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A new approach to managing Natural Capital
Sustainability is about more than data—it’s about driving real change. We’re developing a model to help farmers voluntarily improve natural capital. This approach uses nationally consistent indicators and encourages farmers to contribute to regional environmental priorities identified by Australia’s existing network of science-based regional and catchment natural capital organisations.
The Australian cotton industry is revamping its sustainability data framework to drive coordinated action on natural capital management. This new approach aims to simplify decision-making for growers, align actions with regional priorities, and support the growing global demand for sustainability reporting.
With customers increasingly expecting detailed environmental data, this model offers more than compliance—it provides growers with clear guidance on managing natural assets, such as biodiversity and native vegetation, in ways that are both practical and impactful.
Tackling barriers to change
Research from Cotton Research and Development Corporation (CRDC) highlights two key challenges to improving natural capital on farms:
- Growers are confused by the volume and inconsistency of messages around biodiversity and carbon and natural capital, they don’t know who to trust. For many, the safest thing to do is to do nothing
- If they do take action, they want to be sure:
- it’s the best thing for their location (biodiversity varies by region, so having a one-size-fits-all approach doesn’t work)
- others in their region or catchment are working to the same outcomes (many farmers working towards a shared goal will have a much greater impact than many growers taking well-meaning but ad-hoc actions).
Drawing on this research and building on a native vegetation collaboration since 2021 with Natural Resource Management (NRM) Regions Australia, and the seven NRM regions where cotton is traditionally grown, the Australian cotton industry is advocating for a whole new approach that directly addresses their barriers.
Science-based regional planning processes and consistent metrics can be the glue for coordinated national natural capital action.
The model we have developed, in consultation with many stakeholders, involves:
- Establishing harmonised natural capital indicators and definitions across sectors and jurisdictions, to allow natural capital to be efficiently and accurately measured. The cotton industry’s revamped sustainability data framework provides the basis for this
- Aligning natural capital extension and advice by agriculture industries, governments and other organisations with existing regional or catchment natural resource planning processes by organisations like NRM or Landcare. In this way, if a farmer chooses to take voluntary action on their farm to improve natural capital, all the advice and support they get from any source will be consistently directed at helping them contribute to identified regional priorities
- Better coordinating all the existing effort and advice and resources available – from governments, customers, impact investors, industries, volunteers and others – so that it is funnelled directly to farmers to take actions that contribute to identified regional priorities
- Using those harmonised indicators and measurement methods to consistently report natural capital at farm, regional, industry, state and national scale in a way that makes sense and helps farmers make better decisions.
Benefits for growers and the industry
As well as addressing the current barriers to natural capital action, this model is designed to have many benefits:
- It builds on existing institutions across Australia and seeks to better coordinate existing resources and funding instead of needing significant new funding.
- It is designed for growers, so they can make decisions using data specifically designed to boost their productivity, resilience, and market access.
- It aligns action on farm to local evidence-based environmental priorities, which:
- gives farmers confidence their actions are what is most needed
- gives global customers and stakeholders confidence the industry is taking an independent and science-based approach
- pinpoints investment to where it is most impactful, for companies that need to demonstrate they are taking meaningful action to improve natural capital.
By shifting the system around farmers, voluntary actions automatically align with regional environmental priorities. Farmers receive clear, consistent advice and targeted support, making it easier to contribute meaningfully if they choose to act.
What’s Next?
The concept is already gaining traction, with efforts underway to secure support from stakeholders across sectors.
If you’d like to learn more or contribute to this initiative, contact: talktous@cotton.com.au.
