Introduction

This paper explores the emancipatory potential of biodiversity accounting and reporting by examining how listed companies in the United Kingdom and South Africa engage with biodiversity-related information in their corporate reports. Developing such practices is challenging as biodiversity is complex and difficult to measure. A principles-based framework is developed to capture how organisations understand biodiversity and whether this is reflected in practices that support material organisational change.

The emancipatory potential of biodiversity reporting

Accounting is a socially constructed process that can problematise environmental issues and challenge hegemonic positions. Realising emancipatory potential does not require radical social or economic reorganisation; existing methods of record-keeping, analysis, and reporting can be adopted according to the context to widen accountability within capital markets.

Operationalising emancipatory accounting

Operationalising this form of accounting includes providing species- and ecosystem-related information to establish shared understanding. Organisations articulate the case for conservation on economic, ecological, and moral grounds. Effective implementation requires appropriate management systems, internal controls, and lines of accountability to track progress against objectives.

Interrelated dimensions of an emancipatory framework for biodiversity accounting and reporting

The performative reporting envisioned requires robust systems capable of integrating biodiversity data into decision-making. Four interrelated dimensions are examined: the identification and measurement of the unit of account; biodiversity-related performance; materiality determination and reporting practices; and biodiversity governance and assurance.

Final model

The final model combines context and scene-setting into a single element: the rationale for incorporating biodiversity into the organisation’s business model and internal management. Performance is assessed using financial and extra-financial measures, reflecting the capacity to operate within existing economic paradigms.

A brief review of the state of South Africa’s and the UK’s biodiversity

South Africa is home to approximately 95,000 species, with biodiversity contributing up to 10% of the country’s gross domestic product. However, up to 60% of plant and animal species are threatened. The UK has experienced a 19% decline in wildlife since the 1970s, with one in six species threatened with extinction. UK public sector funding on biodiversity accounted for less than 0.5% of the country’s GDP.

Method

The study adopts an interpretive approach, using qualitative content analysis to examine the top 50 companies listed on the Johannesburg Stock Exchange and London Stock Exchange between 2018 and 2022. Disclosures were scored on a three-point scale, where a score of “1” represents vague disclosures and “3” represents detailed, site-specific, and quantified information.

Results and discussion

From 2020, South African (Δ = 27%) and UK (Δ = 39%) companies significantly increased reporting on biodiversity-related disclosures. Some disclosures indicate weak-form emancipatory accounting characterised by policy-level reporting, while others point to a transformative orientation with action-oriented, context-specific reporting.

Rationale for reporting

Companies are paying increased attention to explicating the rationale for protecting biodiversity (ΔSA = 416%; ΔUK = 333%). While some detail prioritises compliance with reporting frameworks, other companies demonstrate a firm commitment to mitigate loss through scientifically based action plans and Specialist assessment of biotic resources.

Unit of account and biodiversity performance

There has been a substantial increase in the extent of reporting regarding units of account and performance (ΔSA = 60%; ΔUK = 333%). Stronger forms of reporting frame biodiversity as a direct source of risks and opportunities. Some firms use “nature-signalling numbers,” such as changes in species counts and land under conservation, to reinforce the rationale for action.

Reporting

Reporting intensity has increased (ΔSA = 13%; ΔUK = 161%), often attributed to the proliferation of reporting standards. Companies are refining materiality determination, with some adopting double assessment approaches to examine impacts on the environment and the financial value of the business concurrently.

Governance and assurance

Enhanced governance functions are gaining traction among South African and UK firms (ΔSA = 98%; ΔUK = 30%). This includes establishing Sustainability Committees and expanding audit and risk remits. External assurance is increasingly used to verify the reliability of biodiversity-related information and test internal controls.

Conclusion

Biodiversity accounting and reporting practices are best understood as lying on a continuum. While some disclosures remain compliance-oriented or symbolic, others demonstrate how biodiversity-related information is used to inform operational decisions, resource allocation, and post-implementation reviews, indicating stronger forms of emancipatory accounting.