The natural capital protocol

This is a comprehensive guide for businesses to measure, value, and integrate natural capital into their operations. The guide offers a step-by-step approach for businesses to assess material risks and opportunities associated with natural capital. Organisations are encouraged to reflect on why they want to conduct an assessment, how it will benefit their decision-making, and who would be involved.

Frame stage: Why?

The report highlights why integrating natural capital into business operations is essential and how it can mitigate risks. It recommends aligning environmental, social, and governance (ESG) goals with the overall business objectives to foster sustainable economic growth.

Scope stage: What?

The report suggests defining the objective of the natural capital assessment and scoping the assessment to understand the boundaries of the assessment. It recommends identifying internal and external stakeholders that may be affected by the results to consult and involve from the assessment’s outset.

Measure and value stage: How?

The report presents various methods for measuring and valuing changes in natural capital, depending on the assessment’s objective and scope. It suggests quantifying the benefits and costs of natural capital impacts and dependencies and then selecting appropriate valuation techniques to estimate the value of natural capital.

Apply stage: What next?

The report recommends validating and verifying the assessment to ensure the credibility of the process and results. It suggests taking action and acting upon the results to integrate natural capital into how businesses operate in the longer term.