ERM, the world’s largest pure play sustainability consultancy, and the Capitals Coalition, the multi-stakeholder collaboration focused on redefining value to include natural, social, and human capital in decision-making, have published a guide to help organizations prepare to embed nature positive approaches into their businesses.
In “Valuing Nature: The case for nature-related assessment and disclosure,” the SustainAbility Institute by ERM and the Capitals Coalition set out the business case for defining nature-related impacts and dependencies and measuring the associated risks and opportunities. The report outlines four key steps businesses should take as they navigate the nature agenda and prepare to align their reporting with the Taskforce on Nature-related Financial Disclosures (TNFD).
Matt Haddon, Global Innovation Lead, Biodiversity, Nature, and Water at ERM said: "There is now clear recognition that the protection of natural systems mitigates potential economic losses and provides positive benefit to businesses at the same time as improving biodiversity, limiting the effects of climate change, and strengthening local economies.
“The nature agenda is evolving quickly, and our aim with this guide is to provide a set of actions that companies can take today to integrate nature-related risks and opportunities into their decision-making and prepare for nature-related disclosure.”
Marta Santamaria, Senior Director at the Capitals Coalition stated: “Everything we value and on which we depend derives from nature, but we are failing to protect and recognize the true value of the natural world. Understanding the value of our impacts and dependencies on nature assists in decision-making and can create new value for businesses.
“Disclosing this information limits blind spots and the exposure of businesses to unforeseen impacts hindering their ability to capitalize on further opportunities. Reporting on the value of business impacts, dependencies, and associated risks will help to build strong and resilient businesses and economies.”
The new publication connects the Capitals Coalition’s Natural Capital Protocol with the TNFD beta v0.3 Framework. The Natural Capital Protocol outlines how a company can value impacts and dependencies on natural capital, making it valuable in TNFD-guided risk assessment and disclosures.
The four steps set out by ERM and the Capitals Coalition are designed to support companies from the beginning of their nature journeys, starting with the identification and assessment of nature-related risks and opportunities. The guide explains how to develop a strategy and governance structure to manage these risks and opportunities, then outlines how businesses can operationalize their strategies and prepare related disclosures to align with the TNFD Framework which is scheduled to launch in September 2023.
About the SustainAbility Institute by ERM
The SustainAbility Institute is ERM’s primary platform for thought leadership on sustainability. Its purpose is to define, accelerate, and scale sustainability performance by developing actionable insight for business. The Institute identifies innovative solutions to global sustainability challenges built on ERM’s experience, expertise, and commitment to transformational change.
As the largest global pure play sustainability consultancy, ERM partners with the world’s leading organizations to create innovative solutions to sustainability challenges and unlock commercial opportunities that meet the needs of today while preserving opportunity for future generations.
ERM’s diverse team of 7,500+ world-class experts in over 170 offices in 39 countries supports clients across the breadth of their organizations to operationalize sustainability. Through ERM’s deep technical expertise, clients are well positioned to address their environmental, health, safety, risk, and social issues. ERM calls this capability its “boots to boardroom” approach – a comprehensive service model that allows ERM to develop strategic and technical solutions that advance objectives on the ground or at the executive level.
About Capitals Coalition
The Capitals Coalition is a global collaboration redefining value to transform decision-making. It sits at the heart of an extensive global network which has united to advance the capitals approach to decision-making.
The ambition of the Coalition is that by 2030 the majority of businesses, financial institutions and governments will include the value of natural capital, social capital and human capital in their decision making and that this will deliver a fairer, just and more sustainable world.
The Coalition has published two international protocols – the Natural Capital Protocol and the Social & Human Capital Protocols – that provide a standardized framework for businesses to identify, measure and value direct and indirect impacts and dependencies on stocks of natural, social and human capital. Learn more.