What can Natural Capital Statements tell us beyond ESG data?

Natural Capital Statements combine a natural capital income statement (or environmental profit and loss) and natural capital balance sheet. Put together in Natural Capital Statements, they can show whether a company makes a positive net contribution to natural capital, and whether its dependency on natural capital is sustainable.

The statements were developed during work with brokerage firm Kepler Cheuvreux in support of the Natural Capital Protocol Finance Supplement. They are demonstrated using the publicly available reporting data from SCA, a listed company in forestry sector in Sweden.

Natural Capital Statements is the complete natural capital information package for investors about a company. They show whether the company is sufficiently prepared for future risks and opportunities like climate change, water availability and others. They use quantitative biophysical and monetary valuation data and can be run under different future scenarios.

Natural Capital Statements also respond to the recommendation by the Task Force on Climate-Related Financial Disclosures that companies should understand the impacts of climate related risks on their income statements and balance sheets. 

View the summary case study demonstrating the Natural Capital Statements. The full version of the case study is available in “Bigger than Carbon: a systematic review” by Kepler Cheuvreux.