Malcolm Thompson (Deputy Secretary, Australian Government Department of Sustainability, Environment, Water, Population and Communities) - Presentation at the United Nations Association of Australia (Victorian Division) Business, Biodiversity and Ecosystem Services: Valuing the Earth's Natural Capital Seminar held in Melbourne, 20 September 2012, in partnership with National Australia Bank. Building momentum for collective action post-Rio+20, the seminar brought together key players from business, government and civil society to discuss the challenges and opportunities in measuring the true value of nature and enhancing natural capital as a critical economic, ecological and social asset. An expert panel addressed: The Natural Capital Declaration and the finance sector Australian Government perspective on natural capital and sustainability: current priorities, measurement and where Australia can make a difference Business and biodiversity: valuing natural capital and ecosystem services in practice The Economics of Ecosystem Services and Biodiversity (TEEB for Business) The System of Environmental - Economic Accounts (SEEA) Integrating the valuing and management of environmental assets into business and government decision-making processes Experiences and opportunities for cross-sector collaboration Guest speakers: Rosemary Bissett (Head of Sustainability Governance and Risk, Enterprise Risk, National Australia Bank) Malcolm Thompson (Deputy Secretary, Australian Government Department of Sustainability, Environment, Water, Population and Communities Stuart Anstee (Chief Adviser, Biodiversity and Ecosystem Services, Rio Tinto) Dr Joshua Bishop (Former Chief Economist, IUCN and National Manager, Markets, Sustainability and Business Partnerships, WWF Australia). Charles Berger (Director of Strategic Ideas, Australian Conservation Foundation) Facilitator: Rosemary Sainty (Former Head, Secretariat UN Global Compact Network Australia and Adviser, Corporate Engagement, Transparency International Australia) More information available at: http://www.unaavictoria.org.au/education-advocacy/masterclasses/natural-capital-seminar/

1. Natural capital and sustainability
Malcolm Thompson
20 September 2012

2. Natural Capital and Sustainability
Sustainability:
the
maintenance
or
improvement
of
wellbeing
over
3me.
Wellbeing:
combina3on
of
economic
prosperity,
community
liveability
and
environmental
integrity,
determined
by
the
quality,
quan3ty,
distribu3on,
use
and
preserva3on
of
stocks
of
economic,
human,
social
and
natural
capital.

3. The importance of natural capital
• Natural resources are valuable
to us
• Ecosystems provide goods and
services
• Both a public and private good

4. The state of Australia’s natural capital
State: relatively good
compared to other countries.
Challenges:
• Climate change
• Water
• Land
• Biodiversity
• Data

5. National Plan for Environmental Information
• Important first step to reform
environmental information base.
• Led by the Bureau of Meteorology
• Will deliver improved environmental
information.
• Standards and systems developed,
e.g. National Environmental
Accounts.

6. System of Environmental-Economic Accounts
• SEEA adopted as international statistical
standard in March 2012.
• Extends System of National Accounts.
• Combined physical and monetary data.

7. Current ABS products applying SEEA
Flow accounts
• Water (annual)
• Energy (annual)
• Greenhouse gases (in development)
• Waste (in production)
Stock accounts
• Land (Victorian accounts in production)
• Environment (annual - linked to SNA: land; subsoil assets; plantation timber;
native timber)
Adjusting SNA aggregates
• Depletion and degradation adjusted net national income (ABS Year
Books)

8. Corporate sustainability reporting (CSR)
• International Integrated Benefits:
Reporting Council framework pilot • Decrease impact on environment
underway. • Enhanced reputation.
• Government supportive of global • Increased understanding of risks
framework for CSR. and opportunities.
• Demonstrate value of company.
• Incentive to improve on, engage
in sustainable business practices.

9. Corporate sustainability reporting in government
Three-year sustainability reporting pilot underway in:
• Department of Sustainability, Environment, Water, Population and Communities
• Bureau of Meteorology
• Department of Finance and Deregulation
• Department of Education, Employment and Workplace Relations
• Department of Families, Housing, Community Services and Indigenous Affairs
• Department of Climate Change and Energy Efficiency
• Department of Parliamentary Services
Objectives:
• greater visibility to impacts of the business of government entities,
• make sustainability more integral to decision-making

10. Rio+20 conference
Conference on contemporary sustainability challenges and responses.
Outcomes:
• Encouragement of integrated
sustainability reporting.
• Invitation to businesses to develop
sustainability strategies.
• Agreement to explore broader
measures of progress taking social and
environmental factors into account.

11. Measuring Sustainability
• Program stems from 2010
Sustainable Population Strategy.
• Will deliver improved information
about economic, environmental and
social dimensions of sustainability.
• Set of sustainability indicators to
inform integrated decision-making.

12. Measuring Sustainability – capital-based approach
Social and Human
Natural Capital Economic Capital
Capital
Capital Stock Capital Stock Capital Stock
Indicators Indicators Indicators
Capital Flows and Capital Flows and Capital Flows and
Drivers Indicators Drivers Indicators Drivers Indicators
Demographic and Contextual Indicators

13. The future
• Comprehensive, consistent and regular
environment reporting through:
– National Plan for Environmental
Information
– System of Environmental-Economic
Accounts
– Measuring Sustainability
• Cultural shift – embed consideration of
natural capital in decision-making by
governments, communities and private sector.