But climate change is not the only global environmental threat that demands attention. Scientists widely agree that loss of wildlife and the natural environment is an equally urgent crisis. Some argue that biodiversity loss threatens to become Earth’s sixth mass extinction. But unlike efforts to fight climate change – which center on clear, measurable goals to reduce greenhouse gas emissions – there is no globally accepted metric for saving biodiversity.
As an expert on budgeting and public finance, I know that governments and private businesses alike pay much more attention to resources when they have a well-defined price tag. I believe that overhauling society’s concept of wealth to include “natural capital” – the value nature provides to humans – is a critical step for slowing and reversing the loss of precious ecosytems.
People and Planet in the Accounts Convergence of non-financial frameworks and standards is gaining momentum and we are beginning to see how nature and society might be included in the financial statements. But can these frameworks tolerate such change? In these articles we explore this from the perspectives of different actors in the debate. 27-11-2020
30 November 2020: Clara Barby is Chief Executive of the Impact Management Project – a forum for building global consensus on how to measure, manage and report impacts on sustainability. 27-11-2020
30 November 2020: Mardi McBrien is the Managing Director of the Climate Disclosure Standards Board. She says that when it comes to putting people and planet into the accounts, the moment of truth is still some way off but is fast approaching.
Corporate natural capital accounting – understanding challenges and pursuing standardization opportunities
Share
Geneva, Switzerland, 27 March
2021: Today, the World Business Council for Sustainable Development (WBCSD), in collaboration with Valuing Nature, launches the Corporate natural capital accounting - from building blocks to a path for standardization report, as a contribution to the EU Life funded Transparent project.
To realize the ambition of a sustainable financial system and economy that allows for 9+ billion people living well, within planetary boundaries, by mid-century, we must understand how business impacts and depends upon nature, valuing natural capital in our decision-making. This report provides an overview of corporate natural capital accounting resources and applications, identifying best practices, challenges and standardization opportunities.
By Gautam Mahajan and Philip Sugai
Try googling Value Washing. You get washing machines. Which is not what we mean by Value washing a term first used by co-author Prof. Philip Sugai of Doshisha University in Japan in his 2019 article for Campaign magazine.
The unfortunate reality is that we have gotten used to value washing. Many companies make statements they do not follow such as we are customer friendly, we are customer centric, the customer comes first, and we are environmentally friendly. These words are meant to give a warm fuzzy feeling, but fail to actually improve the situation for their customers.
Shutterstock
Close Authorship
As corporate sustainability goes mainstream, ESG reporting is being embraced beyond early adopters exuding good citizenship. Investors, markets and regulators are picking up on the value of environmental, social and governance data, which is being integrated more often into financial disclosures. People have realized that sustainability disclosure and sustainability information has significant value, said Janine Guillot, CEO of the standards-setter SASB (Sustainability Accounting Standards Board).
Soon, more companies will be forced to divulge environmental and social data, whether due to new laws and regulations, investor demands or simply to remain relevant and competitive, experts shared at the GreenFin 21 virtual event Tuesday.