Natural capital & business
Natural Capital Protocol
Definition
The Natural Capital Protocol is a decision-making framework, developed by the Natural Capital Coalition (now the Capitals Coalition) and published in 2016, that enables organisations to identify, measure and value their direct and indirect impacts and dependencies on natural capital. It follows four stages — Frame, Scope, Measure & Value, Apply — and is sector-agnostic, with accompanying sector guides.
References
definition as decision framework, impacts and dependencies, TNFD relationship
Overview
What it means
The Protocol does not prescribe a single valuation method; it standardises the process so that results are consistent and comparable within an organisation's decision-making. It underpins later frameworks including the TNFD's LEAP approach.
How it is used
Companies apply it to sourcing, site and product decisions; financial institutions use it in risk screening; it informs natural capital assessments in sustainability strategy.
Why it matters
The Protocol turned "natural capital" from a metaphor into an operational business process — the reference point for corporate nature measurement before TNFD. **Note:** In-batch merge: 1824 "Natural Capital Protocol application" → this entry.