Leveraging natural capital accounting to support businesses with nature-related risk assessments and disclosures.

Nature loss threatens businesses, the global economy and financial stability. Understanding and addressing these risks for business will require credible measurement approaches and data. This paper explores how natural capital accounting (NCA) can support business data and information needs related to nature, including disclosures aligned with the Taskforce on Nature-related Financial Disclosures recommendations. As businesses seek to measure, manage and disclose their nature-related risks and opportunities, they will need well-organized, consistent and high-quality information regarding their dependencies and impacts on nature, which few businesses currently collect or track in-house. NCA may be useful for these purposes but has not been widely used or applied by businesses. National NCA guided by the U.N. System of Environmental-Economic Accounting may provide: (i) a useful framework for businesses in conceptualizing, organizing and managing nature-related data and statistics; and (ii) data and information that can directly support business disclosures, corporate NCA and other business applications. This paper explores these opportunities as well as synergies between national and corporate natural capital accounts. In addition, the paper discusses key barriers to advancing the wider use and benefits of NCA for business, including: awareness of NCA, data access, business capabilities related to NCA, spatial and temporal scales of data, audit and assurance considerations, potential risks, and costs and incentives. This article is part of the theme issue 'Bringing nature into decision-making'.

Urban landcover differentially drives day and nighttime air temperature across a semi-arid city.

Semi-arid urban environments are undergoing an increase in both average air temperatures and in the frequency and intensity of extreme heat events. Within cities, different composition and densities of urban landcovers (ULC) influence local air temperatures, either mitigating or increasing heat. Currently, understanding how combinations of ULC influence air temperature at the block to neighborhood scale is necessary for heat mitigation plans, and yet limited due to the complexities integrating high-resolution ULC with spatial and temporally high-resolution microclimate data. We quantify how ULC influences air temperature at 60 m resolution for day and nighttime climate normals and extreme heat conditions by integrating microclimate sensor data sensor and high-resolution (1 m2) ULC for Denver, Colorado's urban core. We derive ULC drivers of air temperature using a structural equation model, then use a random forest algorithm to predict air temperatures for 30-year climate normals and an extreme heat condition. We find that, in conjunction with other ULC, urban tree canopy reduces daytime air temperatures (-0.026 °C per % cover), and the combination of impervious surfaces and buildings increases daytime air temperature (0.021 °C per % cover). Compared to daytime hours, nighttime irrigated turf temperature cooling effects are increased from being non-significant to -0.022 °C per % cover, while tree canopy effects are reduced from -0.026 °C during the day to -0.016 °C at night. Overall, ULC drives ~17% and 25% of local air temperature during the day and night, respectively. ULC influence on daytime air temperatures is altered in extreme heat events, both depending on the ULC type and time of day. Our findings inform urban planners seeking to identify potential hot and cool spots within a semi-arid city and mitigate high urban air temperatures through using ULC within larger urban climate mitigation strategies.

Testing ecosystem accounting in the United States: A case study for the Southeast.

Ecosystem accounts, as formalized by the System of Environmental-Economic Accounting Experimental Ecosystem Accounts (SEEA EEA), have been compiled in a number of countries, yet there have been few attempts to develop them for the U.S. We explore the potential for U.S. ecosystem accounting by compiling ecosystem extent, condition, and ecosystem services supply and use accounts for a ten-state region in the Southeast. The pilot accounts address air quality, water quality, biodiversity, carbon storage, recreation, and pollination for selected years from 2001 to 2015. Results illustrate how information from ecosystem accounts can contribute to policy and decision-making. Using an example from Atlanta, we also show how ecosystem accounts can be considered alongside other SEEA accounts to give a more complete picture of a local area's environmental-economic trends. The process by which we determined where to place metrics within the accounting framework, which was strongly informed by the National Ecosystem Services Classification System (NESCS), can provide guidance for future ecosystem accounts in the U.S. and other countries. Finally, we identify knowledge gaps that limit the inclusion of certain ecosystem services in the accounts and suggest future research that can close these gaps and improve future U.S. ecosystem accounts.

A rasterized building footprint dataset for the United States.

Microsoft released a U.S.-wide vector building dataset in 2018. Although the vector building layers provide relatively accurate geometries, their use in large-extent geospatial analysis comes at a high computational cost. We used High-Performance Computing (HPC) to develop an algorithm that calculates six summary values for each cell in a raster representation of each U.S. state, excluding Alaska and Hawaii: (1) total footprint coverage, (2) number of unique buildings intersecting each cell, (3) number of building centroids falling inside each cell, and area of the (4) average, (5) smallest, and (6) largest area of buildings that intersect each cell. These values are represented as raster layers with 30 m cell size covering the 48 conterminous states. We also identify errors in the original building dataset. We evaluate precision and recall in the data for three large U.S. urban areas. Precision is high and comparable to results reported by Microsoft while recall is high for buildings with footprints larger than 200 m2 but lower for progressively smaller buildings.

Author Correction: A rasterized building footprint dataset for the United States.

An amendment to this paper has been published and can be accessed via a link at the top of the paper.

Economic, land use, and ecosystem services impacts of Rwanda's Green Growth Strategy: An application of the IEEM+ESM platform.

We develop and link the Integrated Economic-Environmental Modeling (IEEM) Platform to ecosystem services modeling (ESM). The IEEM+ESM Platform is an innovative decision-making framework for exploring complex public policy goals and elucidating synergies and trade-offs between alternative policy portfolios. The IEEM+ESM approach is powerful in its ability to shed light on (i) change in land use and ecosystem services driven by public policy and the supply and demand responses of businesses and households; and (ii) impacts on standard economic indicators of concern to Ministries of Finance such as gross domestic product and employment, as well as changes in wealth and ecosystem services. The IEEM+ESM approach is being adopted rapidly and by the end of 2020, IEEM+ESM Platforms will be implemented for about 25 countries. To demonstrate the insights generated by the IEEM+ESM approach, we apply it to the analysis of alternative green growth strategies in Rwanda, a country that has made strong progress in reducing poverty and enhancing economic growth in the last 15 years. The case of Rwanda is particularly compelling as it faces intense pressure on its natural capital base and ecosystem services, already with the highest population density in Africa, which is projected to double by 2050. In applying IEEM+ESM and comparing the outcomes of Rwanda's green growth policies, increasing fertilization of agricultural crops shows the largest economic gains but also trade-offs in environmental quality reflected through higher nutrient export and reduced water quality. Combining crop fertilization with forest plantations better balances critical ecosystem services and their role in underpinning economic development as Rwanda progresses toward its target of middle-income status by 2035. This application to Rwanda's green growth strategy demonstrates the value-added of the IEEM+ESM approach in generating results that speak to both economic outcomes and impacts on market and non-market ecosystem services.

Reimagining the potential of Earth observations for ecosystem service assessments.

The benefits nature provides to people, called ecosystem services, are increasingly recognized and accounted for in assessments of infrastructure development, agricultural management, conservation prioritization, and sustainable sourcing. These assessments are often limited by data, however, a gap with tremendous potential to be filled through Earth observations (EO), which produce a variety of data across spatial and temporal extents and resolutions. Despite widespread recognition of this potential, in practice few ecosystem service studies use EO. Here, we identify challenges and opportunities to using EO in ecosystem service modeling and assessment. Some challenges are technical, related to data awareness, processing, and access. These challenges require systematic investment in model platforms and data management. Other challenges are more conceptual but still systemic; they are byproducts of the structure of existing ecosystem service models and addressing them requires scientific investment in solutions and tools applicable to a wide range of models and approaches. We also highlight new ways in which EO can be leveraged for ecosystem service assessments, identifying promising new areas of research. More widespread use of EO for ecosystem service assessment will only be achieved if all of these types of challenges are addressed. This will require non-traditional funding and partnering opportunities from private and public agencies to promote data exploration, sharing, and archiving. Investing in this integration will be reflected in better and more accurate ecosystem service assessments worldwide.

Ecosystem service flows from a migratory species: Spatial subsidies of the northern pintail.

Migratory species provide important benefits to society, but their cross-border conservation poses serious challenges. By quantifying the economic value of ecosystem services (ESs) provided across a species' range and ecological data on a species' habitat dependence, we estimate spatial subsidies-how different regions support ESs provided by a species across its range. We illustrate this method for migratory northern pintail ducks in North America. Pintails support over $101 million USD annually in recreational hunting and viewing and subsistence hunting in the U.S. and Canada. Pintail breeding regions provide nearly $30 million in subsidies to wintering regions, with the "Prairie Pothole" region supplying over $24 million in annual benefits to other regions. This information can be used to inform conservation funding allocation among migratory regions and nations on which the pintail depends. We thus illustrate a transferrable method to quantify migratory species-derived ESs and provide information to aid in their transboundary conservation.

Identification of conservation and restoration priority areas in the Danube River based on the multi-functionality of river-floodplain systems.

Large river-floodplain systems are hotspots of biodiversity and ecosystem services but are also used for multiple human activities, making them one of the most threatened ecosystems worldwide. There is wide evidence that reconnecting river channels with their floodplains is an effective measure to increase their multi-functionality, i.e., ecological integrity, habitats for multiple species and the multiple functions and services of river-floodplain systems, although, the selection of promising sites for restoration projects can be a demanding task. In the case of the Danube River in Europe, planning and implementation of restoration projects is substantially hampered by the complexity and heterogeneity of the environmental problems, lack of data and strong differences in socio-economic conditions as well as inconsistencies in legislation related to river management. We take a quantitative approach based on best-available data to assess biodiversity using selected species and three ecosystem services (flood regulation, crop pollination, and recreation), focused on the navigable main stem of the Danube River and its floodplains. We spatially prioritize river-floodplain segments for conservation and restoration based on (1) multi-functionality related to biodiversity and ecosystem services, (2) availability of remaining semi-natural areas and (3) reversibility as it relates to multiple human activities (e.g. flood protection, hydropower and navigation). Our approach can thus serve as a strategic planning tool for the Danube and provide a method for similar analyses in other large river-floodplain systems.

Social equity shapes zone-selection: Balancing aquatic biodiversity conservation and ecosystem services delivery in the transboundary Danube River Basin.

Freshwater biodiversity is declining, despite national and international efforts to manage and protect freshwater ecosystems. Ecosystem-based management (EBM) has been proposed as an approach that could more efficiently and adaptively balance ecological and societal needs. However, this raises the question of how social and ecological objectives can be included in an integrated management plan. Here, we present a generic model-coupling framework tailored to address this question for freshwater ecosystems, using three components: biodiversity, ecosystem services (ESS), and a spatial prioritisation that aims to balance the spatial representation of biodiversity and ESS supply and demand. We illustrate this model-coupling approach within the Danube River Basin using the spatially explicit, potential distribution of (i) 85 fish species as a surrogate for biodiversity as modelled using hierarchical Bayesian models, and (ii) four estimated ESS layers produced by the Artificial Intelligence for Ecosystem Services (ARIES) platform (with ESS supply defined as carbon storage and flood regulation, and demand specified as recreation and water use). These are then used for (iii) a joint spatial prioritisation of biodiversity and ESS employing Marxan with Zones, laying out the spatial representation of multiple management zones. Given the transboundary setting of the Danube River Basin, we also run comparative analyses including the country-level purchasing power parity (PPP)-adjusted gross domestic product (GDP) and each country's percent cover of the total basin area as potential cost factors, illustrating a scheme for balancing the share of establishing specific zones among countries. We demonstrate how emphasizing various biodiversity or ESS targets in an EBM model-coupling framework can be used to cost-effectively test various spatially explicit management options across a multi-national case study. We further discuss possible limitations, future developments, and requirements for effectively managing a balance between biodiversity and ESS supply and demand in freshwater ecosystems.

Towards globally customizable ecosystem service models.

Scientists, stakeholders and decision makers face trade-offs between adopting simple or complex approaches when modeling ecosystem services (ES). Complex approaches may be time- and data-intensive, making them more challenging to implement and difficult to scale, but can produce more accurate and locally specific results. In contrast, simple approaches allow for faster assessments but may sacrifice accuracy and credibility. The ARtificial Intelligence for Ecosystem Services (ARIES) modeling platform has endeavored to provide a spectrum of simple to complex ES models that are readily accessible to a broad range of users. In this paper, we describe a series of five "Tier 1" ES models that users can run anywhere in the world with no user input, while offering the option to easily customize models with context-specific data and parameters. This approach enables rapid ES quantification, as models are automatically adapted to the application context. We provide examples of customized ES assessments at three locations on different continents and demonstrate the use of ARIES' spatial multi-criteria analysis module, which enables spatial prioritization of ES for different beneficiary groups. The models described here use publicly available global- and continental-scale data as defaults. Advanced users can modify data input requirements, model parameters or entire model structures to capitalize on high-resolution data and context-specific model formulations. Data and methods contributed by the research community become part of a growing knowledge base, enabling faster and better ES assessment for users worldwide. By engaging with the ES modeling community to further develop and customize these models based on user needs, spatiotemporal contexts, and scale(s) of analysis, we aim to cover the full arc from simple to complex assessments, minimizing the additional cost to the user when increased complexity and accuracy are needed.

Recreation economics to inform migratory species conservation: Case study of the northern pintail.

Quantification of the economic value provided by migratory species can aid in targeting management efforts and funding to locations yielding the greatest benefits to society and species conservation. Here we illustrate a key step in this process by estimating hunting and birding values of the northern pintail (Anas acuta) within primary breeding and wintering habitats used during the species' annual migratory cycle in North America. We used published information on user expenditures and net economic values (consumer surplus) for recreational viewing and hunting to determine the economic value of pintail-based recreation in three primary breeding areas and two primary wintering areas. Summed expenditures and consumer surplus for northern pintail viewing were annually valued at $70M, and annual sport hunting totaled $31M (2014 USD). Expenditures for viewing ($42M) were more than twice as high than those for hunting ($18M). Estimates of consumer surplus, defined as the amount consumers are willing to pay above their current expenditures, were $15M greater for viewing ($28M) than for hunting ($13M). We discovered substantial annual consumer surplus ($41M) available for pintail conservation from birders and hunters. We also found spatial differences in economic value among the primary regions used by pintails, with viewing generally valued more in breeding regions than in wintering regions and the reverse being true for hunting. The economic value of pintail-based recreation in the Western wintering region ($26M) exceeded that in any other region by at least a factor of three. Our approach of developing regionally explicit economic values can be extended to other taxonomic groups, and is particularly suitable for migratory game birds because of the availability of large amounts of data. When combined with habitat-linked population models, regionally explicit values could inform development of more effective conservation finance and policy mechanisms to enhance environmental management and societal benefits across the geographically dispersed areas used by migratory species.

On the effects of scale for ecosystem services mapping.

Ecosystems provide life-sustaining services upon which human civilization depends, but their degradation largely continues unabated. Spatially explicit information on ecosystem services (ES) provision is required to better guide decision making, particularly for mountain systems, which are characterized by vertical gradients and isolation with high topographic complexity, making them particularly sensitive to global change. But while spatially explicit ES quantification and valuation allows the identification of areas of abundant or limited supply of and demand for ES, the accuracy and usefulness of the information varies considerably depending on the scale and methods used. Using four case studies from mountainous regions in Europe and the U.S., we quantify information gains and losses when mapping five ES - carbon sequestration, flood regulation, agricultural production, timber harvest, and scenic beauty - at coarse and fine resolution (250 m vs. 25 m in Europe and 300 m vs. 30 m in the U.S.). We analyze the effects of scale on ES estimates and their spatial pattern and show how these effects are related to different ES, terrain structure and model properties. ES estimates differ substantially between the fine and coarse resolution analyses in all case studies and across all services. This scale effect is not equally strong for all ES. We show that spatially explicit information about non-clustered, isolated ES tends to be lost at coarse resolution and against expectation, mainly in less rugged terrain, which calls for finer resolution assessments in such contexts. The effect of terrain ruggedness is also related to model properties such as dependency on land use-land cover data. We close with recommendations for mapping ES to make the resulting maps more comparable, and suggest a four-step approach to address the issue of scale when mapping ES that can deliver information to support ES-based decision making with greater accuracy and reliability.

A methodology for adaptable and robust ecosystem services assessment.

Ecosystem Services (ES) are an established conceptual framework for attributing value to the benefits that nature provides to humans. As the promise of robust ES-driven management is put to the test, shortcomings in our ability to accurately measure, map, and value ES have surfaced. On the research side, mainstream methods for ES assessment still fall short of addressing the complex, multi-scale biophysical and socioeconomic dynamics inherent in ES provision, flow, and use. On the practitioner side, application of methods remains onerous due to data and model parameterization requirements. Further, it is increasingly clear that the dominant "one model fits all" paradigm is often ill-suited to address the diversity of real-world management situations that exist across the broad spectrum of coupled human-natural systems. This article introduces an integrated ES modeling methodology, named ARIES (ARtificial Intelligence for Ecosystem Services), which aims to introduce improvements on these fronts. To improve conceptual detail and representation of ES dynamics, it adopts a uniform conceptualization of ES that gives equal emphasis to their production, flow and use by society, while keeping model complexity low enough to enable rapid and inexpensive assessment in many contexts and for multiple services. To improve fit to diverse application contexts, the methodology is assisted by model integration technologies that allow assembly of customized models from a growing model base. By using computer learning and reasoning, model structure may be specialized for each application context without requiring costly expertise. In this article we discuss the founding principles of ARIES--both its innovative aspects for ES science and as an example of a new strategy to support more accurate decision making in diverse application contexts.

Market forces and technological substitutes cause fluctuations in the value of bat pest-control services for cotton.

Critics of the market-based, ecosystem services approach to biodiversity conservation worry that volatile market conditions and technological substitutes will diminish the value of ecosystem services and obviate the "economic benefits" arguments for conservation. To explore the effects of market forces and substitutes on service values, we assessed how the value of the pest-control services provided by Mexican free-tailed bats (Tadarida brasiliensis mexicana) to cotton production in the southwestern U.S. has changed over time. We calculated service values each year from 1990 through 2008 by estimating the value of avoided crop damage and the reduced social and private costs of insecticide use in the presence of bats. Over this period, the ecosystem service value declined by 79% ($19.09 million U.S. dollars) due to the introduction and widespread adoption of Bt (Bacillus thuringiensis) cotton transgenically modified to express its own pesticide, falling global cotton prices and the reduction in the number of hectares in the U.S. planted with cotton. Our results demonstrate that fluctuations in market conditions can cause temporal variation in ecosystem service values even when ecosystem function--in this case bat population numbers--is held constant. Evidence is accumulating, however, of the evolution of pest resistance to Bt cotton, suggesting that the value of bat pest-control services may increase again. This gives rise to an economic option value argument for conserving Mexican free-tailed bat populations. We anticipate that these results will spur discussion about the role of ecosystem services in biodiversity conservation in general, and bat conservation in particular.