This document discusses taking natural capital into account when valuing companies. It defines natural capital as the value of nature to people, businesses, and the economy. The speaker argues that natural and social capital should be integrated into corporate performance management to reflect a company's true costs and value. The document also provides an overview of tools and lessons for valuing natural capital, and discusses the Natural Capital Protocol initiative to develop common terminology and encourage experimentation with methodologies to scale up natural capital accounting.

1. Taking Natural Capital into
account
Eva Zabey
World Business Council for Sustainable
Development (WBCSD)
26 August 2014, Davos

2. Agenda
• Why account for and value
nature and how?
• What can we learn from
company experiences?
• How can we scale up?

4. Redefining Value Objective
4
Accelerate progress to a world where more sustainable companies are
recognized and rewarded, and therefore more successful.
Integrate natural and social capital
measurement and valuation into
corporate performance management and
improve the effectiveness of non-financial
internal and external reporting
so that it progressively reflects the
true value of a company and discloses true
profit and true cost.

5. What is Natural Capital?

6. Natural capital is the value of nature to people, society,
businesses and the economy.
Should natural capital be included in risk assessment &
management? If so, how?

7. Improve decision making Save costs
Why value?
Assess liability and
compensation
Explore new revenues

9. Eco4Biz
•1 decision tree
•1 page fact sheets 22 existing tools
•Many references

11. Lessons
learned Local community
values
Leverage existing
processes, e.g. LCA
Internal decision making
vs. external reporting
Monetization Y/N?
Economic vs. financial

12. Scale up
Natural Capital Protocol
• Common terminology
• Collective ownership
• Encourage
experimentation of
methodologies

13. Thank you!

14. Valuation techniques to use
Note: many
values highly
context
specific:
Requiring
specific
valuation
techniques - or
adjustments to
Benefit
Transfers.
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