How TBC helped Aviva build a credible, repeatable approach to nature-related financial risk based on the LEAP approach

Aviva is a  leading insurance, wealth and retirement businesses, and one of a growing number of financial institutions recognising that nature loss is not just an environmental concern, but a financial one.

How TBC helped Aviva build a credible, repeatable approach to understanding nature-related financial risk, and the capability to act on it.

Aviva sought to build a robust, repeatable approach that could identify where nature is financially material across a complex global portfolio and translate that into action across its investments, insurance and operations.

The approach needed to not only work at scale, but overcome data constraints and apply a rigorous approach that delivered insights across the business.

To achieve this, TBC was engaged to deliver a Group-wide nature-related dependencies, impacts, risks and opportunities (DIRO) assessment, aligned with the Taskforce on Nature-related Financial Disclosures (TNFD) LEAP Approach. 

 

The challenge: assessing nature-related DIRO across a complex global financial institution

Two core challenges shaped this work: 

1. Scale and complexity – Aviva’s exposures span investments, underwriting, claims and operations across sectors and geographies, making consistent assessment difficult.
2. Data and methodological constraints – Limited availability of location-specific and value chain data creates uncertainty, while overly detailed analysis risks being resource-intensive and impractical. 

 The goal was a balanced approach: rigorous enough to identify what is financially material, pragmatic enough to work at scale.

 

Our method: applying TNFD’s LEAP Approach through a ‘funnel’ methodology

TBC designed and delivered a structured, multi-stage assessment aligned with TNFD’s LEAP approach – Locate, Evaluate, Assess and Prepare – to progressively focus analytical and practical effort where it matters most.

1. Portfolio-level screening 

A Group-wide screening assessed nature-related dependencies and impacts across Aviva’s investments, insurance portfolios and operations. 

• Identified sectors with high dependencies and high impacts
• Prioritised key sectors for further analysis or action based on dependencies, impacts and financial exposure 

This stage provided information for reporting and priorities for further analysis. 

 

2. Location-based analysis 

For priority sectors and assets, the assessment incorporated site-level location data, and overlaid it with nature datasets representing, e.g. biodiversity importance or water stress. 

• Identified specific assets with significant potential nature dependencies and impacts
• Highlighted how risk exposure varies significantly by geography and ecosystem condition 

This enabled a shift from sector-level averages to granular, decision-relevant insights.

 

3. Scenario-based financial analysis 

For selected high-priority exposures, micro-level scenarios were developed to assess financial risks and opportunities in key sectors and geographies. 

Scenarios were constructed to assess loss or gain in company earnings under specific nature-related scenarios applying to physical portfolio company assets, using an evidence-based modelling approach. 

This enables insights around nature-related risks and opportunity to be quantified and incorporated into financial decision-making.

 

4. Embedding and capacity building 

Across the project, there was an overriding focus on embedding the methodology and insights across Aviva: 

• A replicable, auditable framework for future internal assessments
• Capacity-building sessions across investments, insurance and operations
• Outputs aligned with TNFD, ISSB and CSRD reporting needs

 

Outcome: enabling informed action and advancing Aviva’s nature strategy

The 2025 DIRO assessment delivered both immediate insights and long-term capability, giving Aviva a clear, evidenced view of where nature-related risks are financially material, a credible path to acting on them and a roadmap for expanding future assessments. 

Specific outcomes include: 

• A quantified view of financial exposure to sectors with high nature dependencies and impacts
• Decision-useful insights that have already supported engagement activity, product development and financial decision-making
• A scalable 'funnel' methodology that provides a consistent process for future assessments, a strong audit trail for disclosure, and the flexibility to expand as data availability improves
• Outputs directly informing the formalisation of Aviva's Group nature strategy, the development of nature risk appetite, and TNFD-aligned disclosures