Natural capital navigation

The Scottish Forum on Natural Capital has developed this signposting page to help you to access briefings, tools, resources & guidance to drive understanding of natural capital's importance for your organisation's board members and practitioners.

Click on the sections below to expand.

Natural capital - Board level introduction

Definition - Natural Capital - Scottish Forum on Natural Capital

Describes what natural capital is and why it should be a matter of concern.

Summary - Elephant in the Boardroom (Page 1) - CIMA, EY, IFAC, Natural Capital Coalition

Summarises why finance professionals and those in leadership positions should act now to integrate natural capital considerations into decision making, resource allocation and reporting, and adapt to growing competition for ever more scarce natural resources.

Summary - Guidance on the Strategic Report (Page 3 & 4) - Financial Reporting Council (FRC)

Summarises the non-mandatory guidance on the application of the statutory requirement for a “Strategic Report” for medium and large UK companies. The strategic report is required to explain how the directors have promoted the success of the company, with a focus on its business model, strategy and objectives. This provides a more holistic basis for companies to assess the broader impacts of the business including impacts and dependencies on natural capital.

Summary - International Integrated Reporting Framework (Page 4 & 5) - IIRC

Summarises the purpose of integrated reporting – to provide a more cohesive and efficient approach to corporate reporting which explains more holistically how an organisation creates value over time. Natural capital is one of the six capitals on which reporting is encouraged.

Infographic - Can't see the TREES for the WOOD - World Forum on Natural Capital

Communicates in simple terms the concept of natural capital by illustrating the value of wood vs the value of trees.

Infographic - What's in a Dram? - Scottish Forum on Natural Capital

Communicates the reliance of the economy on natural capital through the example of the “recipe” for whisky.

Video - Pitch for Nature - World Business Council for Sustainable Development

A 2:30min video to explain how business can account for the value of nature and why this is important. Subtitles are available in 20 languages.

Natural capital - Detailed introduction

Glossary of Terms - Natural Capital Initiative

A glossary of terms relevant to natural capital

Guide - Natural and Social Capital Accounting: An introduction for Finance teams – The Prince’s Accounting for Sustainability Project (A4S) CFO Leadership Network

An introduction for finance teams on how to align finance thinking with long term environmental and societal trends. It provides a framework to embed this into decision making.

Framework - Framework for reporting environmental information & natural capital - CDSB (Climate Disclosure Standards Board)

A reporting framework for use by companies making disclosures in, or linked to, their mainstream financial reports covering information about the risks and opportunities that climate change presents to their strategy to identify what is of most value to investors in understanding how climate change affects a company’s financial performance and condition. The framework adopts existing standards and practices including the Greenhouse Gas Protocol and International Financial Reporting Standards as well as reflecting developments in regulatory and voluntary reporting and carbon trading rules. The Climate Disclosure Standards Board (CDSB) is a special project of the Carbon Disclosure Project (CDP - see below) - linking financial and climate change-related reporting to provide policy-makers and investors with clear, reliable information for robust decision making.

Report - Strategic Report Guidance - Financial Reporting Council (FRC)

Non-mandatory guidance on the application of the statutory requirement for a “Strategic Report” for medium and large UK companies. The strategic report is required to explain how the directors have promoted the success of the company, with a focus on its business model, strategy and objectives. This provides a more holistic basis for companies to assess the broader impacts of the business including impacts and dependencies on natural capital.

Embedding natural capital - Board level summary

Briefing - Natural Capital Protocol - Scottish Forum on Natural Capital

One page brief of the Natural Capital Protocol, a framework designed to help generate trusted, credible, and actionable information for business managers to inform decisions.

Summary - Natural Capital Protocol: A primer for business Summary - Natural Capital Coalition

Short introduction to the Natural Capital Protocol and accompanying sector guides. It sets out why applying the Protocol and including natural capital in your considerations will improve your decision making.

Summary - Environmental Profit & Loss (E P&L) - Kering

An open source methodology for valuing the environmental impacts of a business, across its entire supply chain. A leading example of natural capital accounting across the supply chain of a business.

Summary - Integrated Reporting Framework (Page 4 & 5) - IIRC (International Integrated Reporting Council)

Summarises the purpose of integrated reporting – to provide a more cohesive and efficient approach to corporate reporting which explains more holistically how an organisation creates value over time. Natural capital is one of the six capitals on which reporting is encouraged

Embedding natural capital - Tools & approaches

Natural Capital Protocol - Natural Capital Coalition

A framework designed to help generate trusted, credible, and actionable information for business managers to inform decisions.

Natural Capital Toolkit - Natural Capital Coalition / World Business Council for Sustainable Development

An interactive database to help businesses find the right tools to measure and value natural capital as they use the Natural Capital Protocol.

Tool - Environmental Profit & Loss (E P&L) - Kering

An open source methodology for valuing the environmental impacts of a business, across its entire supply chain. A leading example of natural capital accounting across the supply chain of a business.

Natural Capital Business Hub - Natural Capital Coalition

A collaborative, open and dynamic online platform that aims to help diverse companies at different stages on the natural capital journey to: o Evaluate and make the business case for action o Benchmark against other companies and evolving best practices o Learn from curated company case studies o Choose appropriate action targets, frameworks, and tools to incorporate into their internal decision making o Identify high impact partners and projects for collaboration and collective action o Find peers to obtain or offer help and advice

Integrated Reporting Framework - IIRC (International Integrated Reporting Council)

A framework for providing a more cohesive and efficient approach to corporate reporting which explains more holistically how an organisation creates value over time. The framework provides “guiding principles” and “content elements” which underpin such reporting, based on six “capitals” or stocks of value – financial, manufactured, intellectual, human, social and relationship, and natural capital.

Integrated Reporting Examples Database - IIRC (International Integrated Reporting Council)

A database containing examples of emerging practice in Integrated Reporting that illustrate how organizations are currently reporting concise information about how their strategy, governance, performance and prospects, in the context of their external environment, lead to the creation of value over the short, medium and long term.

CDP

The Carbon Disclosure Project (CDP) aims to transform the way the world does business to prevent climate change and protect our natural resources by managing environmental risk through improved measurement and reporting. o They hold the largest collection globally of self-reported climate change, water and forest-risk data. o They have a Forests Programme which produced a Global Forests Report in 2015. o They engage with governments providing them with tailored research and analysis of environmental issues and advise on policy formulation on high quality corporate environmental reporting. o They have developed programs and projects to encourage companies to measure their environmental impacts as e means of reducing them. The website contains a great deal of useful information for businesses which have already started their natural capital journey.

Sustainability Accounting Standards Board (SASB)

US sector specific standards which represent voluntary guidance outside the US on the specific sustainability information which businesses in each sector should disclose.

Natural capital - Sector focus

Clothing

Guide - Natural Capital Protocol Apparel Sector Guide - Natural Capital Coalition

Guide for the clothing sector developed to supplement the Natural Capital Protocol. The Guide is relevant to businesses operating across the clothing value chain including the consumer use and end-of-use stages, as well as input companies throughout the value chain.

Finance

Summary - The Natural Capital Declaration and Roadmap - Natural Capital Finance Alliance

Summarises and explains how to sign the Natural Capital Declaration, a finance sector initiative, endorsed at CEO-level, to integrate natural capital considerations into loans, equity, fixed income and insurance products, as well as in accounting, disclosure and reporting frameworks.

Food & Drink

Briefing - Food & drink and natural capital - Scottish Forum on Natural Capital

One page brief of the relevance of natural capital for Scottish Food & Drink

Guide - Natural Capital Protocol Food and Beverage Sector Guide - Natural Capital Coalition

Guide for the Food & Drink sector developed to supplement the Natural Capital Protocol. The Guide is relevant to all businesses operating in the production, processing, or retailing of food and beverage products but excludes the hospitality/foodservice sector

Land management

Briefing - Land management & natural capital - Scottish Forum on Natural Capital

One page brief of the relevance of natural capital for Scotland's land management sector

Briefing - Peatlands and water quality - Scottish Forum on Natural Capital

One page brief of the role of peatlands in water quality

Find advice

Ask an Expert - Scottish Forum on Natural Capital

A service to increase understanding of the benefits gained from nature, highlight why it is damaged currently and help identify ways for organisations to protect and rebuild Scotland's natural capital.

Ask Oppla - Oppla

A crowd-sourced enquiry service designed to help you find the information you need about nature-based solutions. Answers are provided by members of the Oppla community.

 

The page will be updated as new resources become available, to contribute ideas for resources that should be featured please contact Mike Elm, Project Officer on 0131 312 4765 or email melm@naturalcapitalforum.com.