11 December 2014, Radisson Blu Hotel Schiphol...Dec 11, 2014 · The Natural Capital Protocol project consists of: –Natural Capital Protocol (generic, across all sectors) –A high-level

11 December 2014, Radisson Blu Hotel Schiphol

Copyright 2014 True Price Foundation. All rights reserved.

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But do use it to tweet! #truepriceconference @true_price

We kindly ask you to put your phone on silent

Founder Off the Map WorldconnectorFormer initiator of the Planet Me program at TNT


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Time Topic Speakers

10.00-10.15 Key note on True Value Herman Mulder

Adrian de Groot Ruiz (True Price)

10.15-10.30 Key note on Transparency Rob van Brouwershaven (Dutch Ministry of Economic

Affairs)

10.30-11.15 Pitches and discussions

Green Deal

1. Mark van Oorschot (PBL)

2. Patrick van Bael (DSM)

3. Frank Hoekemeijer (Heijmans)

11.15-11.30 Coffee / tea break

11.30-12.30 Pitches and discussions

transparency in

international context

1. Geoff Richards (Defra UK)

2. Mikkel Stenbaeck Hansen (EPA, Danish Ministry of

Environment)

3. Strahil Christov (EU Business and Biodiversity (B@B)

Platform, EC)

4. Richard Spencer (ICAEW)

5. Liesel van Ast (UNEPfi)

12.30-12.50 Presentation of NCC

Protocol Project

Daan Wensing (IUCN NL)


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Chairman True Price, former chairman and current board member GRI



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Executive Director True Price


Market for impact information

Demand for impact

information

Supply of information

Monetized impact

data

Most efficient way to aggregate

information

Inte

rna

liza

tio

n o

f e

xte

rna

liti

es D

eclin

e o

f info

rma

tion

costs


Make invisible visible Improve decision making Language of Triple-P economy

People Planet

Profit


Multi-stakeholder

Open source

Accessible to general public

Creating business value

Green washing

Lack of legitimacy

Divisive

Sound methodology

Netting wrong things


Increasing benefits

Reducing costs

Economic Environmental Social


CurrentProduct

TargetProduct

TruePrice

RetailPrice

TruePriceGap

Socialcosts

Environ-mentalcosts

• Air• Soil• Water• Waste

POLLUTION

RESOURCE USE

• Ecoystems• Water• Materials• Energy

• Local communities• Supply chain• Law & taxes• Consumers

SOCIETY

WORKERS

• Income• Rights at work• Health & Safety

Based, where possible, on existing methods and frameworks.


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Director Nature and Biodiversity, Dutch Ministry of Economic Affairs

11 december 2014

Transparency

The natural way forward

Rob van Brouwershaven

Director Nature & Biodiversity

Ministry of Economic Affairs

11 december 2014

Ministerie van Economische Zaken14

“Nature’s role in society and in the economy can and must be stronger.

By treating nature in a different way we can do nature and ourselves a great service. Nature and the economy can reinforce one another.” Sharon Dijksma

Minister for Agriculture & Nature

11 december 2014

Ministerie van Economische Zaken15

Transparency: a lot is going on…


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Introducing…

Mark van Oorschot (Senior researcher international policy for biodiversity, PBL)

Patrick van Bael (Senior advisor, Corporate Operations Sustainability, DSM)

Frank Hoekemeijer (Manager Sustainability, Heijmans)

PBL andNatural Capital

Monitor Sustainability

State of the Environment

TEEB program

Measuring and reporting

How do we measure progress?

Find the balance between growth and green

Green Deal Transparancy - 11dec14

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National Sustainability Assessments

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Netherlands Sustainability Monitor

For government and society, co-produced CBS and CPB

Dashboard for green growth and resources

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State and trends

Policy target for NC: conserve and usesustainably

Indicator use of services

– Supply and demand not in balance

– Substitution technique

– Foreign dependency

– Innovation necessary in public and private policy

State of the Environment 2014

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TEEB-NL Program

NKN - Natuurlijk Kapitaal Nederland

Make Nature’s values Visible and Capture in decision making

– What possibilities for nature based solutions?

– Opportunities for ecosystem services

– Who bears costs, who enjoys benefits

– Niche market or possiblities for upscaling

– Role of different actors

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Private sector sustainability reporting

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Trends in Sustainability reporting

Strong increase – public and private

Many company initiatives , different angles

– For shareholders and investors (SASB)

– Broad responsibility (GRI)

Challenges

– Harmonization PP

– Private and public targets - financial en non-financial

– Address complex issues - biodiversity and NC

Role of reporting

– Improve company-performance

– Contribute to societal targets

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www.pbl.nl

Thematic sites

- MDN

- NKN

twitter @maartenhajer

http://www.pbl.nl/

Natural Capital

DSM

Patrick Van Bael

Contouren van MorgenOur ‘Sustainable construction plan’ for 2020Drives our innovations to make a differenceFully integrated approach to business, innovation and sustainability

100% Energie

leverend

100% Ruimtelijke

kwaliteit

100% Tevreden

gebruikers

100% Recyclebaar

100% match Heijmans -

Medewerkers

Trendsettend in

Technologie

WAT

HOE

WAAROM


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Description

Impacts

- Heijmans takes up a pioneering role in the new True Price Procurement Program

- Aim: facilitate a stakeholder consultation regarding the integration of social and environmental costs in (public) procurement.

- The aim of this consultation is to define:a.) the process towards integrating monetized social and environmental impacts in (public) procurement, and b.) how the content of monetizing social and environmental impacts for procurement decisions can best be integrated.

- All external costs of environmental and/or social impacts that are linked to the project that is procured and are deemed material to various stakeholders in the procurement process

- All indirect economical, societal or natural added value of the products and services that are procured and deemed material.


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Opportunity

- Integrate societal externalities in the mainstream public procurement decision making

- Create insight in material externalities of business activities and projects- Monetize the (indirect) added value of projects, products and/or services- Build on the existing system and knowledge infrastructure of MKBA (social

cost-benefit analysis)- Renewed European Guideline on Public Procurement also calls on policy

makers to integrate objective criteria on social and environmental externalities in procurement decisions by April 2016

- Consensus on an objective method for monetizing externalities: Approach: open dialogue with relevant parties with experience and

expertise will facilitate that process- Degree to which already executed projects can be used and shared to further

define the method Approach: anonymizing the results and sharing relevant knowledge

Challenge


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Introducing…

Mikkel StenbaeckHansen (Deputy Head of Department, Danish Environmental Protection Agency, Danish Ministry of Environment)

Richard Spencer (Head of Sustainability, ICAEW)

Geoff Richards (Head of Biodiversity Resourcing and Ecosystems Strategy, Defra UK)

Strahil Christov (Policy Officer, EU Business and Biodiversity (B@B) Platform)

Liesel van Ast (Program Manager, Natural Capital Declaration, UNEPfi)

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Richard Spencer (Head of Sustainability, ICAEW)

Pitches and discussions transparency in international context

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Valuing nature in business

The Natural Capital Protocol

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The Natural Capital Protocol

In order to help business understand the value of nature, the

Natural Capital Coalition has initiated a project to develop the

Natural Capital Protocol.

Foto-art: Classlagboom.nl

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The Natural Capital Coalition is:

http://www.corporateecoforum.com/index.php

http://www.corporateecoforum.com/index.php

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Why does business need to understand Natural Capital

Businesses that fail to adapt in a world of increasingly scarce resources will

lose competitiveness as the true value of these resources is realized through

tighter government regulation, consumer choice and limited supply.

Business Benefits:

• Reduce Risk

• Cut Costs

• Enhance Brand Reputation

• Generate Revenue


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Deliverables so far, led by NCC and its members

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THE NATURAL CAPITAL PROTOCOL PROJECT

Work in Progress

38

The Natural Capital Protocol project consists of:

– Natural Capital Protocol

(generic, across all sectors)

– A high-level guide for

executives and

stakeholders

– Business engagement and

stakeholder consultation to

shape the Natural Capital

Protocol and test it through

a selection pilot studies

– Specific sector guides for

food/beverage and apparel


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Who are working together in the project?

• Natural Capital Protocol• Sector guides for Food &

Beverage + Apparel

• Business engagement

• Pilot testing

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For whom is the NCP being developed?

• The Protocol will be written primarily for a business user, in particular

program managers in sustainability, environment, operations or

accounting.

• The short, high-level guide will be written for senior management

• Other users may include investors, NGOs, consultants, governments

Fo

to-a

rt: Cla

ssla

gb

oo

m.n

l

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Scope: internal decision-making vs. external reporting

• The Protocol should primarily help internal decision-making vs. external

reporting & disclosure, i.e. it will not be a reporting standard.

• However:

– Transparency will most likely be included as one of the principles of

the Protocol

– The Protocol can provide recommendations of how best to disclose

results emerging from the Protocol

– A section / annex of the Protocol could provide the user with guidance

of how the results could feed into existing & emerging reporting

frameworks, e.g. GRI, SASB, <IR>, and CDSB

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Scope: Defining Natural Capital for use in Businesses

Converging towards Natural Capital to at least include a broader

environmental definition:

– Biodiversity and ecosystem services, incl. naturally-sourced materials

– Other environmental impacts - GHGs, water, waste, air/water

pollution, noise, odor

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Scope: corporate / value chain / product / site

The NCP should provide a high-level assessment at multiple levels, using

three dimensions of scope:

1. Corporate scope, incl. site, product, business unit, whole company,

each of these can be applied to any value chain scope;

2. Value chain scope (Cradle to Cradle/Cradle to Gate/Cradle to Grave)

3. Typology of impact/dependency scope

45

Scope: qualitative, quantitative, monetary

• Different users will use the NCP

in different ways.

• The NCP will cover qualitative,

quantitative and monetary

valuation, with a particular

emphasis on quantitative and

monetary approaches.

• We acknowledge that some non-

monetary metrics (e.g. nutritional

value) can also be particularly

helpful in decision-making.


46

CONTENT OF THE PROTOCOL ITSELF

47

Introduction Impacts and dependencies

• High-level inventory

• Standard framework

(pathways) for identifying

impacts and dependencies, incl.

resource use, changes in env.

quality/quantity

• Principles of the NCP

• Definitions, incl. natural capital

• Business case; opportunities

and risks.

48

Scope Response

High-level assessment:

1. Corporate scope

(whole company, site,

product, business unit…)

2. Boundary

(cradle to cradle/cradle to

gate/cradle to grave)

3. Typology of impact/dependency

• Different users will use the NCP

in different ways.

• Qualitative, quantitative and

monetary valuation.

• Non-monetary metrics

49

Assess Validation

• Internal & external costs and

benefits

• Relevant assessment

approaches according to identified

needs and boundaries

• Additional guidance

Overall quality control, incl.

• Fitness check

• Consistency check

• Accuracy check

50

Uses Embedding

Guidance on how measurement and

valuation outputs can be used in

various business applications, e.g.

• Internal / external uses

• At different scopes: corporate /

site / project.

Note: could be cross-cutting

throughout NCP, i.e. not chapter on its

own

• Suggestions for how companies

can embed the NCP within

company processes and

procedures, in the long term

51

TIMELINE AND HOW TO GET INVOLVED

52

Pilot Testing

Timeline and process

2014 2015 2016

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Key Engagement Dates

• Call for Evidence/ Methodologies to be

included in the Natural Capital Protocol

• Business Engagement commences

• First draft of Natural Capital Protocol

• First draft of Sector Guides

• NCC members Engagement on First Draft

• Business pilot testing commences

• Full Public Consultation

• Release of Natural Capital Protocol

Fall 2014

Spring 2015

Fall 2015

March 2016

54

How can you be involved?

Sign up at

www.naturalcapitalcoalition.org

Send an e-mail to

[email protected]

If you are a business and are

interested to shape and test the

Natural Capital Protocol, please

contact:

business-engagement@

naturalcapitalcoalition.org@NatCapCoalition

http://www.naturalcapitalcoalition.org/

mailto:[email protected]


https://twitter.com/NatCapCoalition

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Thank youFor more information: www.naturalcapitalcoalition.org

Green Deal and True Price Conference on Natural and Social Capital

EU Business and Biodiversity Platform Year 1 Output

Strahil Christov, DG Environment Amsterdam, 11/12/2014

1. EU Biodiversity Strategy to 2020

2. Phase 2 of the EU B@B Platform

3. Workstream Outputs and next steps for 2015

Content

EU Biodiversity Strategy

to 2020

2050 Vision

2020 headline target

1Fully

implement

nature

legislation

2Maintain &

restore

ecosystems &

services

3Increase

contribution of

agri. & forest. to

biodiversity

4Achieve

Maximum

sustainable

yield

5Combat

Invasive Alien

Species

6Help avert

global

biodiversity

loss

Actions / Monitoring

6 Targets:

EU Biodiversity Strategy to 2020

Cross-cutting issues: Financing, Involvement of the private sector

60

Target 2

By 2020, ecosystem services are maintained and

enhanced through the establishment of Green

Infrastructure and the restoration of at least 15% of

degraded ecosystems

Action 5: Improve knowledge about ecosystems and their

services in the EU

Action 6: Set priorities to restore and promote the use of

Green Infrastructure

Action 7: Ensure no net loss of biodiversity and ecosystem

services

Roadmap to Resource Efficient Europe milestone

Decision of the European Parliament and of the Council (7th EAP);

Target 2 links in the Resource Efficiency Agenda and the 7th EAP

By 2020 natural capital and ecosystem services will be properly

valued and accounted for by public authorities and businesses.

An appropriate mix of policy instruments can enable businesses and

consumers to improve their understanding of the impact of their activities

on the environment and to manage the impact. Such policy instruments

include economic incentives, market-based instruments, information

requirements as well as voluntary tools and measures to complement

legislative frameworks and engage stakeholders at different levels.

Phase 2 EU B@B Platform

• Communication and coordination• European and International initiatives• Good-practices of members

• Umbrella function in support of MS Actions• Support national platforms (existing + new)

• Forum for exchange on strategic issues with Business• Bureau of Advisors

• Develop workstreams linked with actions under the EU Biodiversity Strategy• Natural Capital Accounting• Innovation for biodiversity and business opportunities• Financing for biodiversity

Objectives of EU B@B Platform

• Membership• Over 170 members today (+20 MNEs, +70 SMEs)

• Dedicated Website and Newsletter• Main communication tool• Exchanges via emails

• Annual Conference• Present outputs of work• Showcase company action

• Bureau Meetings• Discuss strategic aspects of the Platform's work

Operational Aspects

• Natural Capital Accounting Workstream• Decision framework and principles for choosing company natural capital accounting

(NCA) methodologies• Identify best practice guidance and tools available for each methodology

• Innovation Workstream• Showcase innovative business models and business innovations for biodiversity

Identify priorities for further research• Establish links with Natural Capital Financing Facility

• Financing Workstream• Identify and profile biodiversity investment opportunities • Identify funds and financial instruments for biodiversity• Identify key actors in the financial sector championing integration of biodiversity into

investment decisions (work done by NCD)

Workstream Output Year 1

NCA Workstream Output- Approaches & questions

No. Category NCA Approaches

1

Assessments – Decision

making

Dependency

2 Impacts

3Risks/opportunities &

materiality

4Valuation (full cost

accounting)

5Both

Inventory

6 Indicators

7

Set of accounts -Reporting

Env P&L Account

8 Env Balance Sheet

9Env Financial Accounting – Env components

10Env Financial Accounting

- Site manage costs

11Integrated Financial NCA &

reporting

No. Potential questions

1 Business aspect (scope)?

2 Relationship to NC?

3 Proposed use?

4 Component of NC/environment?

5 Form of measurement?

6 Whose perspective?

7 Resources available?

Summary table of approaches

Questions for decision-matrix

NCA Workstream– Decision-matrix tool

1 Dependency

2 Impacts

3Risk/opportunity&

materiality

4Valuation(fullcost

accounting)

5 Inventory

6 Indicators

7 EProfit&Loss

8 EBalanceSheet

9EFinancialAccounting-Envcomponents

10EFinancialAccounting-Sitemanagementcosts

11IntegratedFinancialNCA&reporting

Type

ofa

ssessm

ent-

forde

cision

-making

Both

Seto

faccou

nts-for

repo

rting

Cat-

egoryNo. NCAApproach

Non-living

NatCapital

(NLNC)

(abiotic-

minerals,

windenergy)

Other

environ-

mental

impacts

i)

Assets/

stocksof

LNC(i.e.

ecosystems,

plants,animals,

genes)

ii)

Flowsof

benefits

fromLNC

(i.e.

ecosystemservices)

iii)

Impacts

onLNC

(on

assets&

benefits)

iv)

Depen-

dencieson

LNC

(assets&

benefits)

v)

Impacts&

dependencies

onNLNC

(abiotic)

assetsandflowsof

benefits

v)

Otherenv

impacts

(e.g.

pollutants/

residualssuchas

GHGs&

waste)

i)

Qual-

itative

(e.g.

high/

med/low)

ii)

Quant-

itative

(physical

units/

indices)

iii)

Monetary

values

(impacts,

depend-

enciesetcinmoney

terms)

iv)

Expend-

itures

(only

actual

amountsofmoney

paid)

i)

Stake-

holder/

Society

(public/

externality)values

ii)

Share-

holder/

company

(financial

/private)values

2 2 2 2 1 2 1 1 2 2

2 2 2 2 2 2 1 1 2 2 1

2 2 2 2 2 2 2 1 1 2 2 1

2 2 2 2 2 2 1 2 2 2 2 1

2 2 2 2 1 1 2 1 1 2 1

1 1 2 1 2 1 2 1 1 2 1 2

2 2 2 1 2 2 1

2 2 1 1 1 2 2 1

1 2 1 2 1 2 1

2 1 2 1 2 1

2 2 2 2 2 2 2 1 2 2

7)Towhat

extentdoyou

wanttolimit

resourcesto

undertakethe

NCA?

4)WhatcomponentofNC&theenvironmentareyoumost

interestedinassessing?

Livingnaturalcapital(LNC)

(i.e.biodiversity)

6)Whose

perspectiveareyou

mostinterestedin?

5)Whatformofmeasurementare

youmostinterestedinconsidering?

Use screening function to

narrow down approaches

Key outcomes – Decision-matrix tool

So, if interested in:

• The flow of NC benefits (i.e. ecosystem services)

• Monetary values

• Shareholder/company perspective

• Limited resources for study

Select

‘Dependency

Assessment’

NCA Workstream– Decision-matrix tool

Innovation Workstream output• 21 Case studies:

• All identified innovations/new business models

• Around half identified research needs

• Most identified barriers and opportunities to foster the innovation/model

• Innovation case studies for:

• Green infrastructure

• Ecological restoration

• Tools and standards for NC&ES accounting and management

• Biodiversity offsetting

• Knowledge platforms

• Recycling

• Ethical investment

Financing Workstream Output• 18 submissions, resulting in 15 case studies

• Biodiversity Investment OpportunitiesSinergiae Ambiente: adding value through certification.

CDC Biodiversité: exploring long-term opportunities for biodiversity offsets.

CDC Biodiversité: developing payments for ecosystem services in the water sector

SAR Consult : supporting catchment-scale actions.

European Green Roof Association: maximising the potential of urban green roofs.

Green4Cities: securing new forms of finance for urban Green Infrastructure.

Ecoacsa: growing the market for biodiversity offsets in Spain.

EDF: exploring innovative financing mechanisms for biodiversity & ecosystem services

• Biodiversity Funding Mechanisms The Nature Conservancy: tapping impact investment for natural capital.

PIRAEUS Bank Group: providing targeted conservation finance for Natura 2000.

VCA Platform: Investing in verified conservation

• Finance Sector Champions Sumitomo Mitsui Trust Holdings: pioneering pro-biodiversity investment products.

CDP: mobilising shareholders for pro-biodiversity investment.

WWF China: integrating sustainability in the Chinese financial sector.

Community of Practice Financial institutes & Natural Capital (CoP FINC): building financial sector sustainable investment capacities.

Next steps - NCA workstream in 2015

1. Simplify guide & tool

2. *Review available guidelines & tools

3. *Map business NCA applications to government/policy use

4. Explore reporting on company expenditures for managing NC

5. Investigate NC & valuation linkages in LCA

6. Explore concept of balance sheet approaches to NCA

7. Investigate investment-rating agency perspective on NCA

*Most popular for FMs

• More exhaustive review of innovation for B@B

• More detailed analysis of ‘most promising opportunities’ for no net loss

• Key regulatory developments needed at EU level for B@B innovations

• Social enterprise models for business and biodiversity in the EU

• How to develop PPP & other partnership models to scale-up most promising innovations for B&B

• Key standards and tools that could be developed at EU level to foster most promising innovations for B@B

Next steps - Innovation workstream in 2015

Next steps – Financing workstream in 2015

• Exploring opportunities provided by EU finance (Natural Capital Financing Facility, Horizon 2020, other EU grants/financial instruments)

• More detailed mapping of financing initiatives and instruments for biodiversity in the EU (funding gaps, needs, opportunities, enabling actions

• More detailed analysis of financial needs and opportunities in key areas of biodiversity action (certified products, offsets, GI, PES, biodiversity friendly businesses)

• Analysis of key tools and enabling actions at EU level to integrate biodiversity into financial decisions – e.g. information, guidance, standards, collaborative approaches, common EU standards and guidelines

Vote online!

• Number of businesses engaged• Better sector balance and geographic balance

• Establish links and encourage National Platforms• Provide visibility for exiting Platforms• Encourage creation of Platforms in more Member States

• Next steps• Reach out to more sectors• Organize National Platform meetings

General Challenges and Next Steps for Year 2

Thank you

For more information visit: http://ec.europa.eu/environment/nature/biodiversity/business/

http://ec.europa.eu/environment/nature/biodiversity/business/

The Natural Capital Declaration and Roadmap

Financial sector leadership

on natural capital

Liesel van Ast, NCD Programme Manager

Landscape Natural Capital InitiativesInitiative Focus

Finance Corporate Government

Banking Investment Insurance

Natural Capital Declaration - UNEP FI and GCP (integrating

ecosystem goods & services risks and opportunities into products

and services, accounting and reporting at banks, asset owners,

fund managers and insurers)

Natural Capital Coalition

–accounting and

valuation of ecosystem

goods & services in

business (focus on

apparel, food)

System of

Environmental

Economic Accounts (UN

SEEA)

Banking

Environment

Initiative, Cambridge

Institute for

Sustainable

Leadership (soft

commodities)

Principles for

Responsible

Investment

(integrating

environmental,

social, governance –

ESG – issues in

fund management)

Principles for

Sustainable

Insurance, UNEP FI

(Including ESG issues

in insurance)

World Business Council

for Sustainable

Development (WBCSD)

The Economics of

Ecosystems and

Biodiversity (TEEB –

UNEP)

Equator Principles

(environmental &

social issues in

mainly project

finance)

Natural Capital Leaders

Platform, CISL

WAVES Partnership

(Wealth Accounting and

the Valuation of

Ecosystem Services)

Global Reporting

Initiative (GRI)

Natural Capital

Committee (UK

Government)

Natural Capital Project, Universities of Stanford and

Minnesota, WWF, and The Nature Conservancy

40+ NCD signatories

– 40+ institutions have

endorsed the NCD at

CEO level.

– Most have contributed

financially (annual

contribution, project

contribution).

– A number of

institutions have

‘observer status’.

– Growing number

interested and

committed to actively

participate in one or

more pilot projects.

– 5 FI representatives

are part of the NCD

Steering Committee

30+ NCD supporters

– 30+ organisations

support the NCD:

crucial to create

broader

acknowledgement

and support

– A number are part or

(planned) pilot

projects.

– 2 representatives are

part of the NCD

Steering Committee

The NCD Commitments

Working Group NCD commitment

1. Understand Build an understanding of risks and opportunities

linked to the natural capital impacts and

dependencies of portfolio companies.

2. Embed Integrate natural capital factors into financial

products and services - including loans,

investments and insurance products.

3. Account Work towards a consensus on including natural

capital in accounting and decision-making.

4. Report Work towards consensus on Integrated

Reporting, including natural capital disclosures.

• Finance focused: Finance-led projects to develop and test open-

source methodologies for the financial sector.

• Quantative and evidence-based for information efficiency:

Bring science-based data and analytics to integrate natural capital

indicators into capital markets.

• Foster innovation: Work with core teams to manage risk and

catalyse new products to protect natural assets.

• Active participation: Credit analysts/portfolio managers provide

time and expertise to ensure practical outcomes that are beneficial

and can be implemented widely.

The NCD approach

Corporate environmental profile

Natural capital risks and opportunities across portfolio of companies

Geospatial information on natural resources and state of the environment

Economic value

of impacts and dependence

Linking financial, corporate and

natural capital data

Corporate

environmental

profiles in

context

Natural

capital

in finance

Pipeline of pilot projects

No. Title Institutions Asset Class Partner

1 Framework to

evaluate Bank and

Investor Risk Policies

for Soft Commodities

to address

deforestation risk

Rabobank, IFC,

FMO, Banorte,

Pax World,

Calvert, MN

Services, ASN

Bank, Standard

Chartered,

Sumitomo Mitsui

Various Sustainalytics,

UN-REDD

Programme

2 Advancing Natural

Capital Accounting in

externalities heavy

sectors for financial

institutions

National Australia

Bank, TBC

TBC/Sector

dependent

UNEP TEEB,

KPMG

83

Pipeline of pilot projects


3 Accounting for

natural value to assist

credit risk

assessment in the

agri sector

Agri-lending NAB

4 Tool to assess water-

related natural capital

risks of mining

companies for

investors

TBC Equities Bloomberg,

NCC

84

Pipeline of partnership pilot projects


5 Tool to include water risk

metrics in financial

analysis of corporate

bonds

Calvert, Pax World,

Sarasin, TBC

Corporate

bonds

VfU, GIZ

6 Understanding and

integrating natural capital

risks into credit risk

assessments

IFC, Banorte,

National Australia

Bank, Unicredit,

Caisse des Dépôts,

Pax World, Calvert

Corporate

finance;

equities,

corporate

bonds, project

finance

TBC (IFC

Feasibility

Study)

85

86

Options to participate

(i) Join stakeholder group to be updated and consulted on

methodology developments

(ii) Provide input into needs analysis and methodology and tool

development

(iii) Participate in project research & development and test draft

methodologies/tools in relevant selected asset classes

GovernmentFinance(banks, investors, insurers)

Corporate sector

Ecosystem goods and services

Impacts on ecosystems (e.g.

deforestation, pollution)

Dependency on ecosystems

(e.g. water, fish, etc)

Risks

- Reputational

- Regulatory (e.g. license revoked)

- Operating risk (e.g. limited access)

- Litigation (damages /liabilities)

Methodological foundation to

mitigate financial risks and

develop sustainable finance

Financial regulation

To reduce systemic risk

Compliance with (new) laws and regulations

Controls on high-impact sectors

Incentives to reduce impacts

Integrating natural capital

into business decisions

Emerging initiatives

Measuring

economic

value of

ecosystems

Banking

• Brazil - Resolution No. 4.327 (2014)

• Kenya – Sustainable Finance Initiative (2014)

• China – Green Credit Guidelines (2012) Colombia - Green Protocol 2012

• Nigeria - Sustainable Banking Principles (2012)

• Bangladesh – ERM Guidelines (2011)

• Lebanon – Reduced reserve requirements for energy efficiency (2011)

• Indonesia – Green Protocol (2009)

• Peru & Mongolia –developing Guidelines

Securities

• Australia - Stock exchange reporting requirement (2014)

• EU - Directive on Disclosure of non-financial information (2013)

• France – Grenellereporting Law (2012)

• USA - SEC climate disclosure guidance (2009)

Growing examples of policy innovation

Insurance

• UK – Prudential Regulatory Authority exploring climate change & insurance supervision (2014-5)

• USA – NAIC climate reporting (2009)

Investment

• Malaysia – Investor Code (2014)

• Japan – Principles for Financial Action towards a Sustainable Society (2012)

• South Africa -Regulation 28 of the Pension Funds Act (2011)

• UK – Pensions Act Reporting (1999)

7

Critical issue: improving transparency15

Mobilising global stock markets through the Sustainable Stock Exchanges Initiative including Colombia, Egypt, India, Mexico, Nigeria, Poland, South Africa, Thailand, Turkey, UK, USA,

Growing focus on investor disclosure First portfolio footprint in 2005 and now Portfolio DecarbonisationCoalition will convene a critical mass of investors committed to measuring, disclosing and reducing carbon impact

How can securities, investment & accounting rules strengthen voluntary leadership to drive both disclosure and use of sustainability information?

Long-standing focus on corporate disclosure Next generation reporting standards, with a greater focus on materiality and investment decision making.

Thank you

Dankuwel

[email protected]

www.naturalcapitaldeclaration.org



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Head of Unit Natural Capital and Value Chains, IUCN NL


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Documents

11 December 2014, Radisson Blu Hotel Schiphol...Dec 11, 2014 · The Natural Capital Protocol project consists of: –Natural Capital Protocol (generic, across all sectors) –A high-level