The Transition from Biodiversity to Extinction Accounting in the Chinese Context

Abstract

This chapter begins by describing biodiversity disclosure in China through a documentary analysis of the CSR reports of Chinese enterprises listed on the Fortune Global 500. The analysis explains the necessity to switch from biodiversity accounting to extinction accounting, using the example of the critically endangered Chinese sturgeon. The rationale for extinction accounting in China is elucidated in terms of traditional Chinese philosophies and religions, including Confucianism, Daoism, and Buddhism. This chapter also sheds light on how to apply extinction accounting in China from the perspectives of legal and regulatory mechanisms, engagement of nongovernmental organizations (NGOs), capital support from financial institutions, and biodiversity conservation programs with Chinese characteristics. It emphasizes that promoting extinction prevention at the country level will require more standardized disclosure rules, the involvement of regulatory organizations and NGOs, and dialogue between public and private sectors. Although the significance of extinction accounting has been widely discussed in recent years, the practical implementations of such disclosure frameworks in developing nations like China are less well known. This chapter provides a springboard for further research on the broader application and diverse effects of sustainability disclosures on extinction prevention.