As investors and regulators sharpen their focus on climate risk, nature-related risks are emerging as the next frontier in sustainable finance. Yet, for many sectors, the question remains: How do you measure and manage dependencies on ecosystems?
We recently partnered with Ranchland Capital Partners (“RCP”) to develop their first Taskforce on Nature-related Financial Disclosures (TNFD)-aligned disclosures, applying the TNFD framework to an unconventional asset class: ranchlands in the Rocky Mountain West. This experience offers valuable lessons for any organization navigating nature risk and opportunities.
Why TNFD Matters
The TNFD framework helps businesses identify and disclose how their operations depend on and impact nature. For ranchlands, these dependencies are direct and material: soil health, water cycles, and biodiversity underpin productivity and long-term value. Ignoring these factors is an environmental and financial risk.
Applying the LEAP Framework
The TNFD’s Locate, Evaluate, Assess, Prepare (LEAP) approach provided a structured way to map nature-related risks and opportunities across RCP’s value chain. Wherever possible, TNFD has intentionally drawn from existing high-quality methodologies already used by market participants. The framework is designed to be interoperable with established approaches, including the Nature Capital Protocol, the materiality assessment concepts embedded in the International Sustainability Standards Board’s (ISSB) guidance, and the impact materiality lens used by the Global Reporting Initiative (GRI) and the European Sustainability Reporting Standards (ESRS).
Key insights from LEAP included:
- Dependencies on rainfall regulation, soil retention, and biomass provisioning are critical to the operational success of Ranchland Capital Partners’ assets.
- Risks include climate variability, water scarcity, and ecosystem degradation, and opportunities include carbon credits, biodiversity markets, and sustainable recreation.
- Forward-looking strategies for regenerative grazing, water-efficient practices, and transparent reporting.
Lessons for Investors
- Nature risk is financial risk: Soil erosion, water scarcity, and biodiversity loss can erode asset value.
- Disclosure builds trust: Transparent reporting aligns with investor expectations and emerging regulations.
- Opportunities exist: Nature-positive practices can unlock new revenue streams, from ecosystem service credits to premium markets for sustainable products.
Connect with us to explore how TNFD principles can guide nature-positive investment strategies and why these matter for the future of real assets.
“ACA’s ESG team helped us cut through the noise quickly… We had many intuitive practices already in place, but ACA helped us translate those into a structured framework that was clear, scalable, and investor-ready…For any firm looking to elevate their ESG approach—especially those preparing to engage institutional capital—ACA is a highly effective partner. They understand both the regulatory landscape and the practical realities of building these systems from the ground up. Their ability to bridge strategy, compliance, and communication made a meaningful difference for our team.”
– Managing Partner, Ranchland Capital Partners
Turn TNFD Into Action
At ACA, we help organizations turn complex frameworks like TNFD into practical, measurable strategies, whether for disclosures, governance, or investor communications. If you’re considering nature-related risk management, we can help you.
By combining regulatory insight with practical implementation, we helped translate TNFD principles into actionable strategies for a niche asset class. This approach can be adapted for any organization seeking to integrate nature-related risk management into its ESG and investment planning.
We helped Ranchland Capital Partners develop their first TNFD-aligned disclosures by applying the LEAP methodology to identify nature interfaces, assess material risks, and highlight opportunities for regenerative practices. This work translated TNFD’s four pillars, Governance, Strategy, Risk and Impact Management, and Metrics and Targets, into practical, actionable steps.
Discover how we can help you put TNFD into practice with the same structured, actionable approach we bring to complex real asset portfolios.