This study introduces a novel accounting approach that integrates accounting for species extinction into financial decision-making. By incorporating natural and human-societal capital into traditional accounting frameworks, this method redefines how organisations can assess the true cost of species extinction, supporting more sustainable economic development.
A new approach to accounting for extinction is developed, integrating natural and human-societal capital into traditional financial reporting frameworks. Grounded in extinction accounting, this method captures both biodiversity loss and opportunities for conservation and restoration, providing a comprehensive view of the economic cost of species extinction.
Applying this approach to the extinction risk of a single species (the honey bee) in a specific geographical area (France), our results demonstrate the increasing cost of inaction. The study highlights how failing to address biodiversity decline leads to mounting ecological and economic consequences.
By combining extinction accounting with existing methods that call for fully integrating social and ecological dimensions into accounting practice, this research presents a transformative method for biodiversity assessment. It establishes accounting as a strategic tool for driving sustainable economic development, offering a fresh perspective on integrating environmental considerations into financial decision-making.
