Accounting for extinction: an innovative tool for ecological improvement

Purpose 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. Design/methodology/approach 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. Findings 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. Originality/value 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.