BS 8632:2021 Natural Capital Accounting for Organizations. Specification

Unlock the potential of your organization with the BS 8632:2021 Natural Capital Accounting for Organizations. Specification. This comprehensive standard is designed to guide organizations in effectively managing and accounting for their natural capital, ensuring sustainable growth and responsible stewardship of environmental resources.

Overview

Released on June 10, 2021, this standard is a pivotal resource for organizations aiming to integrate natural capital considerations into their financial and strategic planning. With a total of 54 pages, it provides a detailed framework for understanding and implementing natural capital accounting, a crucial step towards sustainability and environmental responsibility.

Key Features

• Standard Number: BS 8632:2021
• ISBN: 978 0 539 06096 6
• Status: Standard

Why Choose BS 8632:2021?

In today's world, where environmental concerns are at the forefront of global discussions, organizations are increasingly expected to demonstrate their commitment to sustainability. The BS 8632:2021 standard provides a structured approach to natural capital accounting, enabling organizations to:

• Identify and assess natural capital: Gain a clear understanding of the natural resources your organization relies on and their impact on your operations.
• Integrate into decision-making: Use natural capital data to inform strategic decisions, ensuring long-term sustainability and resilience.
• Enhance transparency and accountability: Communicate your organization's environmental impact and sustainability efforts to stakeholders effectively.
• Drive innovation: Encourage innovative solutions and practices that reduce environmental impact and enhance resource efficiency.

Who Should Use This Standard?

The BS 8632:2021 standard is ideal for a wide range of organizations, including:

• Corporations: Large and small businesses looking to integrate sustainability into their core operations.
• Non-profit organizations: Entities focused on environmental conservation and sustainable development.
• Government agencies: Public sector bodies aiming to lead by example in environmental stewardship.
• Consultants and advisors: Professionals providing guidance on sustainability and environmental management.

Benefits of Implementing Natural Capital Accounting

By adopting the BS 8632:2021 standard, organizations can reap numerous benefits, including:

• Improved risk management: Identify potential environmental risks and develop strategies to mitigate them.
• Cost savings: Optimize resource use and reduce waste, leading to significant cost reductions.
• Enhanced reputation: Demonstrate your commitment to sustainability, boosting your organization's reputation and stakeholder trust.
• Regulatory compliance: Stay ahead of environmental regulations and standards, avoiding potential legal issues.

Conclusion

The BS 8632:2021 Natural Capital Accounting for Organizations. Specification is an essential tool for any organization committed to sustainability and responsible environmental management. By implementing this standard, you can ensure that your organization not only meets current environmental expectations but also leads the way in sustainable practices.

Embrace the future of sustainable business with BS 8632:2021 and make a positive impact on the world around you.

BS 8632:2021

This standard BS 8632:2021 Natural Capital Accounting for Organizations. Specification is classified in these ICS categories:

• 03.060 Finances. Banking. Monetary systems. Insurance
• 13.020.20 Environmental economics

This British Standard provides specifications and guidance for the process of preparing natural capital accounts including minimum requirements for defining the scope of an account and the material impacts and dependencies; and documenting the data and process used to prepare the natural capital account.

There are two key accounting outputs of natural capital accounts prescribed – each with supporting schedules:

1. a Natural Capital Balance Sheet showing the organization’s dependency on natural capital assets; and

   NOTE 1 Scope 1 includes the natural capital assets the organization owns or has legal or voluntary responsibility for. Scope 2 includes other natural capital assets. Assets that are not owned by anyone might be included in Scope 1 or Scope 2 depending on the organization and materiality of its impacts and dependencies.

2. a Natural Capital Income Statement showing the positive and negative impacts of the organization on natural capital assets.

   NOTE 2 Scope 1 includes the impacts from the organization’s own operations. Scope 2 includes the impacts attributed to the organization through the operations of its value chain.

This British Standard is applicable to organizations of all types (public, third sector and listed and unlisted private) across all sectors, and of any size (such as SMEs and larger businesses) and to one or more sites in which they operate. A group of organizations dependent on the same natural capital assets, or considering collaborating to change their impacts, may produce joint natural capital accounts. This standard is applicable internationally.

This British Standard is intended to be used by those who will be preparing the natural capital accounts. These could be environmental and sustainability professionals, accountants, economists and others working in collaboration.

The natural capital account aims to provide beneficial information to managers of organizations, and their stakeholders such as investors, auditors and those responsible for assurance, certification bodies, regulators/policy makers, customers and the wider public. The standard recognizes that the process of preparing the accounts could be as informative as the results presented in the accounting outputs.

This British Standard does not apply to national or sector-wide natural capital accounts, which are covered by the UN System of Environmental-Economic Accounting – Ecosystem Accounting (UN SEEA-EA) [1] within the context of the System of National Accounts.¹

Although the primary focus of the UN SEEA-EA is on nation-wide accounts, many of its principles and methods are relevant to, and can be applied to, organizational natural capital accounts. The data gathered by national authorities for UN SEEA-EA can also be used by organizations.