Accounting, accountability, assurance, financing and governance for rewilding and de-extinction

Abstract

Purpose Rewilding and de-extinction are strategies being adopted globally to address an urgent need for biodiversity protection and nature restoration. These strategies require immense funding to finance nature restoration and biodiversity enhancement, and forms of accounting and assurance are required to discharge accountability for the effective use of these funds. This study explores accounting, accountability, assurance, financing and governance for biodiversity protection and nature restoration, focusing on rewilding and de-extinction. Design/methodology/approach The study introduces a Special Issue of Accounting, Auditing and Accountability Journal devoted to “Accounting and Accountability for Rewilding, De-extinction and Biodiversity Protection” and portrays the contributions in this issue. We also present two case studies: the development of nature (biodiversity) credits by CreditNature to finance rewilding programmes, and the planned de-extinction of the woolly mammoth by Colossal Biosciences. Findings There are two key findings. First, we suggest that accounting and finance be universally treated and portrayed as a unified discipline since new developments, such as the evolution of nature fintech through the creation of nature credits, are inextricably linked to the reporting of, and accounting for, these new forms of finance and their impact on nature and biodiversity. Second, we consider the Task Force for Nature-related Financial Disclosures (TNFD) to accelerate the growth of nature finance. This can be interpreted and portrayed as an emancipatory accounting framework, contributing to engendering the development of nature credits and other forms of extinction finance. Research limitations/implications This investigation draws upon publicly available documents relating to the two cases. It lays the groundwork for further research on rewilding and de-extinction for proposing ways to increase the supply of private finance to meet the ever-growing demands for amelioration of the natural environment. Practical implications The study demonstrates the potential for the TNFD and other related frameworks for biodiversity and nature accounting to act as an emancipatory force in developing the key fields we identify as vital for rewilding and de-extinction, consequently enhancing biodiversity protection and nature restoration. Social implications Society is inextricably linked to nature. Species extinctions and biodiversity loss affect society, business and financial markets. Financing and accounting for rewilding and de-extinction are critical to the future protection and enhancement of biodiversity and to nature restoration globally. Originality/value To the best of the authors’ knowledge, this is the first paper to explore the accounting, accountability, finance and assurance aspects of rewilding and de-extinction.