Natural capital accounting

Natural capital accounting is a new multi-disciplinary approach that places value on preserving ecosystems, their resources and the environment rather than a straight line net profit approach. The 2013 "State of Green Business" includes data on 1600 companies worldwide as well as on the U.S.-based S&P. During 2011 U.S. firms imposed natural capital costs estimated in the region of $351.6 billion, with a global estimate of over $1 trillion. Were governments so inclined to tax environmental impacts - how would that impact corporations? Assuming that at some point these costs become obligatory in accounting, how will the metrics be established with respect to: 1. Impact on cost of raw materials when considering environmental footprint. 2. Additional costs for implementing natural accounting procedures. 3. Social/community/economic impacts on before/after ecosystems. Natural capital accounting may be gaining traction. In 2012, the United Nations Environment Program Finance Initiative's (UNEP FI) "Natural Capital Declaration" was signed by 39 CEOs from global financial institutions setting out four commitments that aim to lay the foundations for the inclusion of ecosystem services on balance sheets in future decision making: * Understand the impacts and dependencies on natural capital * Embed natural capital considerations in loans, equities, bonds and insurance products * Embed natural capital into financial accounts * Disclose and report on natural capital Nadine Cino LEED AP, is a regular contributor to the greater purpose of generating SustainAble action, and is CEO and co-inventor of the Tyga-Box System, New York, N.Y.