Natural capital asset
The specific components of natural capital, such as water, atmosphere or land, that provide ecosystem services 1. As in economics, an asset describes a store of value representing a benefit or series of benefits accruing to an economic owner by holding or using the entity over a period of time 2.
Classification of natural capital assets
Several classifications exist that group natural capital assets (e.g. SEEA Central Framework 2, Natural Capital Committee 3, Shepherd et al. 4 and OECD Green Growth Indicators 5). Leach et al. consolidated and amended existing classifications to produce a hierarchical natural capital asset classification that standardises the identification and description of all natural capital assets (see Leach et al. 2019 for further details 6).
References & Websites
- Natural Capital Finance Alliance and UN Environment World Conservation Monitoring Centre. 2018. Exploring Natural Capital Opportunities, Risks and Exposure: A practical guide for financial institutions.
- System of Environmental-Economic Accounting (SEEA) 2012 Central Framework, 2014. United Nations, European Union, Food and Agriculture Organization of the United Nations, International Monetary Fund, Organisation for Economic Co-operation and Development, The World Bank.
- Natural Capital Committee, 2014. Towards a Framework for Defining and Measuring Changes in Natural Capital. Working Paper 1. Department for Environment, Food & Rural Affairs.
- Shepherd, E., Milner-Gulland, E.J., Knight, A.T., Ling, M.A., Darrah, S., van Soesbergen, A., Burgess, N.D., 2016. Status and trends in global ecosystem services and natural capital: assessing progress toward Aichi Biodiversity Target 14. Conserv. Lett. 9, 429–437.
- OECD, 2017. Green Growth Indicators 2017. OECD Publishing, Paris
- Leach, K., Grigg, A., O’Connor, B., Brown, C., Vause, J., Gheyssens, J., Weatherdon, L., Halle, M., Burgess, N., Fletcher, R., Bekker, S., King, S., Jones, M. 2019. A common framework of natural capital assets for use in public and private sector decision making. Ecosystem Services, 36.