prEN ISO 14008

SLOVENSKI STANDARD oSIST prEN ISO 14008:2020 01-junij-2020 Denarno vrednotenje vplivov na okolje in povezanih okoljskih vidikov - Načela, zahteve in smernice (ISO 14008:2019) Monetary valuation of environmental impacts and related environmental aspects - Principles, requirements and guidelines Monetäre Bewertung von Umweltauswirkungen und damit verbundenen Umweltaspekten - Prinzipien, Anforderungen und Leitlinien

Évaluation monétaire des impacts environnementaux et des aspects environnementaux

2003-01.Slovenski inštitut za standardizacijo. Razmnoževanje celote ali delov tega standarda ni dovoljeno.

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Foreword ..........................................................................................................................................................................................................................................v

Introduction ................................................................................................................................................................................................................................vi

1 Scope ................................................................................................................................................................................................................................. 1

2 Normative references ...................................................................................................................................................................................... 1

3 Terms and definitions ..................................................................................................................................................................................... 1

3.1 Environmental impacts and environmental aspects .............................................................................................. 1

3.2 Environmental economics ............................................................................................................................................................ 3

4 Principles ..................................................................................................................................................................................................................... 5

4.1 General ........................................................................................................................................................................................................... 5

4.2 Description of principles ................................................................................................................................................................ 5

4.2.1 Accuracy .................................................................................................................................................................................. 5

4.2.2 Completeness ...................................................................................................................................................................... 5

4.2.3 Consistency ........................................................................................................................................................................... 5

4.2.4 Credibility .............................................................................................................................................................................. 5

4.2.5 Relevance ...................................................................... .......................................................................................................... 6

4.2.6 Transparency ...................................................................................................................................................................... 6

5 Planning a monetary valuation ............................................................................................................................................................. 6

5.1 General ........................................................................................................................................................................................................... 6

5.2 Goal of the monetary valuation and its intended audience .............................................................................. 7

5.3 Specification of the environmental impact or aspect ............................................................................................ 7

5.4 People whose preferences and perspectives are considered ......................................................................... 8

5.5 Elements of the total economic value captured ......................................................................................................... 8

5.6 Monetary valuation method ........................................................................................................................................................ 9

6 Requirements and procedures for monetary valuation ...........................................................................................10

6.1 General ........................................................................................................................................................................................................10

6.2 Market price proxies .......................................................................................................................................................................10

6.2.1 Market prices of traded goods and labour .............................................................................................10

6.2.2 Cost-of-illness method .............................................................................................................................................11

6.3 Revealed preference methods.................................................................................................................................................11

6.3.1 General...................................................................................................................................................................................11

6.3.2 Averting cost method ................................................................................................................................................12

6.3.3 Hedonic pricing method .........................................................................................................................................13

6.3.4 Travel cost method ......................................................................................................................................................13

6.3.5 Data derived from public referendums .....................................................................................................14

6.4 Stated preference methods .......................................................................................................................................................14

6.4.1 General...................................................................................................................................................................................14

6.4.2 Contingent valuation .................................................................................................................................................16

6.4.3 Choice experiment .......................................................................................................................................................16

6.5 Value transfer ........................................................................................................................................................................................17

6.5.1 General...................................................................................................................................................................................17

6.5.2 Spatial value transfer ................................................................................................................................................18

6.5.3 Temporal value transfer .........................................................................................................................................18

6.6 Currency and base year adjustments ...............................................................................................................................18

6.6.1 General...................................................................................................................................................................................18

6.6.2 Currency adjustments ..............................................................................................................................................18

6.6.3 Base year adjustments .............................................................................................................................................18

6.6.4 Simultaneous adjustments of currency and base year ................................................................19

6.7 Equity weighting.................................................................................................................................................................................19

6.8 Discounting .............................................................................................................................................................................................19

6.8.1 General...................................................................................................................................................................................19

6.8.2 Discounting at a constant rate...........................................................................................................................20

6.8.3 Discounting at varying rates ...............................................................................................................................20

6.9 Analysis of uncertainty and sensitivity ...........................................................................................................................21

7 Linking monetary values of environmental impacts to related environmental aspects ........21

8 Quality check .........................................................................................................................................................................................................22

9 Reporting ...................................................................................................................................................................................................................22

Annex A (informative) Flowchart on an application of this document ..........................................................................25

Annex B (informative) Assessing similarities in value transfer — Example of non-timber

forest ecosystem services .........................................................................................................................................................................27

Annex C (informative) Monetary valuation in welfare economics .....................................................................................28

Annex D (informative) Example of a database format ....................................................................................................................31

Bibliography .............................................................................................................................................................................................................................32

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This document was prepared by Technical Committee ISO/TC 207, Environmental management,

Any feedback or questions on this document should be directed to the user’s national standards body. A

Private and public organizations are facing risks and opportunities due to the beneficial or adverse

environmental impacts and related environmental aspects of their activities. The monetary valuation

of these environmental impacts and related aspects supports organizations in developing business

models and practices that are more sustainable. Using monetary valuation does not mean that money is

This document is for all organizations that wish to undertake monetary valuation studies or review,

compile or use the results. Organizations often have experience in assessing at least some environmental

aspects and environmental impacts resulting from their activities in physical units. To further integrate

this information in decisions, it is useful to determine the monetary values of these environmental

impacts and/or of related environmental aspects. Monetary valuations enable comparisons and trade-

offs between different environmental issues and between environmental and other issues. This is

useful in, for example, organizational strategy and investment considerations, product and service

design, management accounting, performance evaluation, environmental monitoring and reporting,

Monetary valuation methods determine monetary values of changes in the environment and not the

This document supports environmental and risk management methods, such as cost-benefit analysis,

The main purpose of the document is to increase the awareness, comparability and transparency of

the monetary valuation of environmental impacts and related environmental aspects. It demonstrates

the benefits that monetary valuation methods offer to users. To achieve this purpose, standardized

and transparent documentation of the methods, data and assumptions used to derive monetary values

is essential. The multiplicity of monetary values, methods to determine monetary values, and ethical

This document provides a framework that includes principles, requirements and guidance for the

monetary valuation of environmental impacts and related environmental aspects, following the

principles of welfare economics. Monetary valuation methods in this document can also be used to value

actual or potential impacts on natural capital, for example, abiotic resources, biodiversity, ecosystems

and ecosystem services. The impacts valued could result from environmental aspects and from the

dependencies of organizations on the environment. Environmental impacts can occur on the stocks and

quality of natural capital, affecting associated flows of benefits (including for human health).

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.

In this document, many methodological requirements or recommendations are intended for people

assessing 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

This document addresses the planning of a monetary valuation (see Clause 5), the monetary valuation

itself (see Clause 6), the way in which links between environmental impacts valued in monetary terms

and related environmental aspects are established (see Clause 7), checking the quality of the monetary

This document specifies a methodological framework for the monetary valuation of environmental

impacts and related environmental aspects. Environmental impacts include impacts on human health,

and on the built and natural environment. Environmental aspects include releases and the use of

The monetary valuation methods in this document can also be used to better understand organizations’

During the planning of the monetary valuation, the intended use of the results is considered but the use

In this document, monetary valuation is a way of expressing value in a common unit, for use in

comparisons and trade-offs between different environmental issues and between environmental

and other issues. The monetary value to be determined includes some or all values reflected in the

concept of total economic value. An anthropocentric perspective is taken, which asserts that natural

environment has value in so far as it gives utility (well-being) to humans. The monetary values referred

to in this document are economic values applied in trade-offs between alternative resource allocations,

This document does not include costing or accounting, although some valuation methods have the term

“cost” in their name. This document does not include the development of models linking environmental

NOTE In this document, what is valued in monetary terms is either environmental impacts or environmental

aspects. When valuing environmental impacts of an organization, it is important that links between

ISO and IEC maintain terminological databases for use in standardization at the following addresses:

surroundings in which an organization operates, including air, water, land, natural resources (3.1.5),

Note 1 to entry: Environment includes natural capital, ecosystem services (3.2.11), climate, abiotic services and

[SOURCE: ISO 14001:2015, 3.2.1, modified — A new Note 1 and Note 2 to entry have replaced the

natural resource (3.1.5), ecosystem service (3.2.11), product or service, marketed or not, that satisfies

Note 2 to entry: In ISO 14040, the term “product” is defined as “any goods or service”.

change to the environment (3.1.1), whether adverse or beneficial, wholly or partially resulting from an

element of an organization’s activities or products or services that interacts or can interact with the

Note 1 to entry: An environmental aspect can cause (an) environmental impact(s) (3.1.3). A significant

environmental aspect is one that has or can have one or more significant environmental impact(s).

Note 2 to entry: Significant environmental aspects are determined by the organization applying one or more

dynamic complex of plant, animal and micro-organism communities, and their non-living environment

EXAMPLE Deserts, coral reefs, wetlands, rain forests, boreal forests, grasslands, urban parks, cultivated

[SOURCE: ISO 14040:2006, 3.30, modified — The term has been changed to singular form.]

series of consecutive, causal relationships, ultimately starting at an environmental aspect (3.1.4) and

Note 1 to entry: A synonym for environmental impact pathway is “cause-effect chain”.

Note 2 to entry: It can be considered a system of interlinked environmental mechanisms.

quantity of environmental impact (3.1.3) per quantity of environmental aspect (3.1.4)

maximum amount of money an individual is prepared to give up to secure an environmental

Note 1 to entry: In practice, WTP and willingness to accept compensation (WTA) (3.2.2) appear to diverge, often

substantially, and with WTA > WTP. Hence, the choice of WTP or WTA can be of importance.

minimum amount of money an individual is prepared to accept as compensation to forgo an

Note 1 to entry: In practice, willingness to pay (WTP) (3.2.1) and WTA appear to diverge, often substantially, and

amount of money representing willingness to pay (WTP) (3.2.1) or willingness to accept compensation

Note 1 to entry: What is valued in monetary terms by default is marginal changes in quality or quantity of goods

(3.1.2). It is not the absolute value of any given good or service that is valued. The size of change depends on the

Note 2 to entry: Commonly, the WTP distribution in a given population is skewed. While mean WTP is the

theoretically correct measure to use, for example, in cost-benefit analyses, median WTP can be argued to be

the better predictor of what the majority of people would actually be willing to pay if the WTP distribution is

monetary value (3.2.3) of a good (3.1.2) in relation to its actual, planned or possible use

monetary value (3.2.3) of a good (3.1.2) independent of its actual, planned or possible use

monetary value (3.2.3) placed by an individual on a market good (3.1.2) from which the individual’s

monetary value (3.2.3) expressed by an individual through survey-based response for a good (3.1.2) in a

Note 1 to entry: The market of the good to be valued does not exist or exists but the change valued is not

transfer of a monetary value (3.2.3) estimate from a primary monetary valuation (3.2.4) study to

group of people whose well-being, utility or values are influenced directly or indirectly by the

Note 1 to entry: These are generally distinguished into provisioning, regulating, supporting and cultural services.

Ecosystem services include the provisioning of goods (3.1.2) (e.g. food, fuel, raw materials, fibre), regulating

services (e.g. climate regulation, disease control), and non-material benefits (cultural services) (e.g. spiritual or

aesthetic benefits). The supporting services are necessary for the production of all other ecosystem services (e.g.

soil formation, nutrient cycling, water cycling) and are also referred to as “ecosystem functions”.

Note 2 to entry: Ecosystem services are sometimes called “environmental services” or “ecological services”.

Note 1 to entry: Total economic value does not encompass other kinds of values unrelated to human preferences.

factor applied to future monetary amounts in order to compute their present value

procedure to modify the costs and benefits incurred by people in different social and economic contexts

Note 1 to entry: The effect of equity weighting is to make willingness to pay (3.2.1) or willingness to accept