S&P Global Sustainable1Nature & Biodiversity Risk Dataset
Notice of Methodology Enhancements
April 2024
The S&P Global Sustainable1 Nature & Biodiversity Risk dataset assesses nature-related impacts
and portfolio level. The dataset applies the Nature Risk Profile, a new methodology for analyzing
companies' impacts and dependencies on nature, launched by S&P Global Sustainable1 and the UN
Environment Programme (UNEP) in January 2023.
The Nature & Biodiversity Risk dataset supports companies, investors, and entities as they seek tounderstand, manage, and mitigate exposure of corporates and portfolios to nature-related risks andimpacts. The dataset is in line with the Taskforce on Nature-related Financial Disclosures (TNFD)
LEAP approach and can be leveraged by market participants for more transparent alignment with theTNFD recommendations.
The dataset is updated annually, and this process includes an update to all asset level data andcompany reference information included in the dataset methodology, and a series of methodology
enhancements that improve the quality of the nature risk assessment offered in the dataset. This
notice describes the methodology enhancements that are currently under review and that S&P Global
Sustainable1 intends to incorporate in Q3 2024, which we expect to release in September 2024. The
methodology updates contained in this notice are under currently review and may be subject tochange. The purpose of this notification is to ensure we maintain transparency in our methodologicalprocess and decisions with the market. The full release will be accompanied by a detailed
methodology report describing the data sources, methods and assumptions used in the analysis, anda release note describing the impact of the methodology changes on the dataset.
Methodology Enhancements under Review
The following table describes the methodology enhancements that are under review and being
considered for the Q3 2024 Nature & Biodiversity Risk release, the expected impact on the dataset,and the intended benefit of these enhancements for clients. The enhancements described below may
be subject to change and the related expected impact may also differ from what has been described
below as these updates are yet to be implemented and are under review.
Enhancement
Name

Enhancement Description

Client BenefitExpected Impact on Nature &Biodiversity Risk Dataset

Fluvial Flood
Resolution
Enhancement(from thePhysical RiskDataset)

Fluvial flood hazard resolution
will be increased to 1x1km
through the integration ofprojected 1-in-100 year flood
extent data sourced from the WRI
Aqueduct Floods dataset.

Higher resolution
analysis of fluvial
flood risks at asset
locations and insurrounding areas

Some assets previously
modelled as having exposure
to fluvial flood, but which arelocated distant from rivers orin high elevation locations,will no longer be modelled as
exposed to fluvial flood. Thiswill most likely result in
reduced flood and storm
protection relevant scores forthe affected assets.
Consequently, the relevance

Reducedoverestimation of
fluvial flood hazard
within high fluvial
hazard basins but athigh elevation
locations orlocations distantfrom rivers

score or some companies willbe reduced.
Flood and storm protection
relevant scores will accountfor one additional hazard.

Pluvial Flood
HazardModelling (fromthe PhysicalRisk Dataset)

Pluvial flood hazard modelling will
be added to the physical risk
dataset in the Q1 2024 release,which is an input into the Nature& Biodiversity model. Pluvial flood
hazard is modelled as theprojected frequency of the 1-in100 flood depth at approximately
25x25km resolution.

Expanded coverageof natural hazards.

Enhancementof KBA/PA
overlap metrics

Addition of new columns toprovide information on which KBA
and/or PA an asset is overlapping
with, as well as potential
additional data about each ofthem.

Increasedtransparency
provides moreactionable insights.

New output columns providing
additional information.

Enhancementof land / sea
boundaries

Increased granularity ofboundaries between land and sea
used in geospatial modelling.

Increased precisionof localization ofassets andinclusion/exclusionof relevant assets

Some assets that weredeemed in the sea / ocean
may now be included in theassessment.

Asset databaseenhancements

Inclusion of new asset types aspart of the annual asset database
update (eg. beef processingplants)

Coverage ofadditional asset
categories.

New asset categories maylead to marginally morecompanies being covered withasset-level information.

Alignment of hazard
coverage between
Nature &Biodiversity and thephysical riskdataset.

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