Taskforce on Nature-related Financial Disclosures (TNFD)
Ferrovial recognizes the key role that biodiversity plays in providing services that support the economy and social well-being. We understand our responsibility to the natural environment and are committed to the protection and conservation of nature.
To this end, we are working on the implementation of the Taskforce on Nature-related Financial Disclosures (TNFD) recommendations to align our strategy and integrate natural capital into decision-making processes. The TNFD is a global initiative that seeks to address the crisis of biodiversity loss and ecosystem deterioration.
For the application of these recommendations, our methodology is based on different international standards and guidance – Natural Capital Protocol, GRI 304 Biodiversity, ESRS E4 Biodiversity and ecosystems y Common International Classification of Ecosystem Services (CICES)- and uses software tools that facilitate environmental management –ENCORE, Nature Map Explorer or WWF Biodiversity Risk Filter-.
We are focusing on the identification and analysis of dependencies, impacts, risks, and opportunities related to our activities. The analysis is characterized by:
- Having a broad scope, considering direct operations and the value chain (upstream and downstream).
- Focusing on business lines activities and specific assets.
- Considering the locations of our different infrastructures, as well as priority areas for biodiversity and ecosystem conservation.
Ferrovial seeks to identify the ecosystem services on which it depends to carry out its activities. The dependence on ecosystem services is being assessed to define those that are most relevant to the business lines. Among those, we have identified as significant water-related ecosystem services. Therefore, actions have been implemented and targets have been set for better management of these dependencies.
This is considered for decision-making processes and the development of different management and action plans.
The company aims to minimize the impact on the environment and integrate its infrastructures with the landscape.
Most projects are subject to an environmental impact assessment (EIA) and corresponding environmental impact statement (EIS), which identify negative impacts and establish minimizing and corrective measures that must be implemented.
Furthermore, in order to ensure responsible management of biodiversity, Ferrovial has developed a methodology and an internal tool for calculating the net debt of natural capital called Integrated Natural Capital Assessment (INCA), based on the automation of the calculation of the impact of infrastructures on biodiversity and ecosystem services.
The identification of nature-related risks is based on an assessment of dependencies and impacts on nature.
Biodiversity risk assessment follows Ferrovial’s risk identification and assessment process, called Ferrovial Risk Management (FRM), managed by the Compliance and Risk department, promoted by the Management Committee and implemented in all the company’s business units, under the periodic supervision of the Audit and Control Committee of the Board of Directors.
Through the application of common metrics, the process allows us to identify risk events in advance and assess them in terms of their probability of occurrence and their potential impact on business objectives, including corporate reputation. The identification of the R&O is done twice a year in a bottom-up manner from contract/asset to company/corporate level.
Furthermore, Ferrovial has developed a methodology & tool to analyze and assess physical climate-related risks (ADAPTARE), which includes nature-related risks.
In line with this approach, the company is addressing the implementation of risk mitigation management.
As for the opportunities, Ferrovial has been positioning itself for years as a company that offers infrastructure and focuses on new business opportunities that enhance nature conservation such as water treatment utilities. We have also developed methodologies and tools, INCA and ADAPTARE, in order to offer better solutions to our clients to boost biodiversity and ecosystem conservation.
Ferrovial invests in these new opportunities and nature-based solutions to fight against the degradation of ecosystems and natural capital that could entail operational, economic and reputational risks for the development of business activities.