In 1997, the global value of ecosystem services was estimated to average $33 trillion/yr in 1995 $US ($46 trillion/yr in 2007 $US). In this paper, we provide an updated estimate based on updated unit ecosystem service values and land use change estimates between 1997 and 2011. We also address some of the critiques of the 1997 paper. Using the same methods as in the 1997 paper but with updated data, the estimate for the total global ecosystem services in 2011 is $125 trillion/yr (assuming updated unit values and changes to biome areas) and $145 trillion/yr (assuming only unit values changed), both in 2007 $US. From this we estimated the loss of eco-services from 1997 to 2011 due to land use change at $4.3–20.2 trillion/yr, depending on which unit values are used. Global estimates expressed in monetary accounting units, such as this, are useful to highlight the magnitude of eco-services, but have no specific decision-making context. However, the underlying data and models can be applied at multiple scales to assess changes resulting from various scenarios and policies. We emphasize that valuation of eco-services (in whatever units) is not the same as commodification or privatization. Many eco-services are best considered public goods or common pool resources, so conventional markets are often not the best institutional frameworks to manage them. However, these services must be (and are being) valued, and we need new, common asset institutions to better take these values into account.

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Changes in the global value of ecosystem services

We examine a potential benefit associated with the initiation of voluntary disclosure of corporate social responsibility (CSR) activities: a reduction in firms’ cost of equity capital. We find that firms with a high cost of equity capital in the previous year tend to initiate disclosure of CSR activities in the current year and that initiating firms with superior social responsibility performance enjoy a subsequent reduction in the cost of equity capital. Further, initiating firms with superior social responsibility performance attract dedicated institutional investors and analyst coverage. Moreover, these analysts achieve lower absolute forecast errors and dispersion. Finally, we find that firms exploit the benefit of a lower cost of equity capital associated with the initiation of CSR disclosure. Initiating firms are more likely than non-initiating firms to raise equity capital following the initiations and among firms raising equity capital, initiating firms raise a significantly larger amount than do non-initiating firms.

Voluntary Nonfinancial Disclosure and the Cost of Equity Capital: The Initiation of Corporate Social Responsibility Reporting

We examine a potential benefit associated with the initiation of voluntary disclosure of corporate social responsibility (CSR) activities: a reduction in firms’ cost of equity capital. We find that firms with a high cost of equity capital in the previous year tend to initiate disclosure of CSR activities in the current year and that initiating firms with superior social responsibility performance enjoy a subsequent reduction in the cost of equity capital. Further, initiating firms with superior social responsibility performance attract dedicated institutional investors and analyst coverage. Moreover, these analysts achieve lower absolute forecast errors and dispersion. Finally, we find that firms exploit the benefit of a lower cost of equity capital associated with the initiation of CSR disclosure. Initiating firms are more likely than non-initiating firms to raise equity capital following the initiations; among firms raising equity capital, initiating firms raise a significantly larger amount t...

Cultural ecosystem services (ES) are consistently recognized but not yet adequately defined or integrated within the ES framework. A substantial body of models, methods, and data relevant to cultural services has been developed within the social and behavioral sciences before and outside of the ES approach. A selective review of work in landscape aesthetics, cultural heritage, outdoor recreation, and spiritual significance demonstrates opportunities for operationally defining cultural services in terms of socioecological models, consistent with the larger set of ES. Such models explicitly link ecological structures and functions with cultural values and benefits, facilitating communication between scientists and stakeholders and enabling economic, multicriterion, deliberative evaluation and other methods that can clarify tradeoffs and synergies involving cultural ES. Based on this approach, a common representation is offered that frames cultural services, along with all ES, by the relative contribution of relevant ecological structures and functions and by applicable social evaluation approaches. This perspective provides a foundation for merging ecological and social science epistemologies to define and integrate cultural services better within the broader ES framework.

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Contributions of cultural services to the ecosystem services agenda.

We examine the relationship between disclosure of nonfinancial information and analyst forecast accuracy using firm-level data from 31 countries. We use the issuance of standalone corporate social responsibility (CSR) reports to proxy for disclosure of nonfinancial information. We find that the issuance of standalone CSR reports is associated with lower analyst forecast error. This relationship is stronger in countries that are more stakeholder-oriented — i.e., in countries where CSR performance is more likely to affect firm financial performance. The relationship is also stronger for firms and countries with more opaque financial disclosure, suggesting that issuance of standalone CSR reports plays a role complementary to financial disclosure. These results hold after we control for various factors related to firm financial transparency and other potentially confounding institutional factors. Collectively, our findings have important implications for academics and practitioners in understanding the function of CSR disclosure in financial markets.

Nonfinancial Disclosure and Analyst Forecast Accuracy: International Evidence on Corporate Social Responsibility Disclosure

Voluntary environmental disclosure quality and firm value: Further evidence

Given the rising emphasis on environmental disclosures and the expressed importance of ‘good’ governance in determining the extent of information disclosure in general, we examine the relation between specific aspects of governance and media coverage and the quality of voluntary environmental disclosure (VED). Using a sample of 127 firms over a six-year period (2000 to 2005), we empirically test characteristics of governance and media in relation to VED. Our results suggest that VED quality is positively associated with environmental media coverage, negative environmental media and board attributes of independence, diversity, and expertise. Results from supplemental analysis suggest that institutional investors exert influence over managerial decisions on environmental reporting only in the face of negative environmental media. Additionally, results from longitudinal analyses indicate that the quality of environmental disclosures increases over time. Our conclusion discusses the implications of these findings.

Governance, Media and the Quality of Environmental Disclosure

https://pdxscholar.library.pdx.edu/cgi/viewcontent.cgi?article=1210&context=busadmin_fac

Although there has been increased attention to corporate environmental reports (CERs), there has yet to be a close examination of the metrics used in these reports. Metrics do not address the content of CERs, but, perhaps more importantly, metrics provide the means for conveying the content. In this paper, we analyze metrics used in 79 corporations' recent CER reports. We define and use an 'environmental sustainability' lens, and apply two environmental metrics taxonomies to CER metrics. We also consider the implications of key internal and external firm factors on CER metrics. Our findings suggest that (i) firms' compliance with ISO 14001 increases the presence of future oriented metrics, (ii) a majority of CER content uses lagging metrics with descriptive and operational performance information, (iii) larger firms are more likely than smaller firms to use future oriented metrics and (iv) there are noticeable differences across countries/regions in terms of CER metrics. Several important issues seem evident from the study. First, the metrics most commonly used in CERs provide little information about future performance. Second, the majority of metrics describe operations performance rather than environmental impact. Third, even though the sample was chosen based on a priori indicators of corporate environmental awareness, only about half of the companies sampled had a CER available. Copyright © 2003 John Wiley & Sons, Ltd. and ERP Environment

Corporate environmental reporting: what's in a metric?

Organizational management is specifi cally granted fi duciary responsibility over society’s economic resources, which consist of natural and human 
resources. Because of their privileged status, organizational management 
and the associated business professions play a central role in the long-term 
viability of a democratically governed society grounded in justice, equality, 
and trust. Acting in the public interest requires consideration of natural, 
social, and economic systems. Natural systems provide the context and 
sustenance for social systems and, therefore, must be respected, nurtured, 
and sustained. Social systems provide the context and purpose of economic 
systems. Business professionals, such as accounting and other information 
providers, analysts, and monitors; and regulatory agencies, such as the 
Securities and Exchange Commission (SEC),2 Environmental Protection 
Agency, and Food and Drug Administration, facilitate and scrutinize organizational management in carrying out their fi duciary responsibility.

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Darrell Brown

Papers

Voluntary environmental disclosure quality and firm value: Further evidence

Governance, Media and the Quality of Environmental Disclosure

Governance, Media and the Quality of Environmental Disclosure

Corporate environmental reporting: what's in a metric?

Triple Bottom Line: A Business Metaphor for a Social Construct