For businesses to be viable in the long term the ecosystems and resources they depend on must be maintained, yet when it comes to the natural environment we are seeing a rapid depletion of capital. Economic invisibility has been a major reason for the neglect of natural capital. The current business model creates signi cant environmental externalities that are not priced eg, damages from climate change, pollution, land conversion and depletion of natural resources. As a result, there is a growing case for understanding the dependencies business has on natural capital, the risks and opportunities associated with this relationship and their real value. Integrating natural capital in business decision making leads to better business decisions with the bene ts of greater resilience, improved security of supply and ultimately a sustainable business model. Valuing natural capital speci cally can improve business decisions on risk management, supply chain sourcing decisions, new markets/investments, saving costs, sustaining revenues and environmental performance.
One of the challenges at present is the lack of a harmonised framework for how to value natural capital and apply it in business decision making. This is what the Coalition’s Natural Capital Protocol project aims to do.
We have an open call for business, investors and wider interested stakeholders to participate and shape the future. By participating business and investor participants can gain an early mover understanding and practical application of natural capital valuation.
Download the report (pdf): Valuing Nature in Business Taking Stock