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Low Angle View Of Pine Trees In Forest

Valuing Natural Capital: Is it on Your Radar?

This publication outlines key conceptual considerations, methods, tools and resources for the valuation of natural capital. Learn how the CPA can help public and private sector organizations to account for nature.

There is a convergence of efforts to have nature reflected on balance sheets and performance reports. In 2022, the International Public Sector Accounting Standards Board issued a Consultation Paper on Natural Resources aiming to develop guidance for the recognition, measurement, and presentation of natural resources by public sector entities. Concurrently, a consortium of over 70 organizations from across Canada led by the Intact Centre for Climate-Resilient Infrastructure, KPMG and the Municipal Natural Assets Initiative issued a call to Canada’s Public Sector Accounting Board for recognition of natural assets in accounting. And lastly, during the UN Biodiversity Conference in Montreal in December 2022, the International Sustainability Standards Boards announced that it will seek feedback and undertake research on disclosure rules for biodiversity and ecosystems in the private sector.

With nature scoring high on the agenda of policymakers, it is important for the CPA to learn about approaches and methods available to assign economic value to the many benefits that natural resources, natural assets, natural infrastructure, biodiversity and ecosystems deliver to society, the economy and the environment. This CPA Canada publication outlines key conceptual considerations, methods, tools, and resources for the valuation of natural capital and highlights how CPAs can help organizations lead the way in accounting for nature.