In a global context marked by the climate crisis, the loss of natural capital and growing geopolitical and social risks, the energy sector is called to play a key role not only in the decarbonization of the economy, but also in the construction of a more resilient and fair development model.
This is one of the conclusions from which the document is based “Natural capital and the Spanish energy sector“a pioneering initiative promoted by the Working Group on Natural Capital and Energy, which brings together eight large companies in the Spanish energy sector, among which is Naturgy. This report is the result of a collaborative process between them and proposes a change in the way nature is integrated into business decision-making.
From sustainability to natural capital
For years, sustainability has been associated above all with the reduction of negative impacts. The natural capital approach, explain the authors of the report, goes one step further and proposes recognizing nature as a strategic asset that provides value to the economy and society, at the same level as financial, human or social capital.
This comprehensive view allows us to better understand both the dependencies that companies have on ecosystems—water, soil, climate regulation—and the positive and negative impacts generated by their activities. Furthermore, this type of collaboration is especially relevant for the energy sector, due to its supporting role in the economy and its ability to drive large-scale changes.
In fact, one of the most notable elements of the document is the value of collaboration. Since 2018, the companies that are part of this working group have jointly developed a common framework to integrate natural capital into their internal processes, coordinated by specialized entities and aligned with international standards such as the Natural Capital Protocol. The result is a practical sector guide designed as a technical tool and also as a reference for other companies and sectors that want to move in the same direction.
Nieves Cifuentes, corporate head of Environment and Social Responsibility at Naturgy, summarizes the work carried out as “it has helped us look at our relationship with nature in a different way, not only from the impact, but from the dependency and the opportunity. In his opinion, “it is a fundamental first step to make better decisions and move towards a truly sustainable energy transition.”
Measure to decide
One of the main results of the work is a qualitative matrix of impacts and dependencies of the natural capital of the energy sector in Spain, prepared by technologies and at a sectoral scale. The analysis evaluates more than 80 ecosystem services linked to the different activities of the energy sector, from electricity generation to transportation, distribution or gas infrastructure.
The work shows that, along with the impacts of industrial activity, there are also relevant positive contributions, especially in the regulation and maintenance of ecosystems, protection against natural risks or the improvement of scientific and environmental knowledge. Identifying these aspects, according to the report, is key to guiding investments, strengthening the resilience of assets and anticipating physical, regulatory and financial risks.
The document arrives in an increasingly demanding regulatory environment, with frameworks such as the 2030 Agenda, the Paris Agreement, the new Global Biodiversity Framework or emerging frameworks with the TNFD, which require companies to measure, manage and communicate with greater rigor and transparency their impacts and dependencies on nature. In this scenario, the natural capital approach is emerging as a strategic tool to respond to double materiality, improve the quality of the sustainability report and reinforce the confidence of investors, regulators and society.
A starting point
The authors of the report insist that the document is not an end point, but rather the beginning of a process that opens the door to new case studies and practical applications at an organizational level. According to their conclusions, integrating nature into decision-making not only contributes to its protection, but also reinforces the solidity of business models in the long term.
The working group defends that the energy transition will only be truly transformative if it advances hand in hand with a transition towards a positive economy for nature, and maintains that the Spanish energy sector has demonstrated, with this initiative, to have the knowledge, capacity and will to lead this change.