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Adapting double-entry bookkeeping to renewable natural capital: An application to corporate net biodiversity impact accounting and disclosure

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  • Houdet, Joël
  • Ding, Helen
  • Quétier, Fabien
  • Addison, Prue
  • Deshmukh, Pravir

Abstract

Both internal and external stakeholders of organisations are increasingly aware of the importance of natural capital in creating sustainable value. Corporate reporting on natural capital has been growing considerably over the past couple of decades, particularly for issues such as climate change, water and waste. Yet, quantified data disclosed is currently essentially limited to annual flows, such as resource use or emissions, failing to account for net impact on natural capital. This paper proposes new conventions to double-entry bookkeeping to facilitate net biodiversity impact accounting and disclosure. Case study applications involve assessing the net ecosystem impacts of both the Nimes-Manduel-Redessan train station and Cossure offset projects, in the South of France, to record the periodic and accumulated changes in ecosystem extent and condition, without compromising the incommensurability of biodiversity components. Assuming the two projects belong to the same business, the scaling up of project-level data and their aggregation at the company level are demonstrated through the development of Statements of Biodiversity Performance and Position.

Suggested Citation

  • Houdet, Joël & Ding, Helen & Quétier, Fabien & Addison, Prue & Deshmukh, Pravir, 2020. "Adapting double-entry bookkeeping to renewable natural capital: An application to corporate net biodiversity impact accounting and disclosure," Ecosystem Services, Elsevier, vol. 45(C).
    • Handle: RePEc:eee:ecoser:v:45:y:2020:i:c:s2212041620300462
    DOI: 10.1016/j.ecoser.2020.101104
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    2. Bagstad, Kenneth J. & Ingram, Jane Carter & Shapiro, Carl D. & La Notte, Alessandra & Maes, Joachim & Vallecillo, Sara & Casey, C. Frank & Glynn, Pierre D. & Heris, Mehdi P. & Johnson, Justin A. & Lau, 2021. "Lessons learned from development of natural capital accounts in the United States and European Union," Ecosystem Services, Elsevier, vol. 52(C).
    3. Ingram, Jane Carter & Bagstad, Kenneth J. & Vardon, Michael & Rhodes, Charles R. & Posner, Stephen & Casey, Clyde F. & Glynn, Pierre D. & Shapiro, Carl D., 2022. "Opportunities for businesses to use and support development of SEEA-aligned natural capital accounts," Ecosystem Services, Elsevier, vol. 55(C).
    4. Isaac Ampofo Atta Junior & Isaac Ampofo Atta Senior & Beatrice Ampofo, 2021. "Improving The Academic Performance Of Form Two Accounting Students Of Toase Senior High School In Applying The Double Entry Principle Through Group Learning Technique," Education, Sustainability & Society (ESS), Zibeline International Publishing, vol. 4(1), pages 1-6, January.
    5. S. El Geneidy & S. Baumeister & M. Peura & J. S. Kotiaho, 2023. "Value-transforming financial, carbon and biodiversity footprint accounting," Papers 2309.14186, arXiv.org.
    6. Comte, Adrien & Sylvie Campagne, C. & Lange, Sabine & Bruzón, Adrián García & Hein, Lars & Santos-Martín, Fernando & Levrel, Harold, 2022. "Ecosystem accounting: Past scientific developments and future challenges," Ecosystem Services, Elsevier, vol. 58(C).
    7. Marie-Chantale Pelletier & Claire Horner & Mathew Vickers & Aliya Gul & Eren Turak & Christine Turner, 2023. "Recognising natural capital on the balance sheet: options for water utilities," Papers 2312.13515, arXiv.org.
    8. Árpád Tóth & Cecília Szigeti & Alex Suta, 2021. "Carbon Accounting Measurement with Digital Non-Financial Corporate Reporting and a Comparison to European Automotive Companies Statements," Energies, MDPI, vol. 14(18), pages 1-18, September.

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