A guidance for reporting on Natural Capital

The project resulted in a guidance for companies to communicate more effectively on their relationship with natural capital by capturing relevant data already available within the company and presenting the same in a natural capital context. The guidance was developed and piloted by Arcadis and CREM in close collaboration with a target group formed by Dutch businesses that already reported on their sustainability performance. Six  frontrunner companies from different market sectors  participated with the wish to present a clearer link between their activities and the actual effects on the natural environment and society. 

A reporting approach and formats for data collection are the basic project results to support companies intending to report on their natural capital performance. The approach for data collection starts with the addition of natural capital elements in business tools used throughout the year, such as stakeholder engagement, impact assessments and SWOT analyses. The data collection process should also include the interlinks with social, financial and environmental performance. However, searching for data to complete the formats will be the biggest challenge for companies.  

The piloting was a first try for the companies involved to review data through a natural capital lens. Working with the pilot companies and writing sample natural capital reports resulted in general insights as to the challenges and opportunities for natural capital reporting. This ‘new’ thinking asks for data not commonly collected by companies. It asks for more and different quantitative information and location specifics.  The resulting sample reports are often too technical for communication purposes. It is clear that visuals rather than text help in getting the message across. 

Scaling up to ensure that ‘natural capital’ becomes a common topic to think about and integrate in reporting is essential for the future.  

Download here the Guidance for Reporting on Natural Capital