Organisations can achieve significant financial and environmental wins when they put nature on the balance sheet.
For example, SLB, a French forestry company, saw a 60% increase in Earnings Before Interest, Taxes, Depreciation and Amortization (EBDITA). In May 2023, they secured a €9.5 million financing package from the European Union’s Natural Capital Financing Facility (NCFF) to support forest preservation efforts. They also went on to secure cheaper capital from Banque de France by implementing natural capital accounting principles.
There are currently over 500 organizations committed to natural capital assessment through the Taskforce on Nature-related Financial Disclosures (TNFD). Together, they manage $17.7 trillion in assets.
What can organisations expect when they put nature on the balance sheet?
Putting nature on the balance sheet supports the:
- inclusion of nature risks and opportunities in financial accounts
- access to private sector financing for nature at scale, including for communities who manage landscapes
- design, implementation and scaling of novel financial and insurance products for nature
- transition towards nature-positive products and services
- inclusion of nature in prudential capital regulation and on central bank balance sheets.
What can organisations do?
The Capitals Coalition, together with a number of partners, has initiated the Nature on the Balance Sheet Initiative (NBI). A first activity has been the development of a roadmap to make balance sheet recognition of nature happen at scale. Organisations can engage with the NBI roadmap to:
- discover value based on trusted data
- quantify that value to business and society
- recognise value in financial accounts.
- Engage with the Nature on the Balance Sheet Initiative here.
Getting started with natural capital accounting is one of the important steps in the NBI roadmap.
IDEEA Group can help you on this journey to:
- understand how natural capital accounting fits with your vision and strategy
- build capacity at all levels of your organisation around what natural capital is, why it matters and how it can transform organisational sustainability
- measure your impacts and dependencies on nature, including the services and benefits you are securing for the future through investment in nature
- assess nature risk
- determine the outputs you need, such as reports, alignment with relevant legislation or funding submissions
- tell the world about the work you are doing for nature.
Connect with us to find out more about the natural capital journey and how we can help.