Section (c) - Natural Capital Accounting

The biophysical metrics (ton of carbon, m3 of water, km2 of land restored or preserved, etc.) are calculated regularly and displayed in a Natural Capital Account (”NCA”). Once a NCA is locked and activated, the Opening Balance is recorded and serves as the initial High-Water Mark (”HWM”) or initial Ecological Integrity baseline to generate Natural Capital Units (”NCUs”). Recorded measurements that represent a positive improvement (uplift) of the NCA balance in accordance with the threshold of the respective NCU type increase the High-Water Mark of the NCA. Recorded measurements that represent a retention of state (preservation) of the NCA balance in accordance with the threshold of the respective NCU type maintain or increase the baseline of the NCA. The newly generated NCUs are attributed a monetary value and can either be held by their owner as Nature Equity Assets in their Nature Equity Account (”NEA”) or transferred to another owner (Buyer) under a Nature Equity Assets Purchase Agreement (”NEAPA”) as explained in Section (e).

Example for illustration purposes only