Objectives of the report

The report aims to provide practical steps for businesses of all sizes to start accounting for nature. It provides a snapshot of Natural Capital Accounting (NCA) approaches in New Zealand and compares them with the emerging dominant international framework. The document is intended for business leaders, investors, and policymakers to understand how nature-related information can be incorporated into decision-making. The methodology involved primary research through interviews for case studies and use cases, alongside secondary research and a peer review by the IDEEA Group regarding the application of the SEEA EA framework.

Executive summary

New Zealand’s economic activity is deeply anchored in its natural capital base. While the majority of exports rely on natural resources, the condition of these assets is not consistently priced by financial markets. NCA helps translate nature-related dependencies and risks into information that can inform investment, lending, and management decisions. Key findings suggest that defining the objective is the vital first step, and applying a materiality lens determines the business case. Spatial mapping is considered an indispensable input for identifying natural assets and assessment boundaries. Organisations that monitor their natural capital are better positioned to manage risks to future productivity and value creation.

Introduction

New Zealand is the world’s largest single-country exporter of dairy products, with the food and fibre sector accounting for 82% of exports, valued at NZ$64 billion as at June 2026. Approximately 33% of total bank lending was directed to sectors underpinning the country’s exports as at May 2026. Despite this, environmental externalities are often excluded from financial materiality assessments. The World Bank has modelled scenarios where the collapse of three ecosystem services resulted in annual GDP losses of approximately US$2.7 trillion. To address this, a consistent approach to measuring and reporting on the condition of natural capital is required to support financial stability and stress testing.

Case studies

The report highlights three New Zealand organisations applying NCA in practice. Lyttelton Port Company (LPC) undertook NCA to integrate nature-related considerations into business planning and respond to emerging disclosure expectations. LPC adopted a catchment-based approach, identifying marine and terrestrial assets. A key challenge was the difficulty of attributing ecosystem service impacts to a single organisation within complex ecological processes.

Pāmu developed portfolio-scale accounts to measure stocks and service flows for its farming and forestry operations. The initial valuation focused on five material services: grazed biomass, timber production, water supply, climate regulation, and habitat maintenance. Pāmu noted that while data availability was often patchy or outdated, the process improved visibility of assets supporting long-term value creation. Fletcher Living’s LowCO pilot aimed to radically reduce the carbon footprint of residential designs. The pilot homes were modelled to emit seven times less carbon over their lifetime than typical builds, and approximately 90% of construction waste was diverted from landfill.

Using natural capital information

Banks, investors, and insurers act as primary users of natural capital information. Banks view NCA as an indicator of management capability and preparedness for environmental change. In the future, this data could inform lending appetite and credit risk assessments. Investors use quantified disclosures to determine if nature-related issues are financially material, while insurers see nature as a modifier of conventional risk, an insured asset, or an exposure on the balance sheet. Challenges remain, as current data is often qualitative rather than directly embedded in lending decisions, and there is a lack of large, consistent datasets.

How to get started on natural capital accounting?

The System of Environmental-Economic Accounting – Ecosystem Accounting (SEEA EA) is the leading international framework, adopted by 98 countries as of 2025. In New Zealand, Stats NZ incorporates SEEA into national accounts, revealing that the marine economy contributed NZ$5.2 billion to GDP in 2023. The report outlines a 16-step process across eight connected phases to implement SEEA, starting with mobilisation and scope. This involves defining the decision-use case, selecting account modules, and establishing spatial boundaries. The process moves through extent and condition accounts to monetary valuation and integration into reporting systems.

Conclusion

More than four-fifths of New Zealand’s export earnings are linked to natural capital. NCA is emerging as a practical mechanism to close the information gap between environmental assets and financial decision-making. The report concludes that organisations do not need perfect data to begin the journey. By starting with available data, entities can improve their understanding of natural systems, strengthen economic resilience, and signal to the market that they are better positioned to manage nature-related risks and create long-term value.