A balance sheet approach to natural capital accounting

Summary

Little Blue Research produced a natural capital account for ofi, a multi-national food and agri-business, to understand the natural capital impacts and dependencies of one of their business units.

Client description

Capitals

Olam Food Ingredients (ofi)

80,000+ employees

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NATURAL

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Client need

Olam Food Ingredients (ofi) requested technical support to:

o review the current valuation of natural capital impacts for an entire crop supply chain and business operations, and their relevant natural capital profit and loss (NC P&L) statements for 2018 and 2019 in collaboration with Rosie Dunscombe.

o update and add to relevant valuation methods based on review outputs, and

o work with them to produce an updated NC P&L and a pilot natural capital balance sheet (NCBS) for one of their business units, identifying natural capital impacts and dependencies, and changes over time.

The challenge

Creating a NC P&L and NCBS, following, where possible, the recently launched BS 8632 natural capital accounting for organizations standard.

Updating and/or producing new environmental economic valuations for GHGs, land use change (deforestation), water use including the impact of scarcity events, pollination, soil health, food provisioning and reforestation.

The results

NC P&L review with recommendations for improvements to existing methods.

Natural capital income statement and natural capital balance sheet for 2018 and 2019 with appropriate notes and caveats.

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