Final Ecosystem Services for Corporate Metrics and Performance

Abstract

Ecosystem services approaches are material to business performance. However, the lack of sufficiently detailed and commonly used ecosystem services classification systems prevents companies from benefitting fully from them. The final ecosystem services perspective, embodied by the Final Ecosystem Goods and Services Classification System (FEGS-CS) and the National Ecosystem Services Classification System (NESCS), offers a way through key bottlenecks to mainstreaming ecosystem services in corporate decision-making and accounting. Compared to other systems, these are easier to use, improve materiality analysis, and aid stakeholder engagement. In addition, their potential to improve the accuracy of valuation makes them preferable for natural capital accounting. Companies that adopt this final ecosystem services (FES) perspective are likely to gain these immediate benefits and first-mover advantage, as this FES perspective is poised to become standard practice.