This peer-reviewed paper examines how natural capital accounting (NCA) can address the growing expectation on businesses to measure, manage and disclose their nature-related risks and opportunities, particularly in alignment with TNFD recommendations.
The paper distinguishes between national NCA (guided by the UN System of Environmental-Economic Accounting framework) and corporate NCA, showing how the two can be mutually reinforcing. The paper includes a detailed case study of Forico, Tasmania's largest private forestry company, which has produced annual NCA reports since 2020 and an integrated TCFD/TNFD disclosure. Authored by 12 researchers from institutions including the TNFD Secretariat, ANU, ERM Melbourne, Forico, Yale and Stanford, the paper also identifies key barriers to broader NCA adoption by business. This includes data access gaps, audit and assurance considerations, and cost and incentive challenges.
About the Publisher
The Royal Society is the independent scientific academy of the UK, dedicated to promoting excellence in science for the benefit of humanity. It is a Fellowship of many of the world's most eminent scientists and is the oldest scientific academy in continuous existence. The Royal Society supports scientists at various stages of their careers, organises conferences, publishes journals, and provides independent advice to government and international bodies on matters of science.
Authors of this paper: Jane Carter Ingram; Emily J. McKenzie; Kenneth J. Bagstad; John Finisdore; Rayne van den Berg; Eli Fenichel; Michael Vardon; Stephen Posner; Marta Santamaria; Lisa Mandle; Richard Barker; James Spurgeon
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