Accounting for Natural Capital in Japanese Companies : From Biodiversity Conservation to Value Creation of Natural Capital

This study analyses natural capital management in Japanese companies from an accounting perspective. We used data from Nikkei and Toyo Keizai to clarify the current status of natural capital accounting and biodiversity conservation activities in Japanese companies. Furthermore, we conducted case studies of Sanden, Kirin, Toshiba, Sekisui Chemical and Eisai, which have been implementing advanced practices in natural capital management and accounting. First, the importance of intangible assets in corporate management and accounting is increasing, especially in a sustainable society, and the measurement and disclosure of natural capital is necessary. We found that the number of environmental accounting and environmental reports by Japanese companies has been decreasing, while the number of integrated reports that include natural capital has been increasing. Finally, we discuss the significance of natural capital accounting, from environmental accounting to sustainability accounting and from biodiversity conservation to value creation.