This process can subsequently inform government, corporate and consumer decision making as each relates to the use or consumption of natural resources and land, and sustainable behaviour.
[3] The criticism associated with these dashboards is that a large number of indicators risks muddling a clear message about sustainability that resonates with policy makers or citizens.
ANS is calculated as the change in total wealth over a given time period, while ecological footprint assessments determine how much of the regenerative capacity of the biosphere is required to maintain the consumption habits of a defined population.
General commitment by the international community to support the development of natural capital accounting was motivated early on by the Brundtland Report in 1987 and the 1992 Rio Summit.
[10] While some of the measurement concepts involved in the accounting process are still evolving, it is possible that the eventual valuation of ecosystems and their depletion could be included in the calculations of environmentally-adjusted macroeconomic indicators.
[13] Following its adoption, the Statistics Division of the United Nations Department of Economic and Social Affairs (UN DESA) in collaboration with the United Nations Environment Programme (UNEP) and the Basque Centre for Climate Change (BC3) released the ARIES for SEEA Explorer[14] in April 2021, an artificial intelligence-powered tool based on the Artificial Intelligence for Environment and Sustainability (ARIES) platform for rapid, standardized and customizable natural capital accounting.
WAVES is global partnership that was inaugurated in October 2010 by World Bank President Robert Zoellick at the Convention on Biological Diversity COP-10 meeting in Japan.
[2] While they have different theoretical underpinnings, what these approaches have in common with each other is a fundamental recognition of the limitations of traditional indicators in measuring economic performance and social progress, and the importance of sustainability in the long-run.
[24] Since natural capital accounting requires the identification of replenishment activities as well as environmental degradation, the inclusion of corporations into the valuation process is key.
[22] The Natural Capital Declaration (NCD), a commitment by CEOs in the financial sector to embed ESG considerations in management and investment activities, was revealed prior to the conference.
[24] As well, the World Bank started the WAVES 50:50 Initiative to analyze the progress and next steps required for improving efforts to account for natural capital and enhance countries' sustainable decision-making capabilities.
Their research, based on the KLEMS database framework (Capital, Labour, Energy, Material and Service Inputs), measures and analyses the sources of economic growth, productivity and competitiveness in the Argentinian economy.
[25] Professor George Santopietro, at Radford University in Virginia, examined several alternative methods for estimating resource rent and relatedly, depletion costs of natural capital.
[30] The current environmental asset accounts produced by the Office for National Statistics (ONS) are: oil and gas reserves, forestry and land cover.
[38] Professor Nancy Olewiler, at Simon Fraser University, conducted several case studies to value natural capital in settled areas of Canada.
[40] Then, in 2004, the Green GDP Accounting Research Project was launched by the State Environmental Protection Administration of China (SEPA) and the National Bureau of Statistics (NBS).
[41] The costs of resource depletion and ecological damage were not included in the calculations because of methodological difficulties, limited technological capabilities and a lack of relevant data.
[40] The interaction between Eurostat and national statistical offices of EU Member States was formalized in 2011, by the adoption of Regulation No 691 on European Environmental Economic Accounts.
The proposed 7th Environment Action Programme (EAP) of the EC explicitly identifies this issue, by calling for further development and integration of economic and environmental indicators.
[47] The EC Communication Roadmap to a Resource Efficient Europe sets 2020 as the year by which businesses, along with public authorities, will properly account for natural capital and ecosystem services.
"[49] The Ministry of Sustainable Development is presently consulting with stakeholders and refining methodological options in order to begin assembling physical ecosystem assessments.
[50] An Expert Group, led by IHDP Scientific Committee chairman Professor Partha Dasgupta, is in the process of developing a system to "green" India's national accounts.
[51] Some of the issues the Group will address include establishing coordination mechanisms within the country and with international partners, and standardizing data collection and valuation methodologies.
[7] In 1997, the United Nations University-Institute of Advanced Studies (UNU-IAS) measured the environmental impacts of industrialization and trade in Indonesia (along with China and Japan).
[57] In their study, the UNU-IAS constructed an international environmental input-output model for the Asia Pacific region, and from this, was able to compile a preliminary SEEA and Green GDP approximation.
[60] The CLEAR method reclassified the aforementioned financial statements such that expenditures for environmental purposes could be identified, and compiled into separate monetary accounts.
[64] The INEGI reports that while the scope of action should be increased, this trend reflects the successful efforts of the government to reduce impacts that negatively affect the environment.
[64] The Federal State Statistics Service (Rosstat) currently includes estimates of land and non-cultivated bio and water resources in the "tangible non-produced assets" section of the Russian balance sheet.
[67] William Nordhaus (Nature's Numbers), along with Nicholas Muller and Robert Mendelsohn, co-authored a study on integrating environmental externalities into a SNA.
It estimates that damages from activities such as combustion of waste, sewage treatment and firing power plants by oil or coal are larger than their value added.