The case study database provides an overview of capitals assessments that have been carried out by organizations in the capitals community. Assessments are categorized and can be filtered using the ‘filter by’ and the search functions.
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Holcim – Nature Positive Strategy 2030
DetailsHolcim are a global leader in sustainable building solutions, by helping enable greener cities, smarter infrastructure and improving living standards around the world. They work with trusted names in the building sector including ACC, Aggregate Industries, Ambuja Cement, Dinsena, Firestone Building Products, Geocycle, and Lafarge.
Holcim have recently launched a Natura Positive Strategy, that establishes targets for biodiversity, water and bringing nature into cities up to 2030. Holcim’s positive impact on biodiversity is based on transformative rehabilitation plans and measured by a science-based methodology developed in partnership with the International Union for Conservation of Nature (IUCN). The Strategy will build on the net zero commitment and Holcim recognise that nature-based solutions play a vital role in reducing the impact of climate change. In particular the strategy focuses on biodiversity and water.
Holcim committed to making a measurable positive impact on biodiversity, backed by science based indicators. They will work in partnership with local stakeholders who understand the local ecosystem, ensuring a positive contribution to biodiversity. Whilst also taking account of the communities who rely on nature for their livelihoods and quality of life.
OutcomeIn the strategy Holcim commits to: Delivering a measurable positive impact on biodiversity by 2030 based on the Biodiversity Indicator Reporting System (BIRS) developed in partnership with IUCN, with: Global BIRS baseline completed in all managed land by 2024 and all quarries to have rehabilitation plans by 2022. Replenishing freshwater in water-risk areas by 2030, with: 75% of sites to be water-positive, 100% of sites to be equipped with water recycling systems. Lowering water intensity across business lines by 2030, with: 33% reduction in Cement, 20% reduction in Aggregates and 15% reduction in Ready-Mix Concrete. Holcim will continue to develop and implement the nature-based approach across all it’s products and solutions.
Natura – Integrated Profit & Loss Accounting 2021
DetailsNatura is the largest Brazilian multinational in the cosmetics sector, with a worldwide presence founded in 1969. In this report, Natura wanted to establish new ways of accounting for value and measuring a financial impact on the world and society. The Natural Capital Protocol and Human and Social Capital Protocol helped lay the foundation for these waves of change, within Natura. By creating a framework called the IP&L (Integrated Profit & Loss), Natura were able to measure in combination, impacts pathways on society and financial. Natura realised that the accounting system within the company was focused on financial issues, and was missing a huge part of the economic system value – its dependency on people and natural resources. Reforming the way Natura accounted for value became the foundation of sustainable transition and will guide businesses willing to adapt and thrive.
The activities covered reflect the Natura value chain, from its supply chain and extractive communities in the Amazon region, to its direct operations (manufacturing and offices), the Natura consultants (sales activities), to the products used and product end of life. The IP&L also covered a carbon offsetting programme with carbon credits delivering various societal co-benefits in the Amazon region and Lation American countries.
OutcomeThe added value created by the IP&L is the provision of an exhaustive view of the societal value delivered by Natura across all capitals. By using a monetary valuation, a comparable, relevant and consistent monetized impact indicator, it allows greater capacity to relate to the results and compared them with financial information. The IP&L also is a true reflection on the sustainability of a company, reflecting both negative and positive contributions. Beyond the results themselves, the IP&L development process has added great value to Natura. Firstly it created collaboration between a wide range of stakeholders, as well as some external, and has helped with connections and networks. It has developed skills and knowledge on the topic of sustainability and impact valuation methods. Natura have also identified new concepts and benchmarks that will become very important for the future sustainability strategy, including for instance the concept of a living wage. In the short term, Natura are continuing to boost awareness, empowerment and training of employees in the IP&L since it is a new tool that has not been used previously. Through employee engagement, Natura are ensuring that priorities identified in the assessment are understood and indeed addressed by internal stakeholders. The influence of the IP&L on decision making at Natura will also require that performance management processes and governance be adapted to account for this new information. The comprehensive IP&L carried out by Natura is one of the first undertaken by a business. There is appreciation that it may take some time to standardize an approach before it’s wider deployment in the private sector. There is also recognition that this is an ongoing process, and results here may change in the near future when further progress has been made within the sector and Natura.
TEEBAgriFood: Liv Up – Benefits of a short supply chain with smallholder farmers
DetailsLiv Up is building a fair, sustainable food system that respects the environment, through three pillars: Origin, Communities and Future. Since 2016, Liv Up identified that the younger generation of people lacked time and dedication to cook. This concept became the catalyst of creating a new way of living and eating in a way that was practical, healthy and tasty too.
Liv Up have cultivated a relationship of trust and partnership between stakeholders, especially the suppliers and clients at both ends of the production chain.
The case study assessed the magnitude of the impacts of organic farming and ‘dedicated planting’. To value the capitals involved in short supply chains with smallholder farmers.
How will the business measure and value impacts and/or dependencies?
Liv Up used Quantitative measurements to assess financial gains such as planting planning and organic supply guarantee. Qualitative measurements such as surveys and internal data helped analyse social impacts such as life quality improvements, from before and after partnership with Liv Up. As well as, Socio-financial stability and benefits of organic farming.
OutcomeThe next steps to the assessment were as follows: Communicate impact generated to stakeholders. Apply framework to other parts of the value chain (including comparing and contrasting benefits of buying at Liv Up instead of a conventional supermarket). Measure soil health development, before and after using fertilizers. Measure productivity before and after organic planting. Measure decreased food waste due to dedicated planting.
Natural CapitalSocial and Human Capital
TEEBAgriFood: BANORTE – Quantifying finance and the Capitals
DetailsGFNorte (part of BANORTE) offers products and services through it’s brokerage firm such as; pensions and insurance companies, investment funds and leasing/factoring companies and warehouses. BANORTE is the second largest financial group in Mexico, becoming the number one provider of loans to governments and second highest in mortgage loans.
The reason for the assessment was to quantify financial risks derived from natural, human & social and produced capital. Therefore, being able to mitigate financial risks derived from exposure to environmental and social risks. As well as improve training on the importance of natural, human & social and produced capital and involving clients more.
The assessment looked at impacts and dependencies using qualitative, quantitative and monetary valuation techniques. The dependency on water availability was assessed, as well as the impacts of soil quality, agrochemical usage and the impact on land use. Workers health and safety and the exposure to fertilizers were also taken into consideration.
OutcomeThe evaluation and results of the assessment made it possible to quantify the potential of BANORTE’s agricultural portfolio, to be able to offer financial products or services that benefit clients that incorporate the best sustainability practises. The agricultural portfolio was the main focus of the assessment, and looked at material impacts and dependencies on natural, human & social and produced capital. As part of BANORTE’s Social and Environmental Risk Management, the business will emphasize the incorporation of specific criteria associated with multi-capitals within the social and environmental due diligence of clients. These cover: > Legal compliance: current land use authorization > Water: use of efficient technology for the use of water > Fertilizers: use of organic products, or products with minimal environmental impact > Working conditions: hiring policies, benefits and safety practises.
Natural CapitalSocial and Human Capital
TEEBAgriFood: APEAM – Assessing risks, Opportunities and Impacts on stakeholders
DetailsAPEAM is a Mexican civil association in the food industry, focusing on avocado growing, packaging and exporting. APEAM decided to work on a project related to environmental assessments and planning of sustainability targets and strategy. The assessment looked at evaluating natural resources, such as the state of forest, biodiversity, water and soil conservation in the avocado region of Mexico, to create the best agricultural practises. By doing the assessment, APEAM were able to assess value perspective of business and society, whilst considering impacts and dependencies.
OutcomeNatural capital outcomes: The outcome of the assessment decided that there would be a benefit for both business and society in the establishment of forest reserves in the region of Mexico. It was decided in order to preserve these ecosystem and current climate conditions needed, that the avocado growers will finance this. It was recognised that the high standards of water management need to be maintained in order to conserve as much as possible. The soil and land conservation needs to be maintained, and keep soil free of pesticides and fertilizers. Social/Human capital outcomes: The outcome of the assessment reflected that living standards for workers and employers in the area should be improved. To maintain health of workers, and to do so the high level standard of training regarding usage of agrichemicals should be maintained. This is important as the soil and water should be protected against agrochemicals. Recently, by putting the findings of the assessment into action, the water aquifers in the avocado zone have had no water pollution due to agrochemicals. The social strategy indicates a poverty reduction due to permanent jobs for young people in the production line. Lastly APEAM are now working proactively to analyze water conservation practises and efficient uses of irrigation systems to make the avocado belt more sustainable.
Natural CapitalSocial and Human Capital
TEEBAgriFood: Arvind – Valuing Water Impacts for Cotton
DetailsEstablished over 90 years ago, Arvind Ltd is the flagship company of the Lalbhai Group, one of the largest textiles manufacturing and exporters in India. There are production units based in India and Ethiopia to produce quality textiles for the global fabric market.
A key raw material that is important to Arvind is cotton, as it accounts for 80% of all products. Therefore, securing an uninterrupted supply of cotton is therefore a concern of Arvind, due to climate changes, increase in drought, erratic rainfall. This dependency on cotton has led Arvind to focus on the sustainability of this key material, the supply and reducing negative environmental impacts caused during the production phase. This was done by firstly sourcing cotton from farmers who were a part of the Better Cotton Initiative (BCI) that led to continuous engagement to improve traceability across the value chain.
The assessment looked at the cost of water per kg of seed cotton produced under BCI principles and compared this to conventional practises. The scope focused on upstream natural and human capital impacts in cotton projects in Gujarat, India.
A materiality assessment using criteria of risks and opportunities known to Arvind showed three impact drivers:
> Water use
> Pesticide, herbicide and fertilizer use
> Salaries and benefits
However for this assessment, Arvind decided to focus on water use only and plan to carry out valuations for the remaining two drivers at a later date.
OutcomeOverall, Arvind was able to conclude that BCI practises have positive environmental and social implications compared to ‘conventional’ cotton practises. Due to the large dependency on this raw material, the assessment developed the business’ understanding of their dependence on ecosystem services. As well as a previously unrecognized risk to both business and society. The assessment provided a more holistic picture of Arvind’s portfolio, and justification for more sustainable practises. Moving forward, Arvind will instil the Capitals Approach into the sourcing strategy, and use the TEEBAgrifood Evaluation Framework to explore and deepen their understanding from other impact drivers and dependencies. Since this assessment was limited to water only Arvind will look into other impacts and dependencies such as pesticide use, workforce, soil health, emissions reduction and how resources are circulated.
Coca Cola – Creating Natural Capital through nature-based solutions: 2022 Progress Report
Details“Water is essential to human life, to the health of our ecosystem and economies, and yet it is under increasing stress due to rising demand and the effect of climate change.”
Coca Cola are the world’s largest beverage company. One of their highly valued sustainable business priorities was water stewardship and in 2007 the company made a global commitment to replenish all the water used in their direct products. Since this commitment, the company has 300 water replenishment programs worldwide which include managing water in the operations and supply chain.
Coca Cola produced the ‘How to create Natural Capital through Nature-Based solutions’ and this year they released a progress report. As previously mentioned, there were 7 pilot schemes that took part in the initial report. In this progress report Coca Cola gained insight into the key achievements of each project, as they cover themes such as water quality, water replenishment, groundwater recharge, carbon sequestration and wetland restoration. Coca Cola wanted to explore projects that could provide climate benefits which could be explored further.
The Water Replenishment Programme has been implemented to gain insight into water security, and how Coca Cola can be proactive in operations across the value chain and watersheds worldwide to support water security. They started by measuring ecosystem services benefits of water replenishment projects, which can have a big impact but be challenging in practise. Coca Cola realised the difficulty in economic valuation on a natural capital resource and that comparing results from different projects is difficult without a unified method. By using the Natural Capital Protocol as a framework for developing such guidance that is intended to be used by all project partners when reporting on water replenishment achievements.
OutcomeOne of the key learnings from the report was in regards to good data gathering. When developing a methodology for a different projects for the biggest beverage company in the world, having good project implementation partners, clear data and structured approaches cannot be understated or undervalued. Having the knowledge of what data needs were required from the outset, meant that screening of potential benefits could begin at the planning stage. The results support findings from previous assessments, but allowed Coca Cola to gain deeper insight into a multitude of benefits that water replenishment projects can bring. Water quantity benefits are again the most significant out of all assessed ecosystem services. In this evaluation, they noted that results are not as substantial as the previous year. Due to the pilot cases being in less water-stressed areas. Overall Coca Cola released benefits from different types of projects and ecosystem services. Next steps: Coca Cola will continue testing the methodology across different projects globally, and will make it publicly accessible by developing a dedicated toolkit for its implementation. There will be an implementation criteria for carbon sequestration for new water replenishment projects, there will also be pilot projects verification for carbon credits to experience process, complexity and outcomes.
Natural CapitalSocial and Human CapitalIntegrated Capitals
Global Green Growth Institute – Climate resilient agriculture in the Aral Sea region
DetailsClimate change risks, water stress and the continuous degradation of the Aral Sea have made the agriculture sector in the Aral Sea region the most sensitive and vulnerable among all economic sectors. Consequently, the implementation of adaptation measures has become highly relevant in mitigating the adverse effects of temperature increases, water stress, and the increased frequency and severity of salt and dust storms, while simultaneously securing economic growth, food security, and environmental sustainability. Within the scope of the Green Rehabilitation Investment Project for Karakalpakstan Republic to address impacts of the Aral Sea crisis funded by KOICA (Korea International Cooperation Agency), and following government priorities for the implementation of infrastructure adaptation measures for the agriculture sector in Karakalpakstan, the Green Recovery Investment Analysis sets a precedent in providing an evidence-based assessment for implementing drip irrigation systems, moving crops to greenhouses and planting trees for windbreaks. To bridge the conventional division between food production and sustainable resource management, the 3Returns Framework and the Nature-Based Solutions Framework for Agricultural Landscapes have been used for concluding and recommending a combined implementation of infrastructure adaptation measures for government’s adaptation plans and development partners’ interventions in the region.
OutcomeProvide evidence that will support developing the Aral Sea Development Program and the consideration for the issuance of a Green Bond for funding the implementation of adaptation measures in the region.
ABN AMRO – Valuing impact on biodiversity
DetailsDuring stakeholder dialogues in 2017 and 2020, ABN Amro was tasked to explore a more quantitative assessment of its biodiversity impact. This report was developed alongside the bank’s participation in the Partnership for Biodiversity Accounting Financials (PBAF), and the Finance for Biodiversity Pledge.
“Biodiversity underpins human welfare and is one of the most important sustainability topics the world must improve on according to the World Economic Forum which has made it one of its key topics in the coming years.” CEO – Robert Swaak.
This study, carried out by ABN AMRO Bank looks closely into what biodiversity means for their business, how to increase public awareness and what impact biodiversity has on the business activities. The report highlights the business’ key drivers behind their impact on biodiversity, which is predominantly driven by land use and climate change.
ABN Amro’s biodiversity impact is assessed using the same drivers as their natural capital assessment; climate change, air pollution, water pollution, and land use. This impact is then translated into the equivalent of a loss of one hectare of pristine biodiversity.
OutcomeABN Amro calculated the differences in biodiversity impact between sectors and regions, split by impact driver. Furthermore, the report helped pinpoint if impacts were direct, or indirect via clients and suppliers. ABN Amro, with the Impact Institute, carried out monetary valuation of the impacts on biodiversity, related to value lost through ecosystem service loss. This allowed the bank to compare relative impact across sectors and regions. Among the sectors in which ABN Amro is active, the most impactful on biodiversity were cattle farming, business services, and shipping. The impact varied across direct impact from clients (e.g. environmental pollution from cattle farming), and indirect impact from clients and suppliers (e.g. energy use of data centers). The report highlights some small changes that ABN Amro has implemented such as their code of conduct with external suppliers and forest restoration. Externally, ABN Amro has financed Jumbo Supermarket’s new sustainable supermarket, focusing on building materials that reduce energy use, and reducing food waste. ABN Amro will use these results to explore more effective ways of reducing their negative biodiversity impacts and increasing their positive impacts. Monetary valuation of impact plays an important role for the bank in this process.
Ofi – Balance sheet approach to Natural Capital Accounting
DetailsLittle Blue Research produced a natural capital account for Olam Food Ingredients (ofi), a multi-national food and agri-business, to understand the natural capital impacts and dependencies of a specific crop business unit.
Technical support was provided to ofi by reviewing and updating current natural capital valuation methods and producing an updated Natural Capital Profit and Loss statement (NC P&L) and a pilot natural capital balance sheet. (NCBS).
OutcomeLittle Blue Research undertook a review of ofi’s NC P&L and provided recommendations for improvements to their existing methods of valuing natural capital impacts. A NC P&L and NCBS was produced for 2018 and 2019, following, where possible, the recently launched “BS 8632 natural capital accounting for organizations” standard to identify natural capital impacts and dependencies, and changes over time Valuation methods were developed or updated and a high-level list of risks, opportunities and recommendations based on the outputs of the NC P&L and NCBS for 2018 and 2019 was produced. ofi used the NC P&L and NCBS developed for 2018 and 2019 to develop and publish natural capital accounts for 2020. They are using the outputs to aid their decision making on various matters such as carbon emissions mitigation and adaption strategies. ofi will continue to develop and refine natural capital valuation methodologies overtime and scale them for use in the development of other natural capital accounts for different commodities. ofi will also seek to embed the use of the NC P&L and NCBS throughout the organisation, especially within the finance function.
SEBIG – Impact measurement of the North American trade show industry
DetailsLittle Blue Research assisted SEBIG, a collaboration of organisations from across the North American exhibitions industry value chain, in advancing environmental best practice and conducting a sector-wide materiality assessment.
The research project used an iterative methodology to:
– Understand and measure the industry’s collective environmental impact;
– Quantify the most important environmental impacts overall and by event/show life-cycle stage;
– Pinpoint gaps in data or capability essential to decision making and industry-wide action;
– Develop a framework for strategic short and longer-term actions for collective engagement at scale; and
– Generate messaging to unite and engage industry stakeholders.
OutcomeLittle Blue Research developed models to quantify environmental impacts including: – Visitor transport GHG emissions; – Venue energy use GHG emissions; – Logistics GHG emissions; – Venue waste (including methods for food and plastic); – Depot waste; and – Booth construction materials. The material environmental issues were identified across the life-cycle of B2B trade shows. From this a prioritised list of short- and longer-term actions was developed for the industry to take forward. Detailed stakeholder mapping was undertaken and data obtained across the value chain for the trade show sector, identifying data and knowledge gaps that currently existed for SEBIG. SEBIG is planning to release a public report focusing on the findings of the study and suggest next steps for the industry to take forward. The findings of the study will also support other initiatives, such as the recently announced Net Zero Events Initiative launched at COP26.
Marilles Foundation – Natural Capital Accounting in a Marine Protected Area, Mallorca
DetailsDespite the enormous contribution that marine reserves and protected areas make to the prosperity and well-being of residents and visitors to the Balearic archipelago, their value often goes unnoticed. In order to make visible its importance and how profitable it is to bet on their conservation so that the benefits they generate can be sustained in the future, a pilot project promoted by the Marilles Foundation and developed in collaboration with Ecoacsa, the Balearic Centre for Applied Biology (CBBA) and the British company Eftec has generated a marine natural capital accounting system for the Marine Protected Area (MPA) of Llevant (Mallorca) that allows the economic benefit, that the services provided by marine ecosystems contribute to the blue economy, to be known.
The application of this accounting framework has allowed knowing and accounting for the economic value of the biodiversity and marine ecosystems of the Llevant MPA, as well as the relationship between these, the economy and the well-being of the residents who live and work in the area, along with the tourists who visit its coasts and enjoy its sea.
To facilitate the replication of similar studies, a methodological guide has been developed for the application of natural capital accounting in marine protected areas.
OutcomeThe application of the marine natural capital accounting system developed reveals that each euro invested per year in the Llevant marine reserve of fishing interest in Mallorca generates 10 euros of profit. While the annual maintenance cost of natural capital assets is € 473,137 the economic benefits they bring amount to around € 5 million (€ 4,826,518), representing a total of € 1174 / acre / year. Of this amount, cultural ecosystem services related to recreational activities (diving, excursions, boat trips, beach tourism, attending local celebrations) are the ones that have the greatest weight in the blue economy of the region, with € 3,141,440 per year (65% of the total). Then, at a considerable distance, cultural ecosystem services are followed by regulatory services such as coastal erosion control, which contributes annually with € 772,547 (16%) and the maintenance of biodiversity (€ 447,313, 9%). Net Present Value of future benefits within a horizon of 60 years exceeds € 126 million. The cumulative value of the benefits generated by the ES over the next 60 years would exceed € 126 million if the MPA were to be maintained in its current or improved conservation status. The cost of maintaining habitats, water bodies and species (natural assets) represents only 9.90% of this amount (€ 12.48 million). The difference between these two concepts results in the net benefits provided by the marine ecosystems of the Llevant Marine Protected Area amounting to just over € 114 million.
Natural CapitalSocial and Human CapitalIntegrated Capitals
Unilever & Global Green Growth Institute – Nipa palm sugar production
DetailsResults from the pre-feasibility study for developing a net-zero carbon emissions nipa palm sugar production and processing value chain in the Ayeyarwady Delta, Myanmar, following a capitals approach through the use of the 3Returns Framework.
OutcomeReach a decision regarding the most sustainable model for nipa palm sugar production and processing based on the regionally available resources and the impacts from a business and landscape perspective. This study demonstrates the value of developing partnerships between the private sector and other actors to ensure that investments in new food value chains are aligned with the global consensus of the urgency to take action to combat climate change, protect biodiversity, and ensure fair incomes for farmers. With support from Zawgyi Premier.
Bankinter – Connecting finance and natural capital
DetailsBankinter wanted to understand which investment sectors have the greatest impacts and dependencies on natural capital and determine what level of investment would be needed to reduce or manage them. Bankinter implemented the Natural Capital Protocol Financial Sector Supplement guide.
OutcomeIt was identified that many departments were already working on common goals without a centralized process, leading to misunderstandings. This assessment indicates that wholesale trade, transport, other construction activities and real estate have the highest impact and dependencies on natural capital, which are sectors that Bankinter is investing in most. It has been highlighted that more information is needed for an in-depth finance project assessment. Bankinter will use natural capital assessments again in the future, and continue to focus on quantitative methodologies .
Australian Commonwealth – Improving farm gate profits through natural capital accounts
DetailsThis study, carried out by the Australian Commonwealth Scientific Industrial Research Organization explored whether best practice natural capital management in agricultural businesses can drive profitability through: verifiable environmental credentials and improved access to premium products; access to discounted finance, and improved access to emerging environmental markets. Case studies in cotton, forestry, and fisheries were developed. The main outcome they were seeking was an improved understanding of the relationship between the condition of the underpinning natural capital assets and the profitability and sustainability of primary enterprises.
OutcomeThe assessment is ongoing however CSIRO are engaging with industry partners in focus sectors to increase their awareness of industry interactions with natural capital and its effects on enterprise profitability. They are using the Natural Capital Protocol as a basis for developing a conceptual model of natural capital opportunities for the sector, the dependencies and risks associated with the business operations and to identify key ecosystem processes that drive the delivery of the provisioning, regulating and cultural ecosystem services associated with each industry sector.
ASN Bank – Connecting finance and natural capital
DetailsIn 2016 the ASN Bank formulated a long term goal for biodiversity: a positive effect on biodiversity in 2030 with all investments made by the bank.
The challenge was to develop a methodology, which measures the bank’s impact on biodiversity. Since rarely any financial institutions globally have well-developed methodologies, ASN decided to develop a novel methodology to determine the biodiversity footprint of all its activities (over its total balance sheet). Together with consultants CREM and PRé Sustainability it calculated the impact of all its investments on biodiversity. They performed the first measurement using 2014 figures.
ASN Bank and ACTIAM have also taken the initiative to start the ‘Platform Biodiversity Accounting Financials’ (PBAF), a bottom-up, open source initiative to develop, together with financial institutions, a methodology for biodiversity footprinting by financial institutions. PBAF has now grown to many trillions under management globally.
OutcomeUsing the novel methodology, the overall result of ASN’s impact for the year 2016 was an area of 66.154 ha which lost all of its biodiversity. This is an indicator that has been developed for the methodology. Please note that this area of lost biodiversity is stable as ASN Bank’s portfolio stays constant. It does not mean that each year an area of that size is being added to the damage. Throughout development of the methodology ASN came to the conclusion that more, and better, data is needed for biodiversity foot printing. It is crucial that external databases that collect information on biodiversity are further developed, i.e. Globio, Exiobase and others. Similarly to CO2 measurement, the financial sector needs more and better biodiversity data on company level to identify risks and opportunities regarding biodiversity.
Arla Foods – Environmental profit and loss accounting
DetailsTo document the total life cycle environmental impact of their product portfolio, Arla Foods conducted an Environmental Profit and Loss Account (EP&L). The EP&L expresses Arla Foods’ environmental impacts in monetary units, in addition to the underlying physical units. Arla Foods used the results to evaluate their environmental strategy 2020 in order to assure that its focus was put on priority areas.
In order to calculate the life cycle emissions, life cycle assessment (LCA) is used. Results are presented at mid-point, e.g. global warming, respiratory effects, nature occupation (biodiversity), and endpoint, for example impacts on human health, ecosystems and resources in monetary units.
OutcomeBy using the Stepwise method for valuation, global Warming (CO2, CH4, N2O), respiratory inorganics (air emissions: particles, ammonia, NOx, SO2), and nature occupation (biodiversity), were identified as the most significant. The attributional results showed that terrestrial eutrophication were also important (though less than global warming and respiratory inorganics). Besides using the Stepwise method for valuation, this is also carried out by using the recommended guidelines by the Danish EPA and the method developed by Trucost, which was used in previous studies published by the Danish EPA. This Environmental Profit and Loss Account (EP&L) was one of the first of its kind for the food sector. The results are calculated based on comprehensive data collection and life cycle assessments. The results show that both the value (Profit) and the impacts (Loss) of Arla Foods production and subsequent distribution and consumption of their products are high. The EP&L account gives a broad and deep insight in the impacts from the full life cycle of Arla Foods product portfolio and the underlying contributions. Hence, it provides a good basis for more comprehensive sustainability reporting and for identifying options for improving the performance and reducing the impact.
Natural CapitalSocial and Human Capital
Argos – Application of true value methodology
DetailsUsing KPMG’s True Value methodology, Argos developed their Value Added Statement to understand their impacts across their direct operations.
OutcomeArgos found that impacts derived from GHG emissions represent the highest societal cost, accounting for 78% of the company’s total cost from environmental externalities in 2017. By using alternative materials and fuels as a strategy for climate change mitigation, Argos could prevent up to 11.7% of societal costs related to GHG emissions in 2017. In 2017, we calculated a net value added to society of USD $ 804.3 million, 4.73 times our retained benefit. Operational environmental effects accounted for a net cost to society of USD $345.4 million in 2017.
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