Natural Capital Protocol

The Natural Capital Protocol is a standardized framework that helps companies identify, measure and value their impacts and dependencies on natural capital. It is designed to help generate trusted, credible, and actionable information for business managers. 

The Protocol aims to support better decisions by including how we interact with nature, or more specifically, natural capital

The Protocol was launched in July 2016. We led its development on behalf on the Natural Capital Coalition, in partnership with a consortium of experts from business, service providers, non-governmental organizations, science and academia.

The Challenge

The success of our modern economies has been built on and measured through traditional financial indicators. Yet business worldwide also relies on natural capital to succeed - but without a way of translating the value of those resources, the environment is becoming increasingly degraded. According to the World Wide Fund for Nature's (WWF) 2014 Living Planet report, humanity is depleting natural capital faster than the Earth can replenish it, and at an accelerating rate.

The Business Case

Every business relies on nature in one way or another. Until now, these impacts and dependencies have largely been hidden, we have had no way of translating them into the boardroom. For business to make better decisions for its social and environmental bottom line – it needs better information about its environmental and social risks and opportunities. The Protocol helps to measure and value this relationship, and therefore gives business the information needed to make better, more sustainable decisions that reduce risk and increase opportunity.

The Business Solution

The Protocol aims to generate trusted, credible and actionable information that business managers need to inform their decisions. The Protocol’s nine step standardized framework is a generally accepted reference for all businesses to use. It is a milestone on the journey towards the Redefining Value vision of companies measuring, valuing and reporting their true value, true costs and true profits by 2050.