Representatives from more than 160 of the world’s leading organisations spanning business, finance, accounting, academia and policy gathered in London last week to celebrate the launch of the world’s first Natural Capital Protocol. The Protocol was developed by Natural Capital Coalition, a coalition that has as one of its founders the World Business Council for Sustainable Development, and which today comprises around 200 institutions.

On the occasion, some global companies were selected to present their cases of application of the Protocol, among them the Brazilian Natura. For the first time, the company shared figures on its natural capital impacts, which represent approximately R$132 million, approximately R$21,300,000 of its annual revenue, and the consumer use phase can represent three times that. In addition to Natura, other Brazilian companies have been involved in testing the Protocol, such as Eletrobrás, Renova Energia, CPFL, Votorantim and Amaggi.

The Natural Capital Protocol is a framework (standardization) developed to help businesses generate reliable and actionable information that can be used in corporate decision-making processes, including natural capital as part of the productive context. Until now, natural capital has been excluded from decision-making and, when included, it has been inconsistent, open to interpretation, or limited by moral arguments. The Protocol responds by offering a standardized framework for identifying and measuring the value impacts and dependencies of natural capital. If adopted at scale, the Natural Capital Protocol has the potential to change the way companies evaluate their operations and make decisions, helping to reduce pollution, protect biodiversity, and limit the impacts of climate change, with positive business outcomes.

According to a report commissioned by Natural Capital Coalition, in 2013, half of all profits of existing companies would be at risk if the costs associated with natural capital were internalized through market mechanisms, regulation or taxation. Water scarcity, for example, would have a catastrophic impact on 40% of companies Fortune 100.

In Brazil

CEBDS monitored and participated in the entire process of preparing the Protocol with the Natural Capital Coalition and to the World Business Council for Sustainable Development. To provide continuity and assist members who want to think strategically about natural capital and the implementation of the Protocol, starting next year, CEBDS will continue the Business Partnership for Ecosystem Services (PESE), which will train companies and technicians to use the Natural Capital Protocol in Brazil.

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