Browsing by Author "Kokkonen, Hannes"

The concept of natural capital encompasses resources found in nature, both biotic and abiotic. Natural capital accounting is a method to assess these assets in monetary terms. Currently, natural capital accounting is not mandatory, but it offers a valuable tool for a holistic valuation of the asset base. Scholars have noted that the current unsustainable use of natural capital resources may ultimately lead to reduced profits due to natural degradation and natural capital accounting is a step to make the difference to reveal nature’s true value. Natural capital accounting is suggested as a beneficial tool for quantifying natural capital assets in monetary terms. Natural capital accounting is currently future-oriented method to answer possible legislation changes and offers a portfolio-like view of assets for different stakeholders. Forests holds various resources that produce a variety of benefits, not limited to trees alone In many countries worldwide, forests are primarily publicly owned. However, in Europe, especially in Finland, forest ownership is predominantly private. Many of natural capital accounting guidelines lack a private perspective. Therefore, this study aims to develop natural capital accounts for a Finnish forest property entity of 3808 hectares in the Pirkanmaa region. The framework employed for this purpose is the Corporate Natural Capital Accounting (CNCA) framework by eftec. From a corporate standpoint, the CNCA framework proves effective in providing a comprehensive overview of natural capital assets. CNCA assigns value for asset owners and for society while maintaining flexibility for further analysis and extensions. In this study, natural capital accounting for private forest owners is addressed through the accounting of forest holdings. Asset valuation was assembled using quantitative data from open sources and third-party data, employing meta-analysis. Prices were determined based on market prices and meta-analysis. This study also emphasizes the importance of discounting in valuation. It's worth noting that the discount rate is not expected to be identical for a company and for society due to the concept of intergenerational discounting. This concept prioritizes present sustainability for the sake of future generations, underscoring its greater significance.