Financial cost of operating areas lost due to nature-related transition risks
Measurement answer
What this metric measures
Reports the description of operating areas lost due to policy-driven nature-related transition risks and their associated financial cost.
Specification
Metric specification
- Result format
- Structured table
- Unit
- currency — source-defined reporting unit
- Reporting basis
- Reporting period
- Aggregation
- Total associated financial cost, with affected operating areas separately described
- Pillar
- Environmental
- Topic
- Nature-related transition risk
- Controlled domain
- Nature, biodiversity and land
- Entity type
- Metric
Reporting boundary
Organization operating areas lost due to policy-driven nature-related transition risks during the reporting period
Verified source occurrences
Framework coverage
This is one canonical metric. The bindings below show every verified framework occurrence without creating duplicate metric pages. Edition, disclosure, role, and relationship remain source-specific.
- Adopting Disclosurer018
TNFD LEAP approach
- Publisher
- Taskforce on Nature-related Financial Disclosures
- Edition
- Version 1.1, October 2023
- Requirement
- Not Specified
- Relationship
- Reuses Canonical Metric
- Mapping outcome
- Reused
- Source locator
- TNFD LEAP Approach v1.1, Annex 1, Table 26, PDF page 173, metric row 10
- Adopting DisclosureSource evidence
TNFD Recommendations
- Publisher
- Taskforce on Nature-related Financial Disclosures
- Edition
- September 2023
- Requirement
- Not Specified
- Relationship
- Defines Disclosure
- Mapping outcome
- Direct Evidence
- Source locator
- TNFD Recommendations, September 2023, Annex 2, Table 9, page 94, metric A10.0
- Adopting Disclosureba26c8a83a6051c5862c
TNFD Recommendations
- Publisher
- Taskforce on Nature-related Financial Disclosures
- Edition
- September 2023
- Requirement
- Not Specified
- Relationship
- Maps Source Identity
- Mapping outcome
- Published
- Source locator
- Page 94, Table 9, A10.0 | TNFD Recommendations, September 2023, Annex 2, Table 9, page 94, metric A10.0
Value structure
Dimensions and units
- Unit
- currency — source-defined reporting unit
- Reporting basis
- Reporting period
Unit meaning: Values use currency under the disclosed TNFD Recommendations method, period, location and reporting boundary.
Table fields and units
- Operating area
- Geography
- Policy-driven nature-related transition-risk description
- Financial cost
- Currency
- Valuation or cost-recognition basis
- Direct or proxy method
Published dimensions
- operating area
- geography
- nature-related transition-risk driver
- policy-driven transition-risk type
- direct-versus-proxy method
- reporting period
Calculation method
Formula information
- Status
- Specified
- Formula type
- Sum
Formula
Total associated financial cost = sum of associated financial costs for operating areas lost due to policy-driven nature-related transition risks during the reporting period.Apply the source-defined TNFD Recommendations method only within the disclosed location, ecosystem and value-chain boundary. A10.0 specifies a reportable financial outcome paired with descriptive context, rather than a calculation operand or eligibility test. It is retained as an Annex 2 optional additional structured metric. No shortlisted metric has the same transition-risk, operating-area-loss, financial-cost construct and boundary.
Variables
| Symbol | Variable | Definition | Unit |
|---|---|---|---|
C_i | Associated financial cost of lost operating area i | Financial cost associated with an operating area lost due to a policy-driven nature-related transition risk. | currency |
C_total | Total associated financial cost | Aggregate associated financial cost across reported lost operating areas. | currency |
Verified sources
Evidence and status sources
Sustopedia checked each record-specific claim directly against primary publisher material. Labels distinguish current measurement authority from future compatibility and corroborative, legal, edition, or method status context. Corroborative evidence can support a stated limitation but cannot establish the core measurement by itself.
Measurement evidence
- Measurement evidenceChecked 27 August 2026
Recommendations of the Taskforce on Nature-related Financial Disclosures
- Publisher
- Taskforce on Nature-related Financial Disclosures
- Edition
- September 2023
- Locator
- TNFD Recommendations, September 2023, Annex 2, Table 9, page 94, metric A10.0
Supports: The official TNFD Recommendations source supports the identity, boundary and method basis of “Financial cost of operating areas lost due to nature-related transition risks”.
Open official source
Use with context
Interpretation boundaries
Method disclosures required
Source-edition basis: Recommendations of the Taskforce on Nature-related Financial Disclosures, September 2023.
- Describe the operating areas lost.
- Disclose the associated financial cost of the lost operating areas.
- Identify the policy-driven nature-related transition risk associated with the loss.
- Disclose the reporting currency and the valuation or cost-recognition basis used.
- State whether reported cost is directly measured or estimated using a proxy method.
Record-specific limitations
- The metric is an optional additional metric in TNFD Annex 2, not an Annex 1 core global metric.
- The source specifies policy-driven nature-related transition risks; it does not establish a broader all-transition-risk boundary.
- The source requires a description alongside associated financial cost and does not prescribe a single currency, valuation basis, or calculation methodology.
Interpret this metric with the stated reporting boundary, period convention, value shape, and unit. Results prepared with different boundaries or conventions may not be directly comparable.
Measurement evidence supports the core record-specific claims described above. Corroborative evidence can support limitations, while compatibility and status sources provide their separately labelled context. None of these cards by itself determines an organisation's legal applicability, filing readiness, assurance status, or compliance conclusion.