategy
Yinson Holdings Berhad总结
Applied a TNFD-aligned approach to assess nature-related dependencies, impacts, risks and opportunities across 26 global assets.
Context
Yinson Holdings Berhad, a global energy infrastructure company with key businesses in offshore energy, renewable energy and green technologies, sought to better understand and manage nature-related risks, dependencies and impacts across offshore production, renewable energy and office operations while aligning with emerging biodiversity and disclosure expectations. The company adopted the Taskforce on Nature-related Financial Disclosures (TNFD) framework to systematically assess nature-related risks and opportunities and support its broader sustainability strategy across operations in Asia, Africa, Europe and South America. (1)
Location of the initiative: Global (Asia, Africa, Europe and South America) across 26 assets and office locations.
Solution
Yinson implemented a nature-risk management framework aligned with the TNFD recommendations to integrate biodiversity and ecosystem considerations into corporate governance, risk management, strategy and reporting. The approach uses the TNFD LEAP methodology (Locate, Evaluate, Assess, Prepare) and the World Wide Fund for Nature Biodiversity Risk Filter (WWF BRF) to identify nature-related dependencies, impacts, risks and opportunities across its portfolio. (1)
The assessment covered 26 assets including Floating Production Storage and Offloading vessels (FPSOs), solar parks and office operations. Through the process, the company:
Mapped operational interfaces with nature.
Assessed proximity to Key Biodiversity Areas (KBAs) with 64.5% of assessed assets classified as low risk.
Evaluated water-related risks and biodiversity dependencies.
Analyzed nature-related risks and opportunities.
Assigned nature-related oversight within the company's existing board and management committee structure.
Developed a three-pronged nature strategy focused on responsible stewardship, biodiversity rehabilitation and investments in nature.
Responsible stewardship, biodiversity rehabilitation and nature investments.
Figure 1: Three-pronged nature strategy. Source: Yinson Holdings Berhad, Taskforce on Nature-related Financial Disclosures (TNFD) Report, p.12, 2025.
Impact
Sustainability Impact
Climate
The initiative primarily addresses nature-related impacts rather than a specific greenhouse gas reduction measure. However, it supports the company's broader sustainability strategy through investment in renewable energy, nature-based solutions partnerships and ecosystem resilience measures that are complementary to decarbonization efforts.
Nature
In 2025, the company applied the Taskforce on Nature-related Financial Disclosures' Locate, Evaluate, Assess and Prepare approach across 26 global assets, comprising eight offshore assets, three solar parks and 15 offices. The assessment combined sector-level dependencies and impact screening with asset-level location screening for biodiversity and water risk. The output reflects exposure and sensitivity profiles, rather than measured performance. The Key Biodiversity Area screening identified that 50% of the eight offshore assets were in locations with more than 50% overlap with Key Biodiversity Areas. The remaining 50% were in locations with between 10% and 50% overlap. The company explains that these percentages indicate geographic proximity rather than measured operational impact. Offshore projects are subject to environmental impact assessments before deployment to identify and mitigate biodiversity risks. (1) The findings support the company's ongoing approach to identifying, assessing and managing nature-related risks and impacts across its operations and future projects.
The water assessment also identified that all three solar parks covered by the initiative were in very high baseline water-stress areas, meaning annual water withdrawals in those areas exceed 75% of available renewable water supply. Solar module cleaning is the most water-intensive activity during solar farm operations. The company is exploring dry-cleaning methods for new projects and plans a phased approach that alternates between dry and wet cleaning, with the aim of phasing out wet cleaning in selected locations. (1)
Following the portfolio assessment, the company developed a three-part nature strategy covering responsible stewardship, rehabilitation and remediation of biodiversity, and investment in nature. The strategy includes environmental impact assessments, habitat rehabilitation, nature-based projects, tree planting, mangrove reforestation, and potential investment in carbon credits that support ecosystem preservation and biodiversity restoration. The report does not quantify the nature outcome attributable to these actions.
Social
The initiative strengthens consideration of impacts on Indigenous Peoples, local communities and other stakeholders by incorporating human rights oversight, stakeholder engagement processes and environmental assessments into nature-related decision-making. (1)
The framework helps identify potential socioeconomic risks linked to biodiversity loss, land-use change and ecosystem degradation that could affect community livelihoods and access to natural resources.
Business Impact
Benefits
The initiative provides several business benefits beyond sustainability:
Improves visibility of nature-related dependencies and risks that may affect operational resilience.
Better understanding between business teams and sustainability teams, on the importance of biodiversity risks/TNFD.
Supports compliance readiness for emerging biodiversity disclosure expectations and regulations.
Enhances governance by integrating nature-related decision-making into board and management oversight structures.
Improves prioritization of environmental investments and mitigation actions through portfolio-level risk screening.
Strengthens stakeholder confidence through transparent disclosure of nature-related risks and mitigation plans.
Supports long-term business resilience through improved early visibility of water stress, biodiversity and ecosystem risks across the asset base.
Costs
The assessment was conducted entirely in-house using existing sustainability, risk and operational resources, drawing from the publicly available WWF biodiversity risk filter. The company does not disclose implementation costs.
Impact Beyond Sustainability And Business
Co-benefits
Improved internal collaboration across sustainability, risk management and operational functions.
Enhanced understanding of interactions between climate, biodiversity and business resilience.
Increased participation in industry and policy discussions related to biodiversity and nature-based solutions. (1)
Potential side-effects
Potential challenges include:
Increased reporting and data-management requirements.
Limited availability and consistency of nature-related and biodiversity data across assets.
Potential additional compliance obligations as biodiversity regulation evolves.
These risks are managed through governance oversight, environmental impact assessments and ongoing stakeholder engagement processes. (1)
Implementation
Typical Business Profile
This initiative is most relevant for:
Energy and utilities companies.
Renewable energy developers.
Oil and gas operators.
Infrastructure and asset-intensive businesses.
Companies with geographically distributed operations.
Organizations beginning or advancing their nature-positive or biodiversity strategies.
Companies preparing for TNFD-aligned disclosure.
Approach
Establish governance and accountability
Responsible bodies: Board of Directors, Board Risk and Sustainability Committee, and Management and Sustainability Committee.
The Board assigned oversight of nature-related dependencies, impacts, risks and opportunities to the Board Risk and Sustainability Committee. The Management and Sustainability Committee was responsible for facilitating the flow of nature-related information to the Board committee. At the time of this assessment, both committees met quarterly, creating a recurring review and escalation cycle.
Inputs: Existing biodiversity policy, Board Charter, committee terms of reference and sustainability risk-management processes.
Output: Defined Board oversight, management responsibility and quarterly review arrangements.
Define the assessment scope
Responsible functions: Sustainability team, environmental functions and asset-operating teams.
The company compiled a portfolio of 26 assets, comprising eight offshore assets, three solar parks and 15 corporate or operational offices across Asia, Africa, Europe and South America.
Inputs: Asset type, geographic coordinates, operating location and relevant value-chain relationships.
Output: A consolidated asset inventory for portfolio screening.
Locate interfaces with nature
Responsible functions: Sustainability team, supported by asset teams.
The company mapped its operational footprints, considered value-chain relationships and screened asset proximity to Key Biodiversity Areas. The World Wide Fund for Nature Biodiversity Risk Filter was used to screen relevant oil and gas, solar and wind sectors.
Inputs: Asset locations, sector classifications, Key Biodiversity Area data and biodiversity-risk datasets.
Output: Initial identification of locations and asset classes with potentially material interfaces with nature.
Evaluate dependencies and impacts
Responsible functions: Sustainability and environmental functions, with operational validation from relevant asset teams.
The company evaluated sector dependencies and impacts using the Biodiversity Risk Filter and mapped relevant ecosystem services. The assessment considered the scale and size of dependencies and impacts and drew on input from internal and external stakeholders.
Inputs: Sector dependency and impact indicators, water availability, ecosystem condition, pollution, land and sea-use change and socioeconomic indicators.
Output: A structured profile of nature-related dependencies and impacts for each relevant asset class.
Assess biodiversity and water exposure
Responsible functions: Sustainability, risk and environmental functions.
The company used the Biodiversity Risk Filter to assess landscape physical risk and proximity to Key Biodiversity Areas. It also used the Water Risk Filter to assess basin physical risk and baseline water stress. The water assessment considered availability, drought, flooding, water quality and ecosystem-service conditions.
Output: Risk distributions by asset class, including the identification of Key Biodiversity Area exposure for offshore assets and very high baseline water stress for solar parks.
Prioritize locations for detailed assessment and response
Responsible functions: Management and Sustainability Committee, environmental functions, risk management and asset teams.
Portfolio screening was used to identify locations requiring further attention. Existing environmental impact assessments and regulatory controls were considered when interpreting location-based scores, particularly for offshore and solar projects. The report states that screening results facilitate prioritization, but it does not disclose the company's detailed decision thresholds, scoring criteria or approval process.
Select and implement responses
Responsible functions: Asset operations, environmental management, sustainability and relevant project teams. The company organized potential responses through three strategic areas:
Responsible stewardship of waste, water, effluent and air emissions.
Habitat rehabilitation and remediation, supported by environmental impact assessments.
Investment in nature-based projects, ecosystem conservation and biodiversity restoration.
For solar assets, the company is exploring dry module-cleaning methods for new projects and plans to alternate dry and wet cleaning before potentially phasing out wet cleaning in selected locations.
Monitor, review and disclose performance
Responsible functions: Asset teams, environmental or sustainability data owners, the environmental, social and governance task force, the Management and Sustainability Committee and the Board Risk and Sustainability Committee. The company adopted TNFD core disclosure indicators and reported metrics for greenhouse gas emissions, freshwater consumption, water discharge, waste and non-greenhouse-gas air emissions. The report states that nature-related progress will be reported biennially beginning in 2025 as methodologies, data availability and internal capabilities mature.
Review cycle: Operational data are consolidated for management review, while the two governance committees meet quarterly. The TNFD-aligned disclosure is planned to be updated biennially.
Stakeholders Involved
Board-level oversight
The Board of Directors supervised the company's wider sustainability strategy and delegated nature-related oversight to the Board Risk and Sustainability Committee. The committee reviewed identified and emerging risks, evaluated action and mitigation plans, monitored progress against sustainability targets and referred major measures to the Board for approval.
Management coordination
The Management and Sustainability Committee, chaired by the Group Chief Executive Officer, considered sustainability matters affecting company strategies, policies, plans and frameworks. The committee facilitated the flow of information to the Board Risk and Sustainability Committee and was responsible for implementing risk-management policies and maintaining risks within tolerable levels.
Cross-functional implementation
The environmental, social and governance task force brought together representatives from different business functions. The task force met regularly to support implementation of strategies addressing nature-related risks and opportunities, including biodiversity, ecosystem management and nature-based credits.
Asset and operational teams
Offshore production, renewable-energy and office teams provided asset-level information and applied relevant operational and environmental controls. The report connects offshore operations to waste-management plans, pollution controls and environmental impact assessments. Renewable-energy teams are responsible for complying with environmental requirements and exploring water-efficient module-cleaning approaches. (1)
External data and methodology providers
The company used an external biodiversity and water-risk screening suite for portfolio-level biodiversity and water-risk screening. The tools supplied sectoral and location-based datasets used to identify assets requiring attention.
Environmental and nature-project partners
External partners supported the exploration of nature-based projects, project development and monitoring, reporting and verification. The company signed a memorandum of understanding with a national forest-finance partner to explore nature-based projects and formed a partnership with a climate-technology company to explore and co-develop carbon projects. The report describes these as exploratory or development partnerships and does not report completed nature outcomes.
Local communities and other affected stakeholders
The company's Stakeholder Communication Policy and Procedure provides a framework for stakeholder engagement, feedback collection and consideration of legitimate stakeholder interests. Nature-related assessments and decision-making are undertaken within this broader stakeholder engagement framework. (1)
Key Parameters To Consider
Initiative maturity: Emerging but increasingly established governance and disclosure practice driven by TNFD adoption. (1)
Geographical relevance: Particularly relevant where operations interact with sensitive ecosystems or water-stressed regions. (1)
Data requirements: Requires asset mapping, biodiversity screening and environmental performance data. (1)
Regulatory relevance: Supports preparedness for evolving biodiversity and nature-related disclosure expectations. (1)
Technical prerequisite: Availability of biodiversity, ecosystem and water-risk assessment tools. (1)
Implementation timeline: In 2025, with the publication of its inaugural TNFD Report, the company established the foundation for the TNFD journey through an initial assessment of nature-related dependencies, impacts, risks and opportunities. The company intends to update the report biennially, progressively evolving from primarily qualitative disclosures towards more quantitative assessments, including risk integration and the development of measurable targets.
Implementation And Operations Tips
Main challenges
Collecting consistent biodiversity and water-risk data across diverse global assets.
Assessing risks across multiple operating environments and ecosystems.
Integrating nature considerations into existing governance and risk-management processes. (1)
How to overcome them
Use standardized assessment methodologies such as the TNFD LEAP approach.
Apply portfolio-level screening tools before undertaking detailed assessments.
Align nature-risk management with established sustainability governance structures.
Prioritize high-risk locations for deeper analysis and mitigation planning. (1)
Additional tips
Conduct environmental impact assessments before project development in sensitive areas.
Include both biodiversity and water-related risks in assessments.
Update assessments periodically as methodologies and data improve.
Engage local stakeholders early in project planning and implementation. (1)