A
“a store of value representing a benefit or series of benefits accruing to an economic owner by holding or using the entity over a period of time. It is a means of carrying forward value from one accounting period to another.”
Source/reference: SEEA-CF 2014, para. 5.32.
“abiotic flows are contributions to benefits from the environment that are not underpinned by or reliant on ecological characteristics and processes”
Source/reference: SEEA-EA 2021, para. 6.35.
Note: The monetary value of abiotic flows should not be included in the calculation of the value of ecosystem assets, but reported separately using market prices (SEEA-EA, s. 6.4.5).
B
“Benefits are the goods and services that are ultimately used and enjoyed by people and society”
Source/reference: SEEA-EA 2021, para. 6.16.
C
“Cultural services are the experiential and intangible services related to the perceived or actual qualities of ecosystems whose existence and functioning contributes to a range of cultural benefits”
Source/reference: SEEA-EA 2021, para. 6.51.
The removal of carbon dioxide from the atmosphere.
The storage of sequestered carbon.
D
“All external factors that affect nature, anthropogenic assets, nature’s contributions to people and good quality of life. They include institutions and governance systems and other indirect and direct drivers (both natural and anthropogenic).”
Source/reference: TNFD (2023, p. 116)
Note: See also: Drivers of nature change include: climate change; land/freshwater/ocean use change; resource use/replenishment; pollution/pollution removal; and invasive alien species introduction/removal (TNFD 2023, p. 30).
“A clearly defined geographical space that has been subject to human activity that has changed the land’s surface condition, relative to a reference state.”
Source/reference: TNFD (2023, p. 116).
“A disorder of structure or function in a human, animal, or plant, especially one that produces specific symptoms or that affects a specific location and is not simply a direct result of physical injury.”
Source/reference: Oxford English Dictionary.
“Dependencies are aspects of environmental assets and ecosystem services that a person or an organisation relies on to function. A company’s business model, for example, may be dependent on the ecosystem services of water flow, water quality regulation and the regulation of hazards like fires and floods; provision of suitable habitat for pollinators, who in turn provide a service directly to economies; and carbon sequestration.”
Source/reference: TNFD (2023, p. 115)
Note: See also: Natural Capital Protocol definition of a natural capital dependency as a “business reliance on or use of natural capital” (Natural Capital Coalition, 2016, pp. 16-17).
E
Exchange values are the values at which goods, services, labour or assets are in fact exchanged or else could be exchanged for cash
Source/reference: SEEA-EA 2021, para. 8.13.
Note: Exchange values are usually based on observed market prices. Where there is no observable market for a good or service, then exchange values may be estimated based on market prices for similar or analogous items, adjusted if necessary for quality and other differences; or based on what it costs currently to produce the good or service. Assets may be priced at market prices, or the written down replacement cost (current price of an equivalent new asset less accumulated depreciation), or the discounted present value of future returns (SEEA-EA, para. 8.20). As the first two of these options are not generally applicable to ecosystem assets, they are valued using a net present value approach. In other words, first the economic contribution of the ecosystem asset to each ecosystem service that it provides must be estimated (as per the monetary flows tabs for each ecosystem service), then these values for each year into the future should be discounted using an appropriate discount rate, and the discounted values for all years and all ecosystem services added together to arrive at the discounted present value of the ecosystem asset. For further guidance on monetary valuation see NCAVES and MAIA (2022).
Environmental assets are the naturally occurring living and non-living components of the Earth, together constituting the biophysical environment, which may provide benefits to humanity. …In the Central Framework, the focus is on individual components of the environment that provide materials and space to all economic activities. Examples include mineral and energy resources, timber resources, water resources and land.
Source/reference: SEEA-CF 2014, para. 2.17.
Note: “The term “land” as applied in the SEEA also encompasses areas of inland water such as rivers and lakes.” (SEEA-CF 2014, para. 5.21)
ecosystem services are the contributions of ecosystems to the benefits that are used in economic and other human activity
Source/reference: SEEA-EA 2021, para. 6.9.
Note: See SEEA-EA 2021, Table 6.3 for reference list of selected ecosystem services.
the size of an ecosystem asset in terms of spatial area.
Source/reference: SEEA-EA 2021, para. 2.13.
…the condition of an ecosystem asset is interpreted as the ensemble of multiple relevant ecosystem characteristics, which are measured by sets of variables and indicators that in turn are used to compile the accounts. Variables and indicators are selected in relation to the context and purpose of assessment, and different considerations will be relevant across natural and anthropogenic ecosystems. Individual indicators can be aggregated to composite indices that provide a synthesis of the integrity, health or naturalness of an ecosystem asset.
Source/reference: SEEA-EA 2021, para. 5.18.
Ecosystem condition variables are quantitative metrics describing individual characteristics of an ecosystem asset. A single characteristic can have several associated variables, which may be complementary or overlapping. Variables differ from characteristics (even if the same descriptor is applied to them) as they have a clear and unambiguous definition (measurement instructions, formulae, etc.) and well-defined measurement units that indicate the quantity or quality they measure.
Source/reference: SEEA-EA 2021, para. 5.41.
Note: Examples of ecosystem condition variables for selected ecosystem types are given in SEEA-EA 2021, Table 5.7.
For a full list of SEEA ECT groups and classes, please see Table 5.1 in SEEA-EA 2021.
Source/reference: SEEA-EA 2021, Table 5.1.
Ecosystem condition indices and sub-indices are composite indicators that are aggregated from the combination of individual ecosystem condition indicators recorded in the ecosystem condition indicator account
Source/reference: SEEA-EA 2021, para. 5.81.
Ecosystem condition indicators are rescaled versions of ecosystem condition variables. They are derived when condition variables are set against reference levels determined with respect to ecological integrity.
Source/reference: SEEA-EA 2021, para. 5.60.
Ecosystem condition is the quality of an ecosystem measured in terms of its abiotic and biotic characteristics. Condition is assessed with respect to an ecosystem’s composition, structure and function which, in turn, underpin the ecological integrity of the ecosystem, and support its capacity to supply ecosystem services on an ongoing basis. Measures of ecosystem condition may reflect multiple values and may be undertaken across a range of temporal and spatial scales.
Source/reference: SEEA-EA 2021, para. 5.2.
Ecosystem capacity is the ability of an ecosystem to generate an ecosystem service under current ecosystem condition, management and uses, at the highest yield or use level that does not negatively affect the future supply of the same or other ecosystem services from that ecosystem.
Source/reference: SEEA-EA 2021, para. 6.141.
“ecosystem assets are contiguous spaces of a specific ecosystem type characterized by a distinct set of biotic and abiotic components and their interactions.”
Source/reference: SEEA-EA 2021, para. 2.11.
Note: Ecosystem assets are a type of environmental asset, where the focus is on interactions between individual environmental assets within ecosystems.
“the geographical territory for which an ecosystem account is compiled.”
Source/reference: SEEA-EA 2021, para. 2.12.
“An ecosystem is a dynamic complex of plant, animal and micro-organism communities and their non-living environment interacting as a functional unit”
Source/reference: SEEA-EA, para. 2.6.
F
“Final ecosystem services are those ecosystem services in which the user of the service is an economic unit – i.e., business, government or household”
Source/reference: SEEA-EA 2021, para. 6.24.
I
“Changes in the state of nature (quality or quantity), which may result in changes to the capacity of nature to provide social and economic functions. Impacts can be positive or negative. They can be the result of an organisation’s or another party’s actions and can be direct, indirect or cumulative. A single impact driver may be associated with multiple impacts.”
Source/reference: TNFD (2023, p. 122).
Note: See also: Natural Capital Protocol definition of a natural capital impact as a “negative or positive effect of business activity on natural capital” (Natural Capital Coalition, 2016, pp. 16-17).
“Impact drivers are measurable quantities of a natural resource that are used as an input to production and measurable non-product outputs of a business activity that affects nature.” “A measurable quantity of a natural resource that is used as a natural input to production (e.g. the volume of sand and gravel used in construction) or a measurable non-product output of a business activity (e.g. a kilogram of NOx emissions released into the atmosphere by a manufacturing facility).” An impact driver is “a measurable quantity of a natural resource that is used as an input to production (e.g., volume of sand and gravel used in construction) or a measurable non-product output of business activity (e.g., a kilogram of NOx emissions released into the atmosphere by a manufacturing facility).”
Source/reference: TNFD (2023, p. 30). TNFD (2023, p. 121). Natural Capital Coalition (2016, p. 44).
Note: users may wish to extend this definition to include product outputs, as in principle, product outputs can also drive impacts.
“intermediate services are those ecosystem services in which the user of the ecosystem services is an ecosystem asset and where there is a connection to the supply of final ecosystem services”
Source/reference: SEEA-EA 2021, para. 6.26.
L
“Land is a unique environmental asset that delineates the space in which economic activities and environmental processes take place and within which environmental assets and economic assets are located.”
Source/reference: SEEA-CF 2014, para. 5.239
M
In this Catalogue, a metric is something you can measure that tells you something useful about nature, or about an organisation’s interactions with nature. More generic definitions include a “system or standard of measurement” (TNFD, 2023) or “a set of figures or statistics that measure results” (OED).
TNFD (2023, p. 128) , Oxford English Dictionary
In this Catalogue, a method is a particular procedure for measuring a metric. The method can be solely for a specific metric, or part of a suite of procedures for different metrics. A more generic definition is “a particular procedure for accomplishing or approaching something, especially a systematic or established one” (OED).
Oxford English Dictionary
N
“The stock of renewable and nonrenewable natural resources (e.g., plants, animals, air, water, soils, minerals) that combine to yield a flow of benefits to people”
Source/reference: Natural Capital Coalition 2016, p. 12.
Note: TNFD (2023, p. 129) has the same definition. Note that although the term ‘environmental asset’ has a different definition in the SEEA framework, it is effectively the same as natural capital. Other functionally equivalent terms include ‘natural capital assets’ or ‘natural assets’.
P
“An animal, plant, fungus, or other organism that thrives in places where it is not wanted by people, e.g. in fields, with livestock, in forests, gardens, etc.”
Source/reference: https://www.ipbes.net/glossary-tag/pest
“Priority locations are locations that are: Material locations: Locations where an organisation has identified material nature-related dependencies, impacts, risks and opportunities in its direct operations and upstream and downstream value chain(s); and/or Sensitive location[s]: Locations where the assets and/or activities in its direct operations – and, where possible upstream and downstream value chain(s) – interface with nature in:
- Areas important for biodiversity; and/or
- Areas of high ecosystem integrity; and/or
- Areas of rapid decline in ecosystem integrity; and/or
- Areas of high physical water risks; and/or
- Areas of importance for ecosystem service provision, including benefits to Indigenous Peoples, Local Communities and stakeholders.”
Source/reference: TNFD (2023, p. 136).
“Provisioning services are those ecosystem services representing the contributions to benefits that are extracted or harvested from ecosystems.”
Source/reference: SEEA-EA 2021, para. 6.51.
R
“A reference condition is the condition against which past, present and future ecosystem condition is compared to in order to measure relative change over time. It represents the condition of an ecosystem that is used for setting the high level (or one endpoint) of reference levels of the variables that reflect high ecological integrity. The reference condition corresponds to a state where all condition indicators have a (spatially averaged) value of 1 (100%).”
Source/reference: SEEA-EA 2021, para. 5.69.
Note: “For ecosystem accounting purposes, the reference condition is based on the principle of maintaining ecological integrity, stability and resilience (over ecological timeframes). In many ecosystem types, it refers best to the natural state (i.e., the ecological state of a natural ecosystem), in terms of ecosystem characteristics at their natural condition allowing for dynamic ranges. The metrics of condition represent the distance from natural irrespective of the characteristic, ecosystem type, or potential desired outcome from a human perspective. The reference condition of an ecosystem corresponds to the condition where the structure, composition and function are dominated by natural ecological and evolutionary processes including food chains, species populations, nutrient and hydrological cycles, self-regeneration and involving dynamic equilibria in response to natural disturbance regimes. An ecosystem at a natural reference condition exhibits an absence of major human modification. An ecosystem at its reference condition attains maximum ecological integrity… The natural state may not be related to supply of ecosystem services and may not be the target of current legislation, policy or ecosystem management objectives… Using the natural state as the reference condition is preferred and recommended. However, in many cases, it may not be possible to define a reference condition as ‘natural’ in absolute terms, since the environment may have changed due to both human and natural processes. In cases where a natural state does not represent a meaningful reference for condition accounts, particularly for anthropogenic ecosystems such as agricultural and urban ecosystems, alternative reference conditions, still characterised by integrity, stability and resilience, can be established and considered as anthropogenically-derived reference conditions.” (SEEA-EA 2021, paras. 5.70-5.72).
“A reference level is the value of a variable at the reference condition, against which it is meaningful to compare past, present or future measured values of the variable.”
Source/reference: SEEA-EA 2021, para. 5.65.
“Regulating and maintenance services are those ecosystem services resulting from the ability of ecosystems to regulate biological processes and to influence climate, hydrological and biochemical cycles, and thereby maintain environmental conditions beneficial to individuals and society”
Source/reference: SEEA-EA 2021, para. 6.51.
S
“The SEEA Ecosystem Condition Typology (SEEA ECT) is a hierarchical classification system for organising data on ecosystem condition, consisting of six classes grouped into three main groups (abiotic, biotic and landscape-level ecosystem characteristics).”
SEEA-EA 2021, Table 5.1.
Note: Ecosystem condition typology (ECT): For a full list of SEEA ECT groups and classes, please see Table 5.1 in SEEA-EA 2021.
“An ecosystem with most of its processes and biodiversity intact, though altered by human activity in strength or abundance relative to the natural state.”
Source/reference: Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES).
“Flows related to the use of the environment as the location for transportation and movement, and for buildings and structures” and “Flows related to the use of the environment as a sink for pollutants and waste (excluding the mediation of pollutants and wastes recorded as ecosystem services)”.
Source/reference: SEEA-EA 2021, Table 6.1.
“The number of species within a given sample, community, or area.”
Source/reference: https://www.ipbes.net/glossary-tag/species-richness
“State” is generally understood as the quantity and quality of environmental assets, or the extent and condition of ecosystem assets. The TNFD (2023, p. 140) defines “State of nature” as “The condition and extent of ecosystems, and species population size and extinction risk, including positive or negative changes.” Bradley and Yee (2015) define “State” in the context of the “Driving Forces – Pressures – State – Impacts – Responses” (DPSIR) framework” as “the quantity and quality of physical, chemical, and biological components… of the natural and built environment.” Governments produce “State of the Environment” reports which describe the current quantity/extent and quality/condition of various aspects of the environment, and the observed trends in state of the environment over time. In the NCMC, the term “state” is used to describe a type of impact or dependency metric that measures the quantity and quality of environmental assets, or the extent and condition of ecosystem assets.
Source/reference: TNFD (2023, p. 140). Bradly and Yee (2015), pp. 12-13.
W
“The amount of water drawn into the boundaries of the undertaking (or facility) and not discharged back to the water environment or a third party over the course of the reporting period. Water consumption is equal to water withdrawal less water discharge.”
Source/reference: TNFD (2023, p. 145).
“Water stressed (region): defined in three levels: 25%, below which no water scarcity exists; 60%, indicating approaching scarcity; 75%, above which strong water scarcity is identified. Anything above the 60% figure, approaching scarcity, is considered ‘water stressed.”
Source/reference: TNFD (2023, p. 146).
“The sum of all water drawn into the boundaries of the undertaking from all sources for any use over the course of the reporting period.”
Source/reference: TNFD(2023, p. 146).
“Plants (not necessarily alien) that grow in sites where they are not wanted and which usually have detectable economic or environmental effects (synonyms: plant pests, harmful species; problem plants). ‘Environmental weeds’ are alien plant taxa that invade natural vegetation, usually adversely affecting native biodiversity and /or ecosystem functioning.” (Richardson et al., 2000, p. 98)
“A plant that is a pest in a particular circumstance.” (IPBES)
Source/reference: Richardson et al., (2000, p 98). https://www.ipbes.net/glossary-tag/pest
Welfare values represent the total benefit accruing to consumers and suppliers from exchanging something at a given price.
Source/reference: SEEA-EA, para. A12.8.
Abbreviations
AASF: Australian Agricultural Sustainability Framework
AfN: Accounting for Nature
CSIRO: Commonwealth Scientific and Industrial Research Organisation
IFRS: International Financial Reporting Standard
ISSB: International Sustainability Standards Board
IUCN: International Union for the Conservation of Nature
IUCN-GET: IUCN Global Ecosystem Typology
NCMC: Natural Capital Measurement Catalogue
NPV: Net Present Value
SAFE: Shared Analytic Framework for the Environment
SBTN: Science-Based Targets for Nature
SEEA: System of Environmental-Economic Accounting
TCFD: Task Force on Climate-related Financial Disclosures
TNFD: Taskforce on Nature-related Financial Disclosures
UN: United Nations