Nature capital accounting tools comprise a very broad array of reporting frameworks, accounting methodologies, reporting standards, ecosystem services models, externality valuation methods, lifecycle analysis tools and certification systems. These help a business identify, quantify, model, map and value natural capital impacts, dependencies and assets to inform business decision-making and reporting and engage leaders on change. 

2 min read | Last updated 22 March 2021
Tool TypeToolDescription
FrameworksNatural Capital ProtocolA standardised framework for the identification and measurement of impacts and dependencies on natural capital
CDSB A framework for reporting environmental information with the same rigour as financial information, providing investors with decision-useful information from within the annual report
Accounting methodsEnvironmental profit and loss (EP&L)Involves defining, quantifying and valuing environmental and health impacts of business operations along the supply chain; pioneered by Puma, Kering and Philips
Triple bottom line (TBL)Expands the traditional accounting framework to include social and environmental impacts alongside financial (or economic) results
Corporate natural capital accounting (CNCA)A framework for organisations to account for the natural capital that they own and depend on, or for which they may be responsible
Revenue contribution to SDGs A methodology devised by bioscience company Chr Hansen that assesses every product in the portfolio against sustainability criteria mapped to the SDGs, thus apportioning revenues by product to the SDGs
Internal carbon priceAn internally developed estimated cost of carbon emissions as a useful approach to assessing and managing carbon-related risks and opportunities
Carbon adjusted EPSProfit is adjusted for the cost of carbon emissions across the business, including its supply chain (ie scopes 1, 2 and 3), pioneered by Danone (pdf)
Reporting standardsGRIReporting standards that help businesses communicate their impacts on environmental, social and economic issues that are material to their business
Disclosure system and rating mechanism for businesses managing environmental impacts within their own operations and in their supply chain; guides businesses toward best practice disclosure on climate, water and forests
GHG protocolRequirements and guidance for companies that are preparing a corporate-level GHG emissions inventory
Ecosystem services modelling ARIESNetworked software technology for mapping natural capital and managing ecosystems
LUCIAn ecosystem services modelling tool which illustrates the impacts of land use on various ecosystem services
SENCESoftware tool for evidence-based decision-making on natural capital and ecosystem services in a spatial context
Externality valuation methodsTrue ValueA proprietary methodology to quantify material externalities in dollar terms, developed by KPMG (pdf)
TIMMA proprietary framework to aid business decision making through comparative quantitative judgements of positive and negative impacts, developed by PwC
True PriceA total pricing concept that uses various methodologies for impact measurement and valuation to calculate the external costs throughout the supply chain
Economic ImpactMeasures the economic value added (wages, profits and taxes) and jobs (FTE) supported by an environmental asset, eg contribution of Great Barrier Reef to the Australian economy (Deloitte, 2017 (pdf))
TrucostProprietary methodologies for assessing business impact valuation, including data modelling where data is missing
Life Cycle Analysis toolsSimaProProprietary life cycle assessment software
openLCAOpen source, free software for sustainability and life cycle assessment
CertificationForest Stewardship Council (FSC)Principles for responsible forest management
Marine Stewardship Council (MSC)Wild-capture fisheries certification and ecolabelling program
Roundtable on Sustainable Palm Oil (RSPO)Global standards for producing sustainable palm oil
Green StarRating system for a building or fitout’s overall environmental impact
ISCAEvaluates the governance, economic, environmental and social sustainability performance of infrastructure development

Source: based on Royle and Anderson, 2016 (pdf)