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The concepts of “natural capital” and “sustainable urban development” are garnering widespread attention as the role of the environment and ecology in promoting economic development and maintaining human well-being is increasingly acknowledged. However, prevailing approaches to accounting for natural capital in sustainable cities exhibit deficiencies, with many overlooking the value associated with the natural environment, ecology, and capital stock of these cities. To rectify this issue, we propose a framework for natural capital analysis and decision-making for sustainable cities (Environment-Ecology-Economy Sustainable Development, EEE-SEEA). This framework integrates environmental, ecological, and economic perspectives, employing ArcGIS software for the visualization and analysis of sustainable cities in China. The results indicate an inverted U-shaped development trend distribution for natural capital, with ecosystem service accounting displaying a stable trend. The estimation results for urban sustainable development show a consistent annual increase with a certain level of resource dependence. On a level, natural capital accounting reached its zenith in 2010, gradually declining in 2015 and 2021, thus validating the inverted U-shaped development trend distribution. Ecosystem service accounting has demonstrated continuous development over the years, with the “Hu Huanyong line” becoming a crucial reference for distribution. The degree of sustainable development among cities is on the rise, with the central and northern regions of China exhibiting higher overall development quality. By integrating natural capital accounting and ecosystem service assessment, it becomes evident that cities in eastern and southern China still have significant room for improvement in terms of their sustainable development trajectory. [ABSTRACT FROM AUTHOR]

Abstract Demand for ecological restoration of Earth’s degraded ecosystems has increased significantly since the adoption of The Kunming-Montreal Global Biodiversity Framework in December 2022, with target 2 aiming to ensure that at least 30% of degraded ecosystems are under effective restoration by 2030. More recently, in December 2023, the Australian Parliament introduced the Nature Repair Act, which establishes a framework for the world’s first legislated, national, voluntary biodiversity market. How can the effectiveness of these ambitious targets be measured? Natural Capital Accounting (NCA) provides a framework to measure changes in ecosystem condition that is applicable across ecosystems and potentially catalogue effects of restoration interventions to drive investment, improvement to practice, and ultimately, to better protect the Earth's ecosystems. However, the framework has not been tested in this context. In this progressive approach, we populated the leading global NCA framework with ecological data to quantify changes in ecosystem condition after restoration. In principle, NCA is fit for purpose, however, methodological refinements and ecological expertise are needed to unlock its full potential. These tweaks will facilitate adoption and standardisation of reporting as efforts ramp up to meet ambitious global restoration targets.

Demand for ecological restoration of Earth's degraded ecosystems has increased significantly since the adoption of The Kunming-Montreal Global Biodiversity Framework in December 2022, with target 2 aiming to ensure that at least 30% of degraded ecosystems are under effective restoration by 2030. More recently, in December 2023, the Australian Parliament introduced the Nature Repair Act, which establishes a framework for the world's first legislated, national, voluntary biodiversity market. How can the effectiveness of these ambitious targets be measured? Natural Capital Accounting (NCA) provides a framework to measure changes in ecosystem condition that is applicable across ecosystems and potentially catalogue effects of restoration interventions to drive investment, improvement to practice, and ultimately, to better protect the Earth's ecosystems. However, the framework has not been tested in this context. In this progressive approach, we populated the leading global NCA framework with ecological data to quantify changes in ecosystem condition after restoration. In principle, NCA is fit for purpose, however, methodological refinements and ecological expertise are needed to unlock its full potential. These tweaks will facilitate adoption and standardisation of reporting as efforts ramp up to meet ambitious global restoration targets. [ABSTRACT FROM AUTHOR]

The natural capital indicator framework (NCIF) offers an entry‐level approach to natural capital reporting using existing data sources and indicators. Here, we test the NCIF for the first time in the megadiverse Pantanal biome in Brazil. We compile publicly available indicators on the cattle, soy, fishing, and nature‐based tourism industries alongside indicators on the state of the biome and its ecosystem services. We show that the NCIF is quick to implement using existing environmental and socioeconomic indicators produced by public and NGO statistics communities. However, we identify significant gaps in indicators on the condition and economic value of the biome, the human investment required to derive benefits from the biome, emissions produced by the industries that exploit the biome, and the ecosystem services that maintain the functioning of the biome, such as nutrient cycling and biodiversity. Existing initiatives in Brazil could fill natural capital reporting gaps, including Brazil's experimental natural capital accounts. The NCIF provides a structured approach to highlight gaps in natural capital reporting and guide decision‐makers to prioritize investment in filling data and reporting gaps. Systematic, transnational monitoring must fill gaps in natural capital data to inform decision‐making in the megadiverse Pantanal biome. [ABSTRACT FROM AUTHOR]

The fundamental component of the ecological compensation system, as well as the crucial basis for its efficient functioning, is calculating the ecological compensation amount and establishing the ecological compensation standard. This study integrates the ecological footprint with natural capital monetization and other methods by introducing a natural capital accounting system. From the standpoint of natural capital supply and demand, it also builds an accounting framework for ecological compensation standards that is standardized, dynamic, and regionally differentiated while taking local socioeconomic aspects into account. We determined the amount of ecological compensation by using Xinjiang as the research object and calculating and analyzing the features of regional and temporal changes in the monetary and physical quantities of natural capital in Xinjiang from 2010 to 2020. The findings show that from 2010 to 2020, Xinjiang's ecological footprint increased by 1.26 times in physical terms and 1.21 times in monetary terms and that its ecological carrying capacity increased by 4.13% in physical terms and 9.42% in monetary terms. The ecological deficit continues to grow in physical and monetary terms, with a per capita ecological deficit in 2020 of 19.92 s-nha/cap and 70,100 CNY/cap in physical and monetary terms, respectively. The amount of ecological compensation required to be paid in Xinjiang increased from CNY 5659 million to CNY 10,259 million, and the per capita ecological compensation payment standard increased from 259.42 CNY/cap/yr to 396.11 CNY/cap/yr. In summary, Xinjiang's natural capital supply is insufficient to meet the demand for consumption, and the ecological deficit is growing with time, necessitating the payment of ecological compensation. The study's results lay the foundation for formulating and implementing ecological compensation policies in Xinjiang and provide theoretical support for constructing ecological civilization in Xinjiang. In addition, the ecological compensation accounting framework constructed in this study organically integrates natural capital theory, ecosystem services, and socioeconomic influencing factors, which enriches the methodology of accounting for ecological compensation standards, and, at the same time, can be used as a paradigm of a dynamic and equitable ecological compensation accounting framework to further promote its use at different scales and regions. [ABSTRACT FROM AUTHOR]

In the contemporary context, characterized by the paramount importance of sustainability, both governments and companies, particularly multinational enterprises (MNEs), play an important role in fostering and overseeing the transformative processes necessary to establish a robust accounting framework for natural capital. The objective of this paper is twofold: firstly, to conduct a comprehensive review of the existing body of literature on this subject and to highlight the importance of avoiding intangible liabilities in MNE from bad practices based on Natural Capital bad practices, and secondly, to outline prospective directions for further research in this domain. To achieve these objectives, we pose two fundamental research questions: (1) What is the current state of knowledge regarding the intangible liabilities and accounting practices of MNEs concerning Natural Capital? (2) How can future research in the field of Natural Capital Accounting be oriented to assist MNEs in accounting for their interactions with Natural Capital? A mixed-method approach is used to address these inquiries. Initially, we substantiate the intrinsic connection between MNEs and the natural environment, utilizing bibliometric techniques to identify the primary themes and areas of focus in the realm of natural capital accounting. Subsequently, we employ in-depth analysis and logical reasoning to propose potential avenues for future research. Additionally, we present a comprehensive model designed to guide forthcoming research endeavors in the domain of natural capital accounting. Among the salient findings derived from our model analysis, it is evident that the inclusion of other environmental factors, such as ecosystem services and biodiversity, should be integral to the overall framework of natural capital accounting. Furthermore, the incorporation of such accounting practices into the day-to-day operations of companies is essential to preserving the natural capital and the reputation of the firms. [ABSTRACT FROM AUTHOR]

Pilot monetary ecosystem accounts were compiled for KwaZulu-Natal Province, South Africa, in order to highlight any data, methodological or process issues in their compilation and to contribute towards charting a strategy for ecosystem accounting. The Province is highly diverse, with eight biomes, large proportions under communal, private and state tenure, globally important biodiversity, variable landscape condition and encompassing catchment areas of nine river systems. We accounted for the supply and use of wild biomass, reared animal production, cultivation (including silviculture), nature-based tourism, property value, carbon storage and sequestration, pollination, flow regulation (maintenance of base flows), sediment retention, water quality amelioration and flood attenuation. For each ecosystem service, we devised conceptually valid methods that were suitable for the existing data to produce values consistent with the System of National Accounts. These were then summed to estimate total annual flows from each 100 x 100 m spatial unit and its asset value. Challenges encountered included lack of data on small-scale and subsistence production, mismatches in the classification of landcover and government production statistics, unreliable measures of ecosystem condition, the large scale of hydrological modelling and lack of centralised data organisation relating to hydrological services. There was heavy reliance on past empirical research and on global datasets. The combined value of the annual flow of the ecosystem services valued was R52.5 billion in 2011, equivalent to 12% of the provincial GDP. However, the values of many of the services have decreased over the accounting period, due to a combination of changes in demand and ecosystem condition. Asset value was undermined to some extent by unsustainable use of provisioning services. Some areas will require careful messaging, particularly in regard to the contentious issue of valuing carbon retention and the use of exchange values rather than welfare values that are used in economic analysis.

This study aims to model hydrological ecosystem services provided by forests and explore how they can be captured in an ecosystem accounting framework. We test a dynamic GIS-based hydrological model to quantify and map key hydrological ecosystem services in the Southern Aegean Region of Turkey and integrate the services into an ecosystem account following the System of Environmental Economic Accounting – Ecosystem Accounting (SEEA EA). We map and account for services in physical and monetary terms, using an innovative model to quantify flood control services. Our paper connects forest management with water resource supply, eliciting the hydrological role of forests. The combined value of the three ecological services (groundwater recharge, flood control and sediment control) is about 201 million €/year. Reduction in forest coverage means that the economy will face the consequences of losses of these critical regulating services. Finally, we discuss opportunities, challenges, and limitations in the practical application of the ecosystem accounting concept.

In recent decades, a concerted effort has been made to define methodologies and frameworks to account for the contribution of the natural environment to national wealth and its role in fulfilling societal and economic needs. The linkages between natural capital and human well-being are even stronger in low-income and vulnerable countries, such as Small Island Developing States (SIDS). This is particularly true for coastal and marine ecosystems and for SIDS, considering that a large portion of their population live along the coast. Therefore, SIDS would greatly benefit from systematically assessing and recording the condition and services provided by marine and coastal habitats in ecosystem accounts. Applications of accounting frameworks to marine and coastal habitats, however, are still under development. Through a case study in the Caribbean Island of Grenada, we explore SIDS readiness to develop marine and coastal natural capital accounts, in particular framed within the guidelines of the United Nations System of Environmental-Economic Accounting Ecosystem Accounting (SEEA-EA). We find that, while data to compile accounts of ecosystems extent exist and may be suitable for accounting, data related to ecosystem condition are very limited. Data gaps significantly constrained the potential approaches to estimate the ecosystem services supply provided by the coastal and marine environment in our natural capital accounts for Grenada. Our case study investigation brings us to suggest initial steps for the development of ecosystem accounts in SIDS, including potential methodologies and approaches and discuss how developing a set of coherent accounts can play a key role in incorporating nature into decision-making.

Abstract Competing land‐use demands for agriculture and nature conservation is one of the most significant global challenges. To improve the health of landscapes, collaborative transdisciplinary solutions are required. Environmental accounting is an attractive governance approach for helping to deliver healthy future landscapes; however, the diversity of approaches to environmental accounting makes this field complex to navigate, which limits transdisciplinary collaboration and impedes implementation. We seek to address this issue by presenting a new framework to clarify environmental accounting. This framework classifies the currently disparate branches of the literature into four newly described environmental accounting types: Organisational Environmental Management Accounting, Organisational Environmental Reporting Accounting, Area Environmental Management Accounting and Area Environmental Reporting Accounting. The framework is then used to discuss, across multiple scales (organisational, ecosystem and national), existing environmental accounting tools which could assist in delivering healthy future landscapes, and areas for future research. Finally, we demonstrate the potential for environmental accounting research approaches (materiality assessment, dialogic accounting and critical accounting) to assist in defining healthy future landscapes. This paper presents the first substantial exploration of environmental accounting in the landscapes context and presents a research agenda to progress this exciting area of transdisciplinary research. Read the free Plain Language Summary for this article on the Journal blog.

The Integrated system for Natural Capital Accounting (INCA) was developed and supported by the European Commission to test and implement the System of integrated Environmental and Economic Accounting – Ecosystem Accounting (SEEA EA). Through the compilation of nine Ecosystem Services (ES) accounts, INCA can make available to any interested ecosystem accountant a number of lessons learned. Amongst the conceptual lessons learned, we can mention: (i) for accounting purposes, ES should be clustered according to the existence (or not) of a sustainability threshold; (ii) the assessment of ES flow results from the interaction of an ES potential and an ES demand; (iii) the ES demand can be spatially identified, but for an overarching environmental target, this is not possible; ES potential and ES demand could mis-match; (iv) because the demand remains unsatisfied; (v) because the ES is used above its sustainability threshold or (vi) because part of the potential flow is missed; (vii) there can be a cause-and-effect relationship between ecosystem condition and ES flow; (viii) ES accounts can complement the SEEA Central Framework accounts without overlapping or double counting. Amongst the methodological lessons learned, we can mention: (ix) already exiting ES assessments do not directly provide ES accounts, but will likely need some additional processing; (x) ES cannot be defined by default as intermediate; (xi) the ES remaining within ecosystems cannot be reported as final; (xii) the assessment and accounting of ES can be undertaken throughout a fast track approach or more demanding modelling procedures.

The European Commission developed an amendment to Regulation 691/2011 on European environmental economic accounts to include reporting on ecosystem accounts compliant to the United Nations Statistical Commission System of Environmental-Economic Accounts – Ecosystem Accounts (SEEA-EA) standard. To support Member States implementing this regulation, an open source tool, known as INCA-tool, to generate ecosystem service accounts has been developed, based on the Knowledge Innovation Project on Integrated Systems of Naural Capital and Ecosystem Services Accounting (KIP-INCA) methodologies. The INCA-tool was developed by taking into account the FAIR principle for software and data, as well as existing interoperability standards by the SEEA community. Three types of users were identified with their specific needs, interactions and skills. To meet their needs, the INCA-tool was split into two parts, a python package to perform the calculations and an acessible and easy-to-use user interface in QGIS to integrate national information. With a first version of the toolkit in place, improvements to the existing calculation methods and alignment with the upcoming EU regulation can be achieved. Further, feedback from Member States beta-tests and their experiences is currently collected and implemented and the full public roll-out is planned for the end of 2022. The software packages in the toolkit were already used to extend the existing nine INCA European wall-to-wall account series with the year 2018.

The single-site travel cost model is a method typically used to estimate the recreational value of open-access natural areas. However, when utilised at sites where multiple ecosystem types are present, the proportion of value that is generated by each ecosystem can be unclear. Natural capital frameworks, such as the UN's System of Environmental-Economic Accounting, require values that are ecosystem specific. Therefore, recreational values from single-site travel cost models may be difficult to incorporate. In this study, we estimate the use value of a protected coastal site using a single-site travel cost model and demonstrate three approaches that could be employed to assign a proportion of the total use value to one of the key ecosystems at the site, a saltmarsh. The welfare estimate for the entire site is €4.1 million per year. The value that can be attributed to saltmarsh ranges from €280,154 to €1.7 million, depending on the approach used. We discuss the relevance of these approaches for different contexts, including natural capital accounting. [ABSTRACT FROM AUTHOR]

• SEEA-EA applied in a coastal lagoon in a context of restoration works, compiling a set of ecosystem accounts. • Interventions improved abiotic conditions, but multiple factors negatively affected biotic characteristics. • Results captured effects of environmental measures, economic trends, climate change and biological invasions. • Benefits from local measures on ecosystem conditions and ES were offset by drivers acting at wider scales. • Studies on individual ecosystems are fundamental to reliably upscale ecosystem accounting in deltaic areas. Ecosystem accounting is increasingly used at national and regional levels to guide environmental management. Nonetheless, there is a lack of accurate data on individual ecosystems, which hampers the reliability of upscaling analyses critical to understanding human impacts on ecosystems. Delta areas are particularly challenging due to the complex and unique ecological characteristics created by human activities interacting with aquatic and terrestrial domains. This study aims to address this gap by compiling a comprehensive set of ecosystem accounts that cover extent, condition and services at the individual ecosystem level. In particular, the applicability of the System of Environmental-Economic Accounting – Ecosystem Accounting (SEEA-EA) framework will be evaluated in the context of a restoration project at the Sacca di Goro lagoon, a coastal brackish lagoon located in the Po delta (Northern Italy). The analysis shows that the SEEA-EA can effectively capture the impact of various factors, including environmental measures, socio-economic trends, climate change, and biological invasions, on an individual ecosystem. The environmental interventions resulted in a significant restoration of reed habitats and an improvement in the abiotic characteristics. However, other drivers acting at different scales had negative impacts on biotic indicators. The decline of the fishery in the Adriatic region, along with climate change and the recent invasion of blue crabs, has significantly impacted the fish community and clam farming, resulting in the loss of valuable provisioning services such as fishery and aquaculture. The case of the Sacca di Goro lagoon demonstrates that local measures can enhance ecological conditions and some regulating services but other larger-scale factors may have relevant and unexpected impacts. To scale up the analysis at a national or regional level, further research on individual ecosystem types is necessary, especially in the case of deltas and estuaries. [ABSTRACT FROM AUTHOR]

Ocean Accounting (OA) is an emergent framework to collate environmental, economic, and social data in a standardised manner, aligned with existing international statistical accounting standards. This involves the recording of the interactions between the ocean and the economy, considering both the contributions of the ocean to economic activities and the impacts of human activities on the ocean. The OA framework offers a multidisciplinary approach to deriving statistics and indicators that consider the ocean's contribution to society and the economy. As implementation of OA increases globally, there is a need to understand the modalities in which governments commence activities, including potential impacts to the use and maintenance of accounts into the future. Here, we conduct a global review of countries that have commenced OA activities and define the modes of implementation across 24 identified countries. Two modes were identified, (i) government-led (13 countries) and (ii) externally led (i.e., non-government institutions, 11 countries). To determine the strategic and operational implications associated with each mode, the study performed a Strength-Weakness-Opportunity-Threat (SWOT) analysis via expert elicitation. The SWOT analysis of government-led implementation identified strengths in centralised coordination and alignment with policies, but weaknesses included limited expertise and resources. External institutions (e.g., universities or consultants), despite offering diverse expertise and cost-effectiveness, face challenges such as legitimacy issues and misalignment with government policies, posing risks to program sustainability. As OA activities progress, countries may transition from externally led implementation to government-led projects. Understanding each mode's implications offers important insights for countries considering future implementation of OA. • The implementation mode of twenty-four countries conducting Ocean Accounting was assessed. • Identified modes were government (13) or externally led (11) across countries. • Government-led activities provided coordination but may not have necessary expertise. • Externally-led activities may risk future compilation without knowledge transfer. • Further research could sub-divide modes and explore transitions between them. [ABSTRACT FROM AUTHOR]

In the contemporary context, characterized by the paramount importance of sustainability, both governments and companies, particularly multinational enterprises (MNEs), play an important role in fostering and overseeing the transformative processes necessary to establish a robust accounting framework for natural capital. The objective of this paper is twofold: firstly, to conduct a comprehensive review of the existing body of literature on this subject and to highlight the importance of avoiding intangible liabilities in MNE from bad practices based on Natural Capital bad practices, and secondly, to outline prospective directions for further research in this domain. To achieve these objectives, we pose two fundamental research questions: (1) What is the current state of knowledge regarding the intangible liabilities and accounting practices of MNEs concerning Natural Capital? (2) How can future research in the field of Natural Capital Accounting be oriented to assist MNEs in accounting for their interactions with Natural Capital? A mixed-method approach is used to address these inquiries. Initially, we substantiate the intrinsic connection between MNEs and the natural environment, utilizing bibliometric techniques to identify the primary themes and areas of focus in the realm of natural capital accounting. Subsequently, we employ in-depth analysis and logical reasoning to propose potential avenues for future research. Additionally, we present a comprehensive model designed to guide forthcoming research endeavors in the domain of natural capital accounting. Among the salient findings derived from our model analysis, it is evident that the inclusion of other environmental factors, such as ecosystem services and biodiversity, should be integral to the overall framework of natural capital accounting. Furthermore, the incorporation of such accounting practices into the day-to-day operations of companies is essential to preserving the natural capital and the reputation of the firms.

The COVID-19 pandemic and related social and economic emergencies induced massive public spending and increased global debt. Economic recovery is now an opportunity to rebuild natural capital alongside financial, physical, social and human capital, for long-term societal benefit. Yet, current decision-making is dominated by economic imperatives and information systems that do not consider society's dependence on natural capital and the ecosystem services it provides. New international standards for natural capital accounting (NCA) are now available to integrate environmental information into government decision-making. By revealing the effects of policies that influence natural capital, NCA supports identification, implementation and monitoring of Green Recovery pathways, including where environment and economy are most positively interlinked. [ABSTRACT FROM AUTHOR]

Increasing tree planting on farms can provide a range of benefits. However, there are many barriers to increasing plantings on farms. To answer the research question of how natural capital accounting might be used to support farmers to increase trees on their farms, we spoke to 22 decision makers and stakeholders who are working to increase tree planting in different sectors. We also worked with farmers to plant over 200 ha of trees. The interview results show how tree planting programs can be supported to achieve longer-term, on-farm and social outcomes. The practical results highlight the importance of tailoring different strategies to different objectives. We find that natural capital accounting is a potential way to create partnerships across government and non-governmental organisations beyond the farm gate and to align individual and national scale objectives. Increasing trees on farms is not just about farmers, all of society has a role to play. We also note the need to raise public awareness of the different flow-on benefits of increasing natural capital on farms. [ABSTRACT FROM AUTHOR]

In recent years, a vast amount of scientific literature has highlighted the benefits of nearby green space for physical and mental health, but the large variation in scope, methods and indicators used in these studies hampers the assessment of these benefits in the context of natural capital accounting. To our knowledge, this paper is one of the first studies to quantify and value these benefits in the context of natural capital accounting. A method was developed and applied to the Flemish Region in Belgium for 2013 and 2016. The physical supply and use accounts for health are based on a set of selected dose-effect relationships that quantify the impact of the availability of greenspace on seven specific indicators for physical and mental health, including mortality, cardio-vascular diseases, diabetes and depression. The indicator for green-blue areas is the percentage of green-blue areas in total land use, calculated for 0.5, 1 and 3 km radius from the residence, based on detailed land-use maps (10 m x 10 m) for Flanders, Belgium. The base-line data for mortality and illness are average data for the Flemish Region. These health impacts are weighted using Daly's (disability-adjusted life years) and aggregated. The total health benefits due to the availability of green-blue areas for the total Flemish population was estimated at almost 85,000 DALYs. This is 27% of the estimated total burden of disease in Flanders in 2016 for the seven selected diseases. The monetary accounts are based on a detailed assessment for mortality and morbidity of three different cost components, i.e. avoided medical costs (e.g. hospitalisation) and avoided absenteeism and welfare loss due to suffering and reduced life expectancy. Productivity gains from avoided absenteeism is valued, based on statistics on absenteeism for specific diseases for and labour market data from Belgium and account for 52% of the total monetary value of green spaces. Cost of illness is valued, based on market data and illness specific studies for Belgium or Europe and account for 36% of total values. Welfare gains from increased life expectancy are valued on the basis of European studies for the VOLY (value of a life year lost), based on the simulated exchange value for the willingness-to-pay for increased life expectancy. This accounts for 12% of the total monetary value of green space. The total monetary benefits amount to 464 Euro per inhabitant per year or 3 billion Euro per year for Flanders. This corresponds to 1.3% of the GDP, which reflects the importance of these benefits. The methodology is incomplete as not all health indicators are covered, mainly due to a lack of dose-effect relationships. The research priority for potential users of the accounts is a better indicator for contact with green space that does differentiate between ecosystems, their quality, accessibility or their use. This requires more systematic health impact studies that take these elements into account, as well as more systematic data on the daily use of green space by citizens. In the meantime, an additional set of condition accounts on these elements can be used, especially to follow changes in quality and use of green-blue areas over time. [ABSTRACT FROM AUTHOR]

Combining natural capital accounting tools and ecosystem restoration approaches builds on existing frameworks to track changes in ecosystem stocks and flows of services and benefits as a result of restoration. This approach highlights policy‐relevant benefits that arise due to restoration efforts and helps to maximize opportunities for return on investment. Aligning the System of Environmental Economic Accounting–Ecosystem Accounting (SEEA EA) framework with risk assessment tools, we developed a risk register for peatlands in two contrasting catchments in Ireland, based on available information relating to peatland stocks (extent and condition) and flows (services and benefits), as well as knowledge of pressures. This approach allowed for identification of areas to target peatland restoration, by highlighting the potential to reduce and reverse negative trends in relation to provisioning, regulating, and cultural services, flows relating to non‐use values, as well as abiotic flows. We also highlighted ways to reduce and reverse the effects of historical and ongoing pressures through restoration measures, aligning our approach with that outlined in the SER International Principles and Standards for the Practice of Ecological Restoration. Building on the synergies between the SEEA EA and the SER Standards is highlighted as a means to develop transdisciplinary collaboration, to assist in setting and achieving targets set out under the UN Decade on Ecosystem Restoration as well as integrating regional policy targets set under the EU Biodiversity Strategy for 2030, and the related EU Habitats and EU Water Framework Directives. [ABSTRACT FROM AUTHOR]

Competing land‐use demands for agriculture and nature conservation is one of the most significant global challenges. To improve the health of landscapes, collaborative transdisciplinary solutions are required.Environmental accounting is an attractive governance approach for helping to deliver healthy future landscapes; however, the diversity of approaches to environmental accounting makes this field complex to navigate, which limits transdisciplinary collaboration and impedes implementation.We seek to address this issue by presenting a new framework to clarify environmental accounting. This framework classifies the currently disparate branches of the literature into four newly described environmental accounting types: Organisational Environmental Management Accounting, Organisational Environmental Reporting Accounting, Area Environmental Management Accounting and Area Environmental Reporting Accounting.The framework is then used to discuss, across multiple scales (organisational, ecosystem and national), existing environmental accounting tools which could assist in delivering healthy future landscapes, and areas for future research.Finally, we demonstrate the potential for environmental accounting research approaches (materiality assessment, dialogic accounting and critical accounting) to assist in defining healthy future landscapes.This paper presents the first substantial exploration of environmental accounting in the landscapes context and presents a research agenda to progress this exciting area of transdisciplinary research. Read the free Plain Language Summary for this article on the Journal blog. Read the free Plain Language Summary for this article on the Journal blog. [ABSTRACT FROM AUTHOR]

The fairness of the utilization of cultivated land resources is essential for the balanced development of the region, but there are few researches to analyze it. Against the background of the urgent need for farmland protection and ecological compensation, this paper takes cultivated land as the research object and uses a three-dimensional ecological footprint model to account for and analyze the utilization of natural capital stock and flow of cultivated land in Beijing-Tianjin-Hebei region from 2009 to 2016 in terms of footprint breadth and depth, so as to provide reference for cultivated land protection, ecological compensation and even coordinated regional ecological-economic development. The results show that from 2009 to 2016, the ecological footprint breadth of cultivated land in Beijing-Tianjin-Hebei region was generally low and the footprint depth was generally high, and the ecological footprint depth of cultivated land in the region as a whole tended to increase, except for Zhangjiakou and Chengde, which were able to achieve self-sufficiency in flow capital, 85% of the cities showed the phenomenon of depletion of cultivated land flow capital and intensification of stock capital depletion. After 2010, the overall Gini coefficient of the ecological footprint of cultivated land in the Beijing-Tianjin-Hebei area was less than 0.4, and the use of natural capital from cultivated land was relatively balanced. The study concludes that under the strategic role of Beijing-Tianjin-Hebei integration and collaborative development, the equity of natural capital utilization of cultivated land in each city in the Beijing-Tianjin-Hebei region has been improved, but the level of creating and utilizing natural capital flows of cultivated land still needs to be improved, and ecological protection of cultivated land needs to be further strengthened; the excessive depletion of natural capital of cultivated land caused by agricultural production can be used as a reference basis for cross-regional ecological compensation of cultivated land, thus supporting the ecological value of cultivated land. Over-consumption of natural capital from agricultural land caused by agricultural production can be used as a baseline for interregional ecological compensation of agricultural land, thus supporting the realization of the ecological value of agricultural land.

Global biodiversity is in crises. Recognition of the scale and pace of biodiversity loss is leading to rapid technological development in biodiversity science to identify species, their interactions, and ecosystem dynamics. National and international policy developments to stimulate mitigation and remediation actions are escalating to meet the biodiversity crises. They can take advantage of biosurveillance “big data” as evidence for more sweeping and impactful policy measures. The critical factor is translating biosurveillance data into the value-based frameworks underpinning new policy measures. An approach to this integration process, using natural capital accounting frameworks is developed.

Within a sustainable supply chain management approach, this study investigates strategic issues that can either favour or impede the implementation of natural capital accounting. Among other things, the originality of such consists of the joint consideration of sustainability, operational, and reputational issues, forging the link between measuring the use of natural resources and preserving companies' intangible capital. More specifically, through two scenario-based behavioural experiments with a total sample of 252 consumers in the UK, we analyse how information regarding the use of water (i.e., water footprint) affects firms' reputation (i.e., trust, attitude towards the firm, word-of-mouth, brand avoidance). We also investigate consumers' perceptions when companies seek to (1) increase the transparency of their consumption of natural capital (i.e., a conceptual proxy for the adoption of natural capital accounting) and (2) rationalize this consumption (i.e., a goal aligned with the objectives of natural capital accounting). The method employed is adequate as it allows the detection and measurement of respondents' perceptions of specific issues presented in the different scenarios. The choice of the UK as the setting reflects the importance of the country in the fashion industry, as it has a solid consumer base and is home to several international fashion brands. The supply chain management scope refers to the link between water consumption (which often takes place in the production of raw materials (e.g., cotton) and in transformation processes (e.g., fabric dyeing, tanning) by suppliers), fashion brands' reputation, and consumers' perceptions, with the joint consideration of these four phases sustaining the delimitation. Building on the premises of the resource-based view and signalling theory, the study is contextualized in the fashion industry as its current production levels require a significant consumption of natural resources, particularly water. Results show that, while the publication of the water footprint may damage companies' reputations, initiatives aimed at increasing transparency and reducing environmental impact can reverse these losses to a large extent. In this sense, the study advances the idea that, despite possibly presenting undesirable consequences at first, the adoption of natural capital accounting can be beneficial to firms later on, with reputational gains representing important strategic incentives. Further research in different countries and industries will be beneficial to assess the possible context impact on our results. [ABSTRACT FROM AUTHOR]

Natural capital accounting is an emerging approach to help address the challenge of preventing further biodiversity loss while sustainably providing resources for a growing human population. It requires an effective and robust framework for quantifying natural capital on farms. State and transition models (STMs) have been used extensively to describe the range of observable condition states for an ecosystem and the processes that maintain states or drive shifts between them. Current STM frameworks have limited capacity for use in modified landscapes and therefore are currently unsuitable for many applications of natural capital accounting. We aimed to develop an extended STM framework, using 'Eucalyptus woodlands of south-eastern Australia' as an example, to categorise ecological condition states unambiguously in high-resolution across whole farms. We used synthesised current literature, consulted experts, and conducted field visits to develop and refine the STM. We developed an STM that defines 35 condition states observable on farms in south-eastern Australia, ranging from 'reference' condition woodlands that have experienced minimal disturbance to highly modified derived grasslands and crops. The STM framework can be used to assign an ecological condition state to all areas on a farm. The STM described here marks a significant advancement in farmland ecology and natural resource management. Using this tool and adapting the states and thresholds to fit other vegetation types, all ecosystems on a farm can be categorized based on ecological condition, which can then be mapped across whole farms. Ecosystem state mapping can be used to guide restoration actions, management trade-offs and track changes in ecological condition over time. These maps can be used to quantify natural capital on farms to form the basis of natural capital accounts and infer ecosystem service provision. This framework will facilitate biodiversity credential certification and help enable farmers to access price premiums and restricted markets, and ultimately, will enhance biodiversity conservation in farmlands while also enabling appropriate decisions regarding continuing agronomic use. [Display omitted] • A new state-and-transition model was developed to categorise the ecological condition of all areas of a farm. • The STM can be used to map the natural capital of farms. • Natural capital accounts can be generated at the farm-scale, based on the STM framework. • The STM framework is flexible and adaptable to other regions and sectors. • Natural capital accounting will help promote sustainable farming practices. [ABSTRACT FROM AUTHOR]

Natural capital accounting requires exchange rather than welfare values, but lack of data and standards have encouraged practitioners to use different approaches (e.g. simple lookup table vs spatial modeling approaches). In this paper, we demonstrate how choice modeling data can provide simulated exchange values which are more robust than simple (fast track) valuation approaches for natural capital accounting. A survey of East of England residents collected the preferences for saltmarsh management and simulated exchange values, coherently linked with the ecosystem conditions. This approach is more informative for environmental local planning purposes. We claim that expanding the set of tools available for natural capital accounting can enhance management of ecosystem services and policy decision making. [ABSTRACT FROM AUTHOR]

Accounting for ecosystems is increasingly central to natural capital accounting. What is missing from this, however, is an answer to questions about how natural capital is distributed. That is, who consumes ecosystem services and who owns or manages the underlying asset(s) that give rise to ecosystem services. In this paper, we examine the significance of the ownership of land on which ecosystem assets (or ecosystem types) is located in the context of natural capital accounting. We illustrate this in an empirical application to two ecosystem services and a range of ecosystem types and land ownership in Scotland, a context in which land reform debates are longstanding. Our results indicate the relative importance of private land in ecosystem service supply, rather than land held by the public sector. We find relative concentration of ownership for land providing comparatively high amounts of carbon sequestration. For air pollution removal, however, the role of smaller to medium sized, mostly privately owned, land holdings closer to urban settlements becomes more prominent. The contributions in this paper, we argue, represent important first steps in anticipating distributional impacts of natural capital (and related) policy in natural capital accounts as well as connecting these frameworks to broader concerns about wealth disparities across and within countries. [ABSTRACT FROM AUTHOR]

Pilot monetary ecosystem accounts were compiled for KwaZulu-Natal Province, South Africa, in order to highlight any data, methodological or process issues in their compilation and to contribute towards charting a strategy for ecosystem accounting. The Province is highly diverse, with eight biomes, large proportions under communal, private and state tenure, globally important biodiversity, variable landscape condition and encompassing catchment areas of nine river systems. We accounted for the supply and use of wild biomass, reared animal production, cultivation (including silviculture), nature-based tourism, property value, carbon storage and sequestration, pollination, flow regulation (maintenance of base flows), sediment retention, water quality amelioration and flood attenuation. For each ecosystem service, we devised conceptually valid methods that were suitable for the existing data to produce values consistent with the System of National Accounts. These were then summed to estimate total annual flows from each 100 x 100 m spatial unit and its asset value. Challenges encountered included lack of data on smallscale and subsistence production, mismatches in the classification of landcover and government production statistics, unreliable measures of ecosystem condition, the large scale of hydrological modelling and lack of centralised data organisation relating to hydrological services. There was heavy reliance on past empirical research and on global datasets. The combined value of the annual flow of the ecosystem services valued was R52.5 billion in 2011, equivalent to 12% of the provincial GDP. However, the values of many of the services have decreased over the accounting period, due to a combination of changes in demand and ecosystem condition. Asset value was undermined to some extent by unsustainable use of provisioning services. Some areas will require careful messaging, particularly in regard to the contentious issue of valuing carbon retention and the use of exchange values rather than welfare values that are used in economic analysis. [ABSTRACT FROM AUTHOR]

In recent decades, a concerted effort has been made to define methodologies and frameworks to account for the contribution of the natural environment to national wealth and its role in fulfilling societal and economic needs. The linkages between natural capital and human well-being are even stronger in low-income and vulnerable countries, such as Small Island Developing States (SIDS). This is particularly true for coastal and marine ecosystems and for SIDS, considering that a large portion of their population live along the coast. Therefore, SIDS would greatly benefit from systematically assessing and recording the condition and services provided by marine and coastal habitats in ecosystem accounts. Applications of accounting frameworks to marine and coastal habitats, however, are still under development. Through a case study in the Caribbean Island of Grenada, we explore SIDS readiness to develop marine and coastal natural capital accounts, in particular framed within the guidelines of the United Nations System of Environmental-Economic Accounting Ecosystem Accounting (SEEA-EA). We find that, while data to compile accounts of ecosystems extent exist and may be suitable for accounting, data related to ecosystem condition are very limited. Data gaps significantly constrained the potential approaches to estimate the ecosystem services supply provided by the coastal and marine environment in our natural capital accounts for Grenada. Our case study investigation brings us to suggest initial steps for the development of ecosystem accounts in SIDS, including potential methodologies and approaches and discuss how developing a set of coherent accounts can play a key role in incorporating nature into decision-making. [ABSTRACT FROM AUTHOR]

The United Nations System of Environmental-Economic Accounting Ecosystem Accounting (SEEA EA) framework is the international standard for ecosystem accounting. To date, application of SEEA EA has been predominantly at large scales, usually at landscape and national levels. However, many environmental management decisions are taken locally, in site-specific contexts. While the use of SEEA EA continues to develop at all scales, there is currently no widely endorsed methodology for employing SEEA EA at local scales, such as the site level. We present a methodology for developing site-level ecosystem accounts, describing the important decisions at each step of the process. We also provide two case studies that demonstrate the context-dependent nature of the decision-making process of ecosystem accounting at small scales. The two major challenges for site-level accounting are stakeholder engagement and data availability. As the use of SEEA EA continues to increase in policy and decision-making processes worldwide, there is a need for local-scale case studies that adapt this methodology across a broad range of contexts. Our case studies provide some of the first published examples of the application of SEEA EA at the site level and are intended to promote consistent implementation of ecosystem accounting across scales. • The SEEA EA framework is useful for making, and monitoring the impacts of, management decisions on small sites. • We provide a methodology for site-level ecosystem accounting. • Site-level ecosystem accounting is context-dependent with each site requiring a tailored approach. • Stakeholder engagement is critical for developing site-level accounts that accurately describe ecosystem assets. • Data availability can be an obstacle for developing site-level ecosystem accounts. [ABSTRACT FROM AUTHOR]

Rangeland conditions in the Lesotho highland dam catchment areas is important for local livelihoods and regional water supply. We investigated changes in land cover and condition from 1991 (before construction) to 2013, using Landsat imagery. The Normalised Difference Vegetation Index (NDVI) decreased in the catchment areas, while increasing within two protected areas. NDVI decreases were greatest close to the dams and in the high altitude summer grazing areas. Land cover maps were generated for 1993, 2005 and 2013, using structural vegetation classes, as well as categories of grassland based on NDVI. High altitude areas were characterised by grasslands changing to lower NDVI categories, indicating overgrazing in climax sourveld grasslands. Mid-altitude areas were characterised by grasslands changing to higher NDVI categories and increases in woody vegetation, indicating overgrazing in Sweetveld. At lower altitudes, the increase in cultivated areas suggested disproportionately high population growth in the catchment areas. The results suggest that there has been widespread degradation that appears to be more as a result of overgrazing than climate change. The study demonstrates the importance of using a combination of land cover, NDVI and field data in assessing degradation. Natural capital accounting methods provide a useful framework for documenting, monitoring and understanding changes in ecosystem condition. [ABSTRACT FROM AUTHOR]