Nature on the balance sheet: Accountability for Nature Positive

Abstract Nature loss poses a growing risk to the global economy, prompting calls for enhanced business accountability. To support the urgent business transformations required to achieve Nature Positive goals, decision‐makers, investors, lenders and other stakeholders need consistent, comparable and decision‐useful information on the state of nature and the benefits it provides. This paper presents a conceptual framework for natural capital accounting (NCA), adapting principles from financial accounting to support transparent reporting on business interactions with nature. We propose a set of structured statements— Natural Capital Balance Sheets , Natural Capital Income Statements, and Ecosystem Change Statements— that report on stocks of natural capital and associated ecosystem service flows. This approach is novel in its application of double‐entry financial accounting principles to ecological assets, liabilities and equity, offering a structured method for tracking organisational stewardship of nature. The framework builds on established financial reporting practices and aligns with global statistical standards such as the United Nations System of Environmental‐Economic Accounting (SEEA). A hypothetical example demonstrates how the framework can be applied to track changes in ecosystem condition and assess progress towards Nature Positive commitments. This work provides a foundation for mainstreaming NCA as a tool for ecological accountability. Further research is needed to operationalise the framework, refine ecological metrics and integrate NCA into governance and reporting systems. As global sustainability standards evolve, this framework offers a foundation for embedding nature into business reporting and decision‐making and aligning corporate performance with ecological sustainability.

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Publication Details

Journal
Methods in Ecology and Evolution
Published
2026-01-20
DOI
https://doi.org/10.1111/2041-210x.70193
Primary Topic
Environmental Conservation and Management
Type
article
Field-Weighted Citation Impact
0.00

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Nature on the balance sheet: Accountability for Nature Positive

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Methods in Ecology and Evolution
Environmental Conservation and Management
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Nature on the balance sheet: Accountability for Nature Positive

Claire A. Horner, G Smith, Francisco Ascui, Rayne van den Berg, Anthony P. O'Grady, Sue Ogilvy, Swaroop Tulsidas
article en

Abstract

Abstract Nature loss poses a growing risk to the global economy, prompting calls for enhanced business accountability. To support the urgent business transformations required to achieve Nature Positive goals, decision‐makers, investors, lenders and other stakeholders need consistent, comparable and decision‐useful information on the state of nature and the benefits it provides. This paper presents a conceptual framework for natural capital accounting (NCA), adapting principles from financial accounting to support transparent reporting on business interactions with nature. We propose a set of structured statements— Natural Capital Balance Sheets , Natural Capital Income Statements, and Ecosystem Change Statements— that report on stocks of natural capital and associated ecosystem service flows. This approach is novel in its application of double‐entry financial accounting principles to ecological assets, liabilities and equity, offering a structured method for tracking organisational stewardship of nature. The framework builds on established financial reporting practices and aligns with global statistical standards such as the United Nations System of Environmental‐Economic Accounting (SEEA). A hypothetical example demonstrates how the framework can be applied to track changes in ecosystem condition and assess progress towards Nature Positive commitments. This work provides a foundation for mainstreaming NCA as a tool for ecological accountability. Further research is needed to operationalise the framework, refine ecological metrics and integrate NCA into governance and reporting systems. As global sustainability standards evolve, this framework offers a foundation for embedding nature into business reporting and decision‐making and aligning corporate performance with ecological sustainability.

Methods in Ecology and Evolution
CSIRO Oceans and Atmosphere (AU), Federation University (AU), Launceston General Hospital (AU), Futures Group (United States) (US), CSIRO Scientific Computing (AU), ACT Government (AU), University of Edinburgh (GB)
Forest and Wood Products Australia
Openalex Percentile: Top 86%
Environmental Conservation and Management
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