Natural capital accounting
What is Natural Capital Accounting?
Natural Capital Accounting (NCA) is a way of measuring and valuing the benefits we receive from nature in economic terms. Just like traditional accounting tracks financial assets, NCA tracks the value of natural resources - such as forests, water, soils, clean air, minerals, and biodiversity -and the essential services they provide to people, businesses and economies.
These natural assets, often taken for granted, support primary production, communities and our economy. In an agriculture context, there are numerous important natural assets, for example, soils that support the growth of crops, trees that provide shade and shelter, pollinators fertilising crops and insect-eating native birds and insects controlling pests. Natural Capital Accounting helps make these contributions visible and measurable, so they can be better managed and preserved.
Why it matters
- Informed decision-making: NCA gives governments, businesses and communities the data they need to make smarter, more sustainable choices.
- Economic resilience: By recognising the value of nature, NCA helps to reduce environmental risks and plan for long-term economic stability.
- Sustainability goals: NCA supports progress toward climate goals, biodiversity conservation, and the UN Sustainable Development Goals (SDGs).
How it works
Natural Capital Accounting integrates environmental data into national and corporate accounting systems. It involves:
- Measuring the quantity and condition of natural resources.
- Valuing their contribution to the economy and well-being.
- Tracking changes over time to guide policies and investment.
Many countries and organisations now use NCA as a tool for sustainable growth - aligning economic development with environmental stewardship.
Getting started
Getting started with NCA can begin with simple steps like assessing the natural assets on your property - such as native vegetation, soil health and water resources - and working to improve their condition over time. Engaging with local agricultural advisers, NCA consultants or NCA pilot programs can provide tools, frameworks and support to help incorporate natural capital into farm management and planning.
There are various advisors, consultants and providers that can conduct NCA assessments on your property. Please contact us if you’d like to get started with NCA.