Natural capital refers to the stock of natural resources, both renewable (e.g., forests, water, fish) and nonrenewable (e.g., minerals, natural gas), that yield essential benefits and services to people. It includes both biotic elements (living organisms like plants and animals) and abiotic components (soils, rocks, minerals, water, and air). 

From this natural capital, we derive ecosystem services: the benefits that sustain human life, from clean air and water to food production and climate regulation. Natural capital exists at all scales: from vast forests and oceans to city parks, street trees, and even the plants in your backyard! 

The way we manage natural capital directly impacts its ability to provide these essential services. Natural Capital Accounting (NCA) helps measure and track the value of these resources, providing a structured approach to integrating nature into decision-making. By quantifying the contributions of natural capital to economies and societies, NCA enables businesses, governments, and organizations to assess their dependencies, identify risks, and implement strategies for sustainable resource management.

Whether you are a large corporation, SME, government body, NGO, or community, your organization depends on and influences natural capital. By managing it wisely, you can enhance resilience, reduce risks, and create long-term value for both people and the planet.

Ecosystems, both natural and managed, provide many benefits, known as ecosystem services, to society. These services can broadly be classified in 4 main categories: 

• Provisioning: includes resources such as food, fodder, water, timber & other materials; 

• Regulating: refers to beneficial ecological processes such as flood control, erosion control, carbon- sequestration. pollination and others; 

• Cultural: encompasses non-material benefits such as recreation, opportunities for tourism, inspiration and cultural identity; 

• Supporting: relates to services that underpin other categories e.g.  providing habitats to maintain biodiversity 

Because many of these ecosystem services are ‘public goods’ their economic and monetary value is often neglected in decisions which are still mainly based on financial Cost-Benefit Analysis which ignores most of the negative (and positive) so-called ‘externalities’ leading to many environmental problems and non- sustainable development trajectories (de Groot et al., 2021). As a result, ecosystem services are becoming increasingly scarce.

In order to stop this negative trend, the challenge is to provoke society to acknowledge the value of natural capital. Ecosystem Services Valuation is a method that helps us tackle this challenge. That’s because in addition to their intrinsic and other non-monetary values, ecosystems and their services have many welfare effects which can partly be measured in economic and monetary terms. The valuation of these services helps policymakers, businesses, and communities make informed decisions about land use, resources, conservation, and sustainable development. 

There are numerous approaches and methodologies to value ES and can broadly be clustered in: 

• Market-based valuation methods: using prices of resources in markets as proxies for the value of services (e.g., pricing timber, fish, or clean water); 

• Revealed preference methods: observing revealed allocation of time and resources by people for a given service (e.g., travel cost method for recreation); 

• Stated preference methods: estimating the surplus that the consumer is willing to pay for a service (e.g., surveys on willingness to pay for conservation or entry to a protected area);

• Cost-based approaches: using costs as proxies for the value of services (e.g., replacement cost for flood protection by wetlands, damage cost avoided due to coral reefs protecting coastal infrastructure). 

ESV is a tool that (1) provides for comparisons of natural capital to physical and human capital in regard to their contributions to human welfare; (2) monitors the quantity and quality of natural capital over time with respect to its contributions to human welfare; and (3) offers meaningful conceptual frameworks for evaluation of investments, projects and policies that will affect natural capital stocks (Liu et al., 2010; de Groot et al., 2021).

No, and that’s not what ecosystem service valuation aims to do. Nature is inherently priceless, with intrinsic value beyond human use or economic benefit. Every ecosystem and living being holds significance beyond the services they provide. What we do value, however, is nature’s contributions to human societies, from economic activities to social well-being. 

By assessing these contributions, we bring visibility to the often-overlooked benefits of natural capital and advocate for its sustainable management. Ecosystem Services valuation is not about putting a price tag on nature but about making its benefits measurable and recognized. With quantification and valuation of these services, we provide decision-makers with the tools to integrate nature into economic, social, and political frameworks, ensuring it is appreciated, protected, and enhanced. After all, we cannot manage what we do not measure.

Absolutely. For SMEs, having a nature strategy is no longer just a nice-to-have, it’s becoming a business necessity. Ignoring your company’s dependencies and impacts on nature can expose you to risks like supply chain disruptions, rising costs, and reputational damage as customers and investors demand more sustainable practices. 

Beyond risk management, a well-defined nature strategy helps unlock opportunities, from cost savings and innovation to accessing green financing. It also ensures that your business stays ahead of emerging regulations, particularly in the European Union. For example, the EU Corporate Sustainability Reporting Directive (CSRD) requires many companies, including SMEs within larger supply chains, to disclose their environmental impacts, including those related to nature and biodiversity. Starting from 2026, all listed SMEs in the EU will be subject to these requirements, with reports due in 2027. Additionally, the EU Taxonomy sets sustainability criteria that may indirectly affect SMEs working with larger regulated entities. 

By implementing a nature strategy now, your business can stay competitive, resilient, and future-proof in an evolving regulatory and market landscape.

Not at all! Your first consultation with us is completely FREE: no strings attached. In this initial call, we’ll help you define your goals, assess your needs, and outline the best approach for your Nature strategy. By the end of the session, you’ll have a clear roadmap on the steps needed to start implementing a strategy that aligns with your objectives. 

Book your free consultation today and take the first step toward a more sustainable future!