The Need for Standardisation in Enterprise Reporting Brad Monterio, Colcomm Group and Liv Watson, Workiva Investor demand for sustainability and Environmental, Social and Governance (ESG) information has dramatically increased over the last several decades. This demand spike is pushing both the enterprise and regulators to push for greater amounts of information that is comparable, reliable and reusable. Several sustainability and natural capital‐related frameworks and standards exist to help companies define ‘what’ they want to report and ‘how’ they want to measure it ‐ namely, GRI, CDP and SASB. The Natural Capital Coalition’s Natural Capital Protocol was launched in July 2016 to inform manager at a strategic level on how to incorporate natural capital information into their enterprise reporting. This session will provide an overview of how companies can use the Natural Capital Protocol and XBRL for standardized enterprise reporting in order to meet the upcoming disclosure requirements from the UK Office of National Statistics (ONS) and Department for Environment Food & Rural Affairs (DEFRA).

1. The Need for Standardization in
Enterprise Reporting
A Focus on Natural Capital Accounting and XBRL
Liv A. Watson
Co-founder, XBRL standard
Sr. Director, Workiva, Inc.
Brad J. Monterio
Vice Chair, XBRL Int’l Best
Practices Board
Managing Director,
Colcomgroup, Inc.
November 9, 2016

2. WHAT IS NATURAL CAPITAL?
Natural capital is a way of defining the wide
range of benefits that we derive from nature. It
provides the air we breathe and the water we
drink. It is essential to life and it underpins
thriving societies and prosperous economies.
- Natural Capital Coalition
Natural capital is a critical asset, especially for
developing countries where it makes up a
significant share (36%) of total wealth.
- The World Bank
 One of several other commonly recognized
forms of capital (e.g., financial, manufactured)
 Supports all other capitals by providing
essential resources, such as air, water, soil and
minerals, supporting a healthy planet that
underpins thriving societies, prosperous
economies
The stock of renewable and non-renewable
natural resources (e.g., plants, animals, air, water,
soils, minerals) that combine to yield a flow of
benefits to business and society

3. WHAT IS NATURAL CAPITAL ACCOUNTING?
Natural capital accounting is the process of calculating the total
stocks and flows of natural resources and services in a given
ecosystem or region. Accounting for such goods may occur in
physical or monetary terms.

4. THE NATURAL CAPITAL ACCOUNTING ECOSYSTEM
PROTOCOLPROTOCOL
ENTITIES
CDSB GRI SASB
“GREEN GDP” “ENVIRONMENTAL PROFIT & LOSS"
UN SEEA
CDP
QUESTIONNAIRE
GRI REPORT
ANNUAL
REPORT
REPORTING
FRAMEWORKS
& STANDARDS
DISCLOSURE
VEHICLE
UK ONS
DEFRA
OTHER AGENCIES
FEDERAL
AGENCIES
UN NATIONAL
ACCOUNT
QUESTIONNAIRE
DISCLOSURE
FORMAT PDF PDF PDFEXCEL
CDP (XBRL) GRI (XBRL)
SECURITIES
COMMISSIONS
UN NAT’L
ACCOUNTS
AGGREGATED
DATABASE
DATA
REPOSITORIES
DATA
CONSUMERS

5. THE NATURAL CAPITAL COALITION PROTOCOL

6. INTEGRATING THE NATURAL CAPITAL COALITION PROTOCOL

7. PUMA AND ITS ENVIRONMENTAL PROFIT & LOSS (EP&L)
 Puma quantifies a range of environmental impacts arising from its supply chain, transport
networks, operations and manufacturing, focusing especially on the leather and cotton in its
products
 They measure water use, greenhouse gas emissions, land use and waste
 Puma believes that by monetizing its impacts it has facilitated better strategic planning and
helped identify those areas of the business where management action is most required

8. COCA COLA AND NATURAL CAPITAL MATERIAL RISK
 Coca Cola has a strong focus on water stewardship - water scarcity is a material risk affecting
its business model
 Coca Cola commitment expressed through an ambitious target to replenish as much water as
it uses by 2020
 Achieving this target requires Coca Cola to quantify the water it replenishes, which it has
been able to do with support from third party organizations like The Nature Conservancy

9. DOW CHEMICAL AND ECONOMIC VALUE PROVIDED BY NATURE
 Dow Chemical Company analyzing its impacts and dependencies on ecosystems at
its joint venture production site in Santa Vitória, Brazil
 This pilot project helped create a roadmap for assessing economic value of the
‘services’ provided to it by nature, which informs decision making at a strategic and
operational level

10. THE STRUCTURED DATA PROJECT
PROTOCOLPROTOCOL
ENTITIES
CDSB GRI SASB
“GREEN GDP” “ENVIRONMENTAL PROFIT & LOSS"
UN SEEA
CDP
QUESTIONNAIRE
GRI REPORT
ANNUAL
REPORT
REPORTING
FRAMEWORKS
& STANDARDS
DISCLOSURE
VEHICLE
UK ONS
DEFRA
OTHER AGENCIES
FEDERAL
AGENCIES
UN NATIONAL
ACCOUNT
QUESTIONNAIRE
DISCLOSURE
FORMAT PDF PDF PDFEXCEL
CDP (XBRL) GRI (XBRL)
SECURITIES
COMMISSIONS
UN NAT’L
ACCOUNTS
AGGREGATED
DATABASE
DATA
REPOSITORIES
DATA
CONSUMERS
ICAEW Natural Capital
Accounting Structured
Data Task Force

11. OUR CALL TO ACTION
VOLUNTEER TO REVIEW:
• THE PROJECT’S ASSESSMENT OF
INTEGRATING XBRL INTO NATURAL
CAPITAL STATISTICAL DATA
• THE ALIGNMENT WITH CURRENT
MARKET DEFINITIONS AROUND
NATURAL CAPITAL