Resource description:
This paper presents a conceptual framework for natural capital accounting that adapts double-entry financial accounting principles to ecological assets and ecosystem services flows, enabling businesses to report transparently and consistently on their interactions with nature. The framework proposes three structured statements—Natural Capital Balance Sheets, Natural Capital Income Statements, and Ecosystem Change Statements—that track stocks of natural capital and ecosystem service flows in a manner analogous to financial reporting. Aligned with the UN System of Environmental-Economic Accounting (SEEA) framework, this approach provides decision-makers, investors and lenders with consistent, comparable information on the state and trend of a business’ natural capital assets, and progress towards Nature Positive goals.
Author/Contact:
Smith, G., Horner, C., Ascui, F. et al. (2026) “Nature on the balance sheet: Accountability for Nature Positive,” Methods in Ecology and Evolution, pp. 1–16 (early online). https://doi.org/10.1111/2041-210X.70193