Can natural capital accounting bring accountability for nature?

With increasing global ecosystem degradation, new ways of governing the relationship between people and nature are needed. As Western societies increasingly turn to the emerging practice of Natural Capital Accounting (NCA), this is a critical time to consider its institutional role. In this paper we consider the effectiveness of NCA in bringing accountability for nature. This study theorises the link between accountability and NCA practice and explores this link empirically through quantitative and qualitative analyses of four methods of practice - the Capitals Coalition, Integrated Reporting, the System of Environmental Economic Accounting – Ecosystem Accounting, and Accounting for Nature®. The study found that NCA methods employ a range of technical mechanisms for delivering accountability, including data processes, external audit, and participation of, and transparency with, stakeholders; however, there were substantial limitations for their effectiveness. Our results highlight five challenges for NCA in delivering accountability for nature, underpinned by the broader governance environment in which this institution operates. We discuss governance options for bringing accountability for nature both with, and without, NCA. The findings of this study will help academics and policy makers to design institutional arrangements which are fit-for-purpose for bringing accountability for nature.