Environmental impacts include impacts on human health, and on the built and natural environment. Environmental aspects include releases and the use of natural resources. Monetary valuation of environmental impacts and related aspects supports organizations in developing business models and practices that are more sustainable. (Monetary valuation does not mean that money is the only metric of value.)
This document provides a framework for the monetary valuation of environmental impacts and related environmental aspects, following the principles of welfare economics and can:
- increase the awareness, comparability and transparency of the monetary valuation of environmental impacts and related environmental aspects
- demonstrate the benefits that monetary valuation methods offer to users
- help value actual or potential impacts on natural capital, for example, abiotic resources, biodiversity, ecosystems and ecosystem services
This document focuses on valuation methods and not on costing methods. This means that requirements and guidance on assessing costs are only given if costs are used as measures of monetary values.
Following these requirements and recommendations enables good practice of monetary valuation. The requirements in the reporting clause can assist the user of monetary values in assessing the quality of the monetary valuation study.