The method distinguishes between land occupation (ongoing use preventing natural regeneration) and land transformation (conversion including recovery over time). Occupation impacts are expressed in PDF/m², while transformation impacts are measured in PDF·yr/m² to account for regeneration time. Assessments are conducted at the terrestrial ecoregion level, the native spatial scale for biodiversity modelling. Characterization factors differentiate five taxonomic groups: vascular plants, amphibians, birds, mammals, and reptiles. Impacts vary across land use categories (cropland, pasture, plantation, managed forest, urban) and intensity levels (minimal, light, intense). The model compares a hypothetical natural reference state with the current global land use configuration. Biodiversity loss is calculated using a species–habitat relationship that incorporates both habitat loss and fragmentation via the Equivalent Connected Area (ECA). Regional impacts are converted to global impacts using global extinction probabilities (GEP). To support LCA databases, LC-IMPACT applies the ReCiPe2016 logic for transformation flows and sets occupation impacts of natural land types to zero.