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Natural Capital FAQs
WHAT IS NATURAL CAPITAL?
Natural capital is an economic metaphor for nature; a concept that frames the world's renewable and non-renewable resources like plants, animals, air, water, minerals and soils as assets or stocks that combine to yield a flow of benefits to people.
WHAT IS THE NATURAL CAPITAL APPROACH?
The Natural Capital Approach involves measuring and valuing natural capital assets. Values can be expressed in qualitative, biophysical and/or monetary terms. The approach then uses those values to reveal how natural capital assets deliver a flow of benefits to society and the economy. These natural capital assessments or natural capital accounts can be used to support more sustainable decision-making.
WHAT IS A NATURAL CAPITAL ASSESSMENT?
Natural Capital Assessment describes a variety of methodologies for measuring and valuing natural capital assets and ecosystem services, and using these assessments to inform decision-making. For example, some businesses have assessed the degree to which their activities depend on natural capital and produced an Environmental Profit and Loss Statement like Kering's.
WHAT IS A NATURAL CAPITAL ACCOUNTING?
Natural Capital Accounting is a system for organising information about natural capital assets and ecosystem services. The aim of organising this information is to help decision-makers understand how the environment interacts with the economy. Natural capital accounting can be applied at national, regional, organisational or spatial scales. The UN has a standard for this type of accounting, called the SEEA, or the System of Environmental-Economic Accounts.