ABSTRACT
Over the past decade, businesses have faced unprecedented demands from governments and stakeholders to account for the risks they face from climate change as well as their firms’ impacts on climate. These very same demands have begun – in fits and starts – to focus on natural capital. Public and private efforts to incorporate nature into business decisions across the globe are advancing rapidly and significantly yet remain ignored in law reviews. This Essay explains and analyzes these new developments, which closely mirror the ‘climate playbook’ through monitoring, disclosure, and target-setting requirements. While following the climate playbook for natural capital may seem appealing, it presents distinct challenges. Unlike greenhouse gas emissions – globally fungible and uniform in impact – natural capital is non-fungible, varying across time, space, and type. Accounting for natural capital therefore imposes inherent tradeoffs. To avoid the risks of performative compliance and potential backlash, the Essay proposes a path forward grounded in bottom-up reporting and public participation to establish goals and assess tradeoffs.
Light, Sarah E and Salzman, James E, Incorporating Nature (September 24, 2025), 38 Georgetown Environmental Law Review (2025).
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