Joint Workshop hosted by TEEB for Business Coalition, Natural Capital Declaration and Defra

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1 Joint Workshop hosted by TEEB for Business Coalition, Natural Capital Declaration and Defra Developing the UK roadmap for business accounting for nature Helen Dunn, Senior Economic Adviser, Defra 10 th December 2013

2 Introduction Background to roadmap initiative - EMTF on business accounting for nature (recommendation 21) Why a roadmap? What could be the potential benefits? Links to policy initiatives for accounting for natural capital Scope and timetable for Roadmap

3 Background to roadmap initiative: Ecosystem Markets Taskforce Report Ecosystem Markets Task Force Report (March 2013) set out a high level narrative of the importance for business to integrate the real value of nature into its thinking. Benefits for companies include greater resilience and managing risk more effectively. EMTF identified need for support including new measures and standards to support awareness of how businesses depends and impacts directly or indirectly on natural ecosystems. EMTF also recommended that Government review incentive structures surrounding standards and metrics to see if these create specific barriers to take up We need better tools and metrics to understand the role nature plays in our businesses: tools and metrics that will integrate financial, environmental, social and governance information in a concise, consistent and comparable format

4 Background to roadmap commitment: EMTF recommendation 21 The commitment to develop a roadmap was set out in the Government s response to the EMTF recommendation 21 on business accounting for nature at: In particular: 1. reviewing incentive structures to ensure they support the uptake of ecosystem standards and metrics by business. As part of this work Defra will support the TEEB for Business Coalition to lead a workshop focussed on the topic; 2. working with business to produce and publish a roadmap in Spring 2014 that builds on the workshop with the TEEB for Business Coalition.

5 Why a roadmap? What are benefits? Key part of roadmap work to review incentives and barriers to business uptake of ecosystem standards and metrics seen as a gap Opportunity to engage with initiatives encouraging business and finance sector accounting for natural capital including TEEB for Business Coalition and NCD (+ many others) Roadmap could help to support this agenda towards consistent effort to embed natural capital in business decision making and develop a longer term strategy to incentivise uptake. Source: NCD roadmap

6 Policy initiatives - accounting for natural capital Policy appraisal micro level: High level guidance on identifying and valuing impacts in policy appraisal Tracking natural capital at national level: ONS/Defra ecosystem accounting roadmap to 2020: to make more visible on the nation s balance sheet

7 Developing metrics for environmental reporting and business investment in natural capital

8 What is in scope for roadmap? Reviewing the incentives and barriers for uptake Focus at a national (UK) level, but be developed with strong understanding of the international context and at what level actions need to be driven Highlighting opportunities for progress over the short, medium and longer term including mapping key points of opportunity over time whether UK based or internationally - to further increase uptake To be drawn up with key partners TEEB4BC and NCD via consultation with businesses, advisory committees such as the Natural Capital Committee, NGOs and Government. Identifying actions needed across different stakeholder groups

9 What business, finance and policy drivers might accelerate the demand for uptake of standards and metrics? Developing the business case & case studies Harmonising metrics and tools, filling gaps Reviewing current barriers to uptake? - Organisation level (relevance, measurement, priority, integration) - Macro (lack of various pressures including from government, customers and investors) Build on existing roadmaps e.g. NCD roadmap

10 Indicative timetable and milestones for roadmap Summary paper on outputs of Joint TEEB4BC/NCD/Defra Workshop Jan 2014 Follow on discussions/ working groups held to build on workshop outputs early 2014 Drafting with key partners TEEB4BC, NCD and stakeholders of roadmap including incentives review and timeline for action developed for comment, March 2014 Final version of Roadmap agreed and published Spring 2014

11 Thank you Background to business accounting for nature roadmap see Ecosystem markets taskforce report and government response at: For further information on Roadmap and interest in becoming involved please contact Geoff Richards (policy lead) or myself at:

10 th December 2013 10:00-16:30

10 th December 2013 10:00-16:30 Natural Capital Incentives and Support Mechanisms for Business & the Financial Sector Workshop Defra, TEEB for Business Coalition & Natural Capital Declaration 10 th December 2013 10:00-16:30 Workshop

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