Materiality Assessment of Natural Capital Risks in Australian Forestry

Abstract Purpose of Review Natural capital is a term for the stocks natural assets (e.g. resources and ecosystems) that yield flows ecosystem services benefit economy human well-being. Forestry one industries with greatest dependencies on capital, as well having potential substantial positive or negative impacts capital. These create direct risks to forestry enterprise’s ongoing financial viability, which translate into indirect investors society. There are growing demands from variety stakeholders more reliable information assess such risks, but at present, these not always understood, assessed communicated in consistent comparable way. This paper addresses this problem by applying standardized methodology develop first systematic, evidence-based review materiality assessment Australian sector. Recent Findings The vast scope can be reduced twenty key areas relevance forestry, only seven nine have been highly financially material each sub-sectors softwood plantations, hardwood plantations native forestry. majority related part due fact current regulations certification schemes focus managing impacts, tend overlook dependencies. Nearly all rated likely exacerbated climate change. Summary An improved understanding an important input better decision-making enterprises, their lenders investors, regulators other relevant stakeholders. contributes preparedness industry its address questions about vulnerability future changes declining trends