Taking the debate on nature's value to the valuers [A follow on funding bid based upon the AHRC Research Network on 'Debating Nature's Value']

Lead Research Organisation: University of East Anglia
Department Name: Politics Philosophy Lang & Comms Studies

Abstract

This project takes the critical debate on the project of seeking to numerically capture nature's value, a debate that has been occurring in the academy and with some practitioners, fully to those responsible for doing that numerical-economic valuation.

We will engage with those responsible for delivering a new key government policy - that of the economic valuation of nature - with a view to informing and potentially critiquing/modifying that policy. The project follows up our Research Network on the same topic by bringing the ideas that were crystallized in that Network directly to the attention of Parliamentarians and other policy-makers, via dialogue with the accountants who will be key in the implementation of that policy.

The project will build on the discussion papers, book and academic papers, which explored the discourse of 'natural capital' as a mode of valuing and evaluating nature that emerged from the Research Network. (These comprise the findings of our Network, partly crystallised in the 'Glossary of terms' we produced (https://www.anglia.ac.uk/global-sustainability-institute-gsi/research/global-risk-and-resilience/debating-natures-value/glossary-of-terms ).)
These already-existing outputs/ resources will stimulate the beginning of a series of new discussions that we will host in London and that will cascade further around the UK's accountants who will be responsible for computing the value of "natural capital". The key deliverable will be a report based on these dialogues that will be presented to Parliamentarians and to our top-level contacts at DEFRA, including Michael Gove.

The timetable we envisage is realistic:

[Dec 2018 Initial discussions and planning amongst network members and with ICAEW, prior to the grant's official start.]
Jan to Aug 2019 Papers, seminars, briefing document; interim documents shared where appropriate with civil servants, Parliamentarians, Ministers.
Sept to Nov 2019 Production of final report
Dec 2019 Presentation of final report to Parliamentarians at a special 'Chatham House rule' meeting of the 'Limits to Growth' and 'Agroecology' APPGs.

The project will be led by: Dr Rupert Read (PI (of the DNV network)), Prof Aled Jones (Co-I (of the DNV network)), and Richard Spencer (Head of Sustainability at the ICAEW, and a key player in the Natural Capital Coalition).

The project details have been developed in close collaboration with ICAEW, which will provide rooms for the seminars, access to its membership, and relevant contacts, including with the Natural Capital Coalition (currently based, helpfully for our purposes, at ICAEW HQ).

The AHRC Research Network on Debating Nature's Value to which this is a Follow-on-Funding bid brought a number of academic disciplines - the creative arts, philosophy, theology, literary studies and environmental humanities - into a debate traditionally dominated by economics and biophysical sciences. This bid reveals the way in which the Arts & Humanities have something unique to contribute to this issue (and, by analogy, to various similar further issues). We seek to bring about a thoughtful change in policy-makers' understanding and conduct with regard to 'natural capital'; and we seek thereby to illustrate that and how the kind of >questioning< that our disciplines bring concretely to bear is otherwise missing. This kind of fundamental questioning - e.g., of the metaphorical and potential political consequences of conceptualising nature as a kind of capital, or of ecosystems as essentially providing human beings with 'services' - is of a kind that only Arts and Humanities accomplish. Our project shows the relevance and influence of Arts and Humanities in the corridors of power; it shows how subjects that are sometimes seen as 'lightweight' or other-worldly can be seen and felt to be influential, and uniquely so.
...And all this, at what is (because of Brexit) a crucial moment in the history of this (crucial) issue.

Planned Impact

Here is a key example of our Network in action, with a view to Impact: http://data.parliament.uk/writtenevidence/committeeevidence.svc/evidencedocument/environmental-audit-committee/25-year-environment-plan/written/79050.html . This was evidence we submitted to the Environmental Audit Committee.
>It encapsulates the kind of perspective we will bring to the dialogues we are now aiming for in this Follow-on bid. Commission a short series of short discussion papers on the uses and potential implications and potential pitfalls of "natural capital" framed in the language of accountants. These papers will emerge from the recently-concluded Research Network / from participants therein.
> Hold a series of seminars at ICAEW headquarters in London, based on those discussion papers.
> Produce a briefing document (based on the upshot of the seminars) for circulation around ICAEW members to encourage local discussions in ICAEW branches.
> Produce and publish a report for policy-makers drawing on the key results emerging from all of the above.
> Present that report (a jt. presentation by ICAEW members and project academics) to key Parliamentarians, including the Secretary of State for the Environment, at a session of the APPG 'Limits to Growth' at Westminster (most likely a joint session with the APPG Agroecology); and at a session for civil servants in Whitehall.
> Produce a short series of short films and multi-media items to publicise the events and outcomes further - and for use by busy civil servants, politicians and other policy-makers, some of whom (in our experience) would rather watch a short film on their devices while in transit than wade through written documents, however pertinent.
 
Description The concept of natural capital sets out that the natural world consists of resources - including land, water, flora and fauna - and that these can be valued in monetary terms and considered alongside other forms of capital, such as machinery, buildings, and stocks of money.
As well as being bought and sold in the market, natural capital can also be used by policy-makers, for example when carrying out a cost-benefit analysis on a piece of land. A simple example could be whether a forest left standing would be worth more or less than the logs after the trees had been chopped down. Natural Capital has succeeded in putting nature firmly at the top of the conservation agenda, with a desire to 'balance the books' in terms of nature's resources, and ensure that there is 'no net loss' in terms of biodiversity.
There are two key features of natural capital that make it very different from 'ordinary' capital: divisibility and substitutability. Ordinary capital can be divided into separate pieces, and this is particularly true of financial capital, which is divisible into each cent or penny. Natural capital differs because the whole essence of ecology is interdependence. Because of the interconnections, isolating particular pieces and valuing them separately is therefore highly questionable.
Capital is also easy to substitute: for example currencies are being traded and substituted for each other all the time. Nature is not like that: each place or habitat is unique. However, with natural capital, once places are given a monetary value, substitution becomes theoretically possible, if ecologically dubious. In addition, there is the thorny question of who carries out the valuation. Is it the scientists or the accountants?
Our project has centred on a partnership with ICAEW, and the accountants who would be at the forefront of Natural Capital Accounting, challenging the prevalent economic arguments with ecological and philosophical concerns around the value of nature. Through a series of seminars, and a meeting in Parliament hosted by MP Caroline Lucas, we have aimed to give voice to alternative, more nuanced viewpoints, and put forward some alternative approaches through a report for policy makers, including recommendations for protection of biodiversity in the UK (other outputs have included working papers, videos, and a book chapter).
We maintain that natural capital has a justified role in rhetoric, communication, and argumentation, although not necessarily in the details of policy-making. We are aware that any set of ideas intended to rival or replace natural capital must do the same job of drawing attention to the significance of the natural world and its protection. There are many simple answers to the question "what is your alternative?" Many alternatives simply haven't been seen as alternatives to the concept of "natural capital" before, but they could include:
>> Use of the tax system
>> Use of government payments and other incentives
>> International funds and payments
>> Regulation of utilities
>> Publicly funded and resilient infrastructure development
>> Rules about trade and setting standards for imports
>> Protected areas where 'development' is banned
>> Protected species, including in trade
>> Changes in company law and reporting requirements
>> Regulations on product standards and environmental impacts
>> Use of planning legislation
>> Changes in behavior and consumption patterns
>> Targets for environmental performance, with monitoring & reporting
Exploitation Route The work that was done with ICAEW lead to online resources that will be available to their membership, should serve to better inform potential practitioners of natural capital accounting. The work done with politicians and civil servants may also serve to provide policy alternatives that have arisen through discussions with the networks of academics, accountants, conservationists and business. We look forward to continuing some of the collaborations, and seeing new relationships built in the work to protect biodiversity and out natural spaces at a local and national level.
Sectors Environment,Financial Services, and Management Consultancy,Government, Democracy and Justice

URL http://www.aru.ac.uk/dnv
 
Description Findings from our research were presented to Members of Parliament, Members of European Parliament, practitioners and policy members at various events, including the joint APPG briefing. These discussions centred on importance of a cautious approach to the use of Natural Capital as anything other than conceptual. Conversations with accountants have developed with a new relationship being build between our project team, ICAEW and the Corporate Accountability Network (CAN). The interest in sustainable cost accounting, or true cost accounting, is growing, and our work is being cited in that. Some of those present worked closely with the Government Department of Environment, Food and Rural Affairs (DEFRA), and a similar event aimed at civil servants, especially working at DEFRA was proposed. This is still in the planning stages, but again shows an appetite to broaden understanding. At the conclusion of the APPG meeting, one of the MPs present explicitly enquired on what she should be doing to protect biodiversity in her constituency. After the event our project admin manager (Felicity Clarke) was contacted by a Senior Parliamentary Advisor, requesting further information from the project team, including the slides that had been presented at the request of two further MPs who were interested. She reported that interest in Natural Capital was building in Westminster, as the Environment Bill came out and in anticipation of the Biodiversity COP. The findings of our work are used as a counterpoint to the less nuanced approach of the economists.
First Year Of Impact 2020
Sector Environment
Impact Types Policy & public services

 
Description Joint APPG briefing
Geographic Reach National 
Policy Influence Type Participation in a guidance/advisory committee
 
Description CAN 
Organisation Corporate Accountability Network
Country United Kingdom 
Sector Private 
PI Contribution Following on from the paper and presentation to the Debating Nature's Value workshop hosted by the Institute of Chartered Accountants in England and Wales, a subsequent workshop called 'Accounting for the climate crisis' was set up and took place on 18 March. The workshop was inspired by Professor Richard Murphy's (Director of the Corporate Accountability Network) recent thinking and paper on Sustainable cost accounting. This paper examined whether it would be possible for businesses to calculate the cost of taking carbon out of their operations and to record that cost as a liability on the balance sheet. The ICAEW thought that this was an interesting and timely challenge and would like to explore the idea further. This embedded the thinking coming from our discussions and debates and built on the work to further enhance the argument within ICAEW. Prof Richard Murphy was also offered a position as a Visiting Professor at ARU to further build on this relationship.
Collaborator Contribution The workshop is focussed on the following question: If organisations were required to take carbon out of their operations, how would this be reflected in the financial statements? The ICAEW brought together a diverse group of senior stakeholders including preparers, auditors, sustainability experts and academics to explore this question. The workshop will be chaired by Jake Green, Chair of ICAEW's Financial Reporting Committee. The discussions on the day will be used to help ICAEW determine its policies and activities in relation to climate change. It gave an enhanced platform to the Corporate Accountability Network. The honorary role awarded to Prof Murphy (as Director of CAN) allowed for further collaboration with academia through Anglia Ruskin University (a partner on the project)
Impact Working Paper by Richard Murphy (see publications) was the starting point of this collaboration. several meetings and conversations were held as a result. An event was agreed and arranged, but fell outside of the grant reporting period. Multi-disciplinary: accountancy and finance, sustainability, geography
Start Year 2020
 
Description ICAEW 
Organisation The Institute of Chartered Accountants in England and Wales
Country United Kingdom 
Sector Private 
PI Contribution This grant was centred on a partnership with ICAEW, in which we worked closely with their Head of Sustainability, Richard Spencer, to open wider discussions around the use of Natural Capital valuations in practice to their networks through a series of seminar events, featuring speakers from our Debating Nature's Value network, including Co-I Prof Aled Jones, and other key guest contributors. While ICAEW were one of the founding organisations of the Natural Capital Coalition, and were keen to embed natural capital accounting within the business practices of their members, our aim was to add more voices and more nuanced perspectives to discussions of natural capital. Part of this is a more explicit distinction between talking about natural capital as a conceptual communication tool, or natural capital as a means to make monetary valuations. We presented accountants with counterarguments to the use of Natural Capital Accounting, with emphasis on the importance of a precautionary principle approach. Our researcher, Prof Victor Anderson worked from their London offices as part of a secondment within this project, which served to allow a productive collaboration between Prof Anderson and Richard Spencer and his team. One of the key outputs from their work together was a report for policy makers, which is relevant particularly to the new Environment Bill and the discussions leading up to the major global conference on biodiversity scheduled to take place in China, October 2020. The project also produced a series of videos, to be available as a resource via the ICAEW website, to be available for all their members to reference.
Collaborator Contribution ICAEW is a world leading professional membership organisation and regulatory body, and a thought leader in finance and accountancy practice, they provide technical expertise that includes the practice of Natural Capital Accountancy. To the academic team at UEA and ARU, this practitioner perspective was invaluable. Working closely with the project's steering group, including with Prof Victor Anderson during his secondment, Head of Sustainability Richard Spencer (along with his team) team actively engaged with the project, contributing business and finance insight, co-authoring reports and also presenting a paper as part of the seminar series. -Supporting a membership of over 150,000 chartered accountants, plus a wider network benefiting from their knowledge and training opportunities, the well-respected institute is extremely well-connected to those working in finance and accountancy. Access to this network allowed for a broader discussion with some of those involved in practical action to place monetary value on natural capital, as well as those who will potentially face this issue in the future. Through this partnership,credibility was given to alternative viewpoints surrounding the practical application of a complex concept, allowing for much greater understanding. - In addition to the hosting of online resources, such as the videos created for the project, via their website, ICAEW also hosted some of the events at their London HQ. This central location was 'home territory' for members of their networks, encouraging attendance and allowing for the free exchange of ideas. ICAEW also provided desk space for Prof Victor Anderson to work from their offices, to allow for greater collaboration, resulting in the papers and reports, such as the above mentioned report for policy makers.
Impact Report for policy makers (in draft) Video series press release Disciplines: accountancy and finance; wildlife conservation; philosophy
Start Year 2019
 
Description ICAEW Seminars 
Form Of Engagement Activity Participation in an activity, workshop or similar
Part Of Official Scheme? No
Geographic Reach National
Primary Audience Professional Practitioners
Results and Impact Our collaboration with the accountants involves a process of commissioning papers, giving different perspectives on the "natural capital" concept, and discussing via a series of seminars. As accountants are tasked with producing the valuation figures, and contributing to policy in companies and at national level, we hope that through this exploration of different positions will help to widen their understanding of these undertakings.
We held three* such seminars, each with around 20 attendees, featuring expert speakers within our networks.
27.06.2019 - Prof Richard Murphy talks about his paper on Sustainable Cost Accounting, followed by Prof Victor Anderson discussing his paper on the concept of natural capital and the problems with it's inclusion in policy making (see "publications")
28.10.2019 - Speakers John O'Neill and Aled Jones address the use of a theoretical model as policy, and the risks to ecosystems if those monetary valuations are put in place. (see "publications")
14.11.2019 - Deepak Rughani (Co-Director of Biofuelwatch) talk about the implications of "the commodification of nature", Dr Tom Maddox discussed his work with Dr Katie Bolt on what economics can and cannot achieve in responding to the biodiversity crisis. Tom and Katie are Co-Managers of the Natural Capital Hub at the Cambridge Conservation Initiative.
All events involved the pre-circulation of two discussion pieces from the speakers, and allowed lots of time for engagement with and discussion around the issue from the attendees. These events were publicised to our DNV network, and also to ICAEW networks in order to engage primarily with practitioners
*Unfortunately an event scheduled for September with Andy Purvis (IPBES) and Richard Spencer (ICAEW) had to be cancelled due to personal circumstances, but we were able to reschedule Andy for the joint APPG event in January 2020. (see "Influence on policy")
Year(s) Of Engagement Activity 2019,2020
URL https://figshare.com/projects/Debating_Nature_s_Value/72683
 
Description Open Farm Visit 
Form Of Engagement Activity Participation in an open day or visit at my research institution
Part Of Official Scheme? No
Geographic Reach Local
Primary Audience Public/other audiences
Results and Impact In June 2019, the team visited an Open Farm day in the local area (near Ely, Cambridgeshire), to ask attendees their views on the concept of "monetising nature". We also asked them to talk about their ideas on ways to protect their local environment for future generations. Many spoke of their enjoyment of accessing local natural spaces, from parks to woodlands, and felt that it had value to them and their families. Several spoke of the cost of accessing privately managed spaces, and felt there was a duty to keep nature open to all. The question of how nature as a public good should be funded was discussed, revealing different views about the use of taxation, but a desire to reallocate existing resource and investment to keeping green spaces accessible.
Year(s) Of Engagement Activity 2019
URL https://figshare.com/articles/DNV_Case_Studies/11948745