Macro-economic Dependencies on Ocean Ecosystems

1. Outcome

This Circular provides guidance on compiling indicators of macro-economic dependencies on ocean ecosystems, enabling national accountants and ocean managers to quantify how national economies rely on marine and coastal natural capital. Understanding these dependencies is essential for assessing nature-related risks, informing development finance decisions, and tracking progress toward sustainable ocean economies. The guidance addresses three decision use cases: quantifying GDP dependency on ocean ecosystem services for nature-related risk assessment aligned with the Taskforce on Nature-related Financial Disclosures (TNFD) framework; supporting national ocean economy reporting within medium-term expenditure frameworks as described in TG-1.1 Budget Processes; and tracking economic dependencies against SDG 14.7 on sustainable use of marine resources. The compilation approach integrates perspectives from the System of National Accounts, SEEA Ecosystem Accounting, and the TNFD dependency framework. The conceptual framework and key components of Ocean Accounts are introduced in TG-0.1 General Introduction, while the relevant statistical standards are described in TG-0.2 Standards Overview. Asset accounting foundations for marine natural capital are addressed in TG-3.1 Asset Accounts, and the identification and measurement of ocean economy sectors is covered in TG-3.3 Economic Activity Relevant to the Ocean. This Circular directly supports the integration of ocean accounts with national budget processes described in TG-1.1 Budget Processes, the compilation of ocean economy structural indicators in TG-2.5 Ocean Economy Structure, and investment analysis in TG-2.6 Ocean Investment.

2. Requirements

This Circular requires familiarity with:

• TG-0.1 General Introduction to Ocean Accounts -- for the conceptual framework and key components of Ocean Accounts, including the relationship between ecosystem assets, ecosystem services, and economic activity
• TG-0.2 Overview of Relevant Statistical Standards -- for the international statistical standards underpinning ocean accounting, including SNA 2025, SEEA Central Framework, SEEA Ecosystem Accounting, and classification systems
• TG-3.1 Asset Accounts -- for methodology on compiling physical and monetary accounts for marine environmental assets and ecosystem assets that underpin service provision
• TG-3.3 Economic Activity Relevant to the Ocean -- for guidance on identifying, classifying, and measuring ocean economy sectors using thematic and extended accounting principles

3. Guidance Material

Economic dependency on ocean ecosystems operates at multiple levels--from households relying on subsistence fisheries, to industries requiring clean water and healthy marine habitats, to national economies whose GDP depends significantly on ocean-related activities. This Circular provides the conceptual and methodological framework for measuring these dependencies at the macro-economic level, distinguishing between the direct contributions of ocean industries to national output and the broader dependencies of economic activity on marine ecosystem services. The guidance draws on the ocean accounts framework in SEEA Ecosystem Accounting^[1], the treatment of ecosystem services and economic activity in the 2025 SNA^[2], and the dependency and impact framework of the Taskforce on Nature-related Financial Disclosures^[3]. The dependency indicators compiled under this Circular feed directly into the structural analysis of ocean economies addressed in TG-2.5 Ocean Economy Structure and the investment analysis framework of TG-2.6 Ocean Investment, and they provide the evidence base for integrating nature-related considerations into national budget processes as described in TG-1.1 Budget Processes.

3.1 Conceptualizing Economic Dependencies

Economic dependencies on nature represent the reliance of economic actors on the flows of benefits from environmental assets and ecosystem services^[4]. The TNFD defines dependencies as "aspects of environmental assets and ecosystem services that a person or an organisation relies on to function"^[5]. In the context of ocean accounting, dependencies encompass the reliance of economic units--enterprises, industries, households, and governments--on the services provided by marine and coastal ecosystems.

Dependency pathways

The TNFD framework describes a dependency pathway as the mechanism through which "a particular business activity depends upon ecosystem services and specific features of natural capital (stocks of environmental assets)"^[6]. The pathway identifies how observed or potential changes in natural capital affect the costs and benefits of doing business. For ocean dependencies, these pathways link changes in marine ecosystem condition to economic outcomes through several channels:

• Provisioning services: Direct extraction of biomass (fisheries, aquaculture feed sources), water, and genetic resources from marine ecosystems
• Regulating services: Coastal protection from storms and erosion, water quality regulation, climate regulation through carbon sequestration, waste treatment
• Cultural services: Recreation, tourism, aesthetic and spiritual values associated with marine environments

The SNA production boundary establishes the scope of goods and services that constitute GDP, value added, and output^[7]. Ecosystem services, as defined in SEEA EA, largely remain outside this production boundary in conventional accounting^[8]. However, SEEA EA provides the framework for measuring these services in both physical and monetary terms, "complementing the estimates of output based on the SNA production boundary"^[9]. This complementarity is essential for understanding economic dependencies: the ocean economy as measured in conventional accounts captures only the direct production activities, while the full dependency on marine ecosystems extends to the regulating and cultural services that support but are not priced in market transactions. The relationship between the SNA production boundary and ecosystem services is detailed in TG-0.2 Overview of Relevant Statistical Standards, which provides the foundational explanation of how national accounts and environmental-economic accounts articulate. Readers who are unfamiliar with the SNA production boundary concept should consult that Circular before proceeding.

Types of dependency

Dependencies may be categorized by their relationship to the economic unit:

1. Direct dependencies occur when an economic activity directly uses ecosystem services as inputs to production. Marine fishing depends directly on fish stocks; coastal aquaculture depends on water quality and larval supply; maritime tourism depends on visual amenity and recreation services from healthy marine environments.

2. Indirect dependencies occur when an economic activity relies on inputs from other sectors that themselves depend on ecosystem services. A seafood restaurant depends indirectly on healthy fish stocks through its purchase of inputs from the fishing industry. A coastal hotel depends indirectly on waste assimilation services that maintain the water quality tourists expect.

3. Systemic dependencies represent the economy-wide reliance on ecosystem services that underpin the functioning of multiple sectors simultaneously. Coastal protection services benefit all economic activities in flood-prone coastal zones; climate regulation services benefit all sectors affected by temperature and weather patterns^[10].

Understanding these distinctions is important for interpreting dependency indicators: direct dependencies can be measured through the supply and use framework, while indirect and systemic dependencies require extended analysis such as input-output modelling.

3.2 Compilation Procedure for Ocean Economy Dependency Indicators

The compilation of macro-level dependency indicators follows a step-by-step procedure that extracts ocean economy sub-matrices from national supply and use tables and links them to ecosystem service accounts. The procedure adapts the methodology described in TG-2.5 Ocean Economy Structure Section 3.7 for the specific purpose of dependency measurement.

Step 1: Identify ocean economy industries

Using the industry classification concordance in TG-3.3 Economic Activity Relevant to the Ocean Section 3.3 (Table 2), identify all ISIC classes that constitute the ocean economy. For each class, determine whether it is wholly ocean-dependent (ocean ratio = 1.0) or partially ocean-related (ocean ratio < 1.0). Document the classification choices and ocean ratios applied. The list of ocean industries should include as a minimum:

• ISIC 0311 Marine fishing
• ISIC 0321 Marine aquaculture
• ISIC 5011, 5012 Sea and coastal water transport
• ISIC 0610, 0620 Offshore petroleum and natural gas extraction
• ISIC 3511 (partial) Offshore electric power generation
• ISIC 1020 Fish processing
• ISIC 3011, 3012 Shipbuilding
• ISIC 5222 Water transport support services
• ISIC 5510 (partial) Coastal accommodation

Step 2: Extract ocean economy sub-matrix from national SUTs

From the balanced national supply and use tables for the most recent complete accounting period, extract the columns corresponding to identified ocean economy industries. The extracted use table provides:

• Output by ocean industry
• Intermediate consumption by ocean industry
• Gross value added (GVA) by ocean industry
• Employment by ocean industry

For partially ocean-related industries, apply the ocean economy ratios determined in Step 1 to the extracted values.

Step 3: Calculate ocean economy direct GVA

Sum the gross value added across all ocean industries, applying ocean economy ratios where appropriate:

$$\text{Ocean Economy Direct GVA} = \sum_i (\text{GVA}_i \times \text{Ocean ratio}_i)$$

This yields the total value added directly attributable to ocean economic activity. This figure represents the direct contribution of the ocean economy to GDP and serves as the baseline for dependency ratio calculations.

Step 4: Compile ecosystem service accounts

Following the methodology in TG-3.2 Flows from Environment to Economy Section 3.3, compile physical supply and use tables for marine ecosystem services. The accounts should record at a minimum:

• Provisioning services: Fish provisioning (tonnes biomass), aquaculture support
• Regulating services: Carbon sequestration (tonnes carbon), coastal protection (hectares protected), water purification (volumes filtered)
• Cultural services: Recreation (visitor-days)

The supply table attributes ecosystem service flows to marine ecosystem types (coral reefs, mangroves, seagrass, pelagic, other). The use table attributes ecosystem service flows to economic users (fisheries, aquaculture, tourism, coastal properties, households, rest of world).

Step 5: Link ocean industries to ecosystem service use

Map each ocean industry to the ecosystem services it uses. This mapping establishes which ecosystem service accounts provide inputs to which ocean economy production accounts. The sector-ecosystem dependency matrix in Section 3.3 (Table 2) provides the starting point for this mapping, which should be refined using national data.

Step 6: Derive dependency ratios

Calculate the ocean economy dependency ratio as:

$$\text{Ocean-GDP Dependency Ratio} = \frac{\text{Ocean Economy Direct GVA}}{\text{National GDP}} \times 100$$

This headline indicator expresses the percentage of national GDP directly attributable to ocean economic activities. For budget applications described in TG-1.1 Budget Processes Section 3.3 (Table 1), this ratio populates the "Ocean share" column for the GDP contribution indicator.

For sector-specific dependency analysis, compute dependency ratios by industry:

$$\text{Industry Dependency Ratio}_i = \frac{\text{Ocean Industry GVA}_i}{\text{National GDP}} \times 100$$

3.3 Ocean Economy Share of GDP

The most widely used indicator of macro-economic dependence on the ocean is the share of Gross Domestic Product (GDP) attributable to ocean-related economic activities. The SEEA EA describes the ocean economy as measured "in terms of the contribution of the main ocean-related activities (e.g. marine transportation, coastal tourism, marine fishing, offshore mineral and gas extraction) to the national economy"^[11].

Measurement approach

Following the thematic and extended accounting principles described in TG-3.3 Economic Activity Relevant to the Ocean, ocean economy GDP is compiled by:

1. Identifying ocean industries using the International Standard Industrial Classification (ISIC), distinguishing between ocean-dependent industries (whose production is intrinsically linked to the ocean) and ocean-related industries (that provide goods and services to ocean-dependent activities)^[12]

2. Measuring gross value added (GVA) for each ocean industry, representing the value of output minus the value of intermediate consumption

3. Aggregating to ocean economy GVA, which represents the direct contribution of ocean activities to GDP

4. Calculating the ocean economy share as the ratio of ocean economy GVA to total national GDP

The key indicators derived are:

• Ocean economy GVA: The sum of gross value added across all ocean industries (in national currency units)
• Ocean economy share of GDP: Ocean economy GVA as a percentage of national GDP
• Ocean economy employment: Total persons employed or full-time equivalent positions in ocean industries
• Ocean economy share of employment: Ocean employment as a percentage of total national employment

For detailed guidance on industry classification and supply and use table compilation, see TG-3.3 Economic Activity Relevant to the Ocean.

Worked example: Ocean economy dependency ratio compilation

To illustrate the compilation of the ocean economy share of GDP using the step-by-step procedure, consider a country ("Country B") with national GDP of 50,000 million currency units and total employment of 10 million persons. Following Steps 1-6 above, the compiler has identified ocean industries, extracted data from national SUTs, and applied ocean ratios to partially ocean-related industries.

Table 1: Ocean economy sub-matrix extracted from national SUTs (Country B, million currency units)

Applying the ocean ratios to the partially ocean-related industries (fish processing, port services, coastal accommodation, other), the ocean-attributable GVA is:

• Fish processing: 120 × 0.80 = 96
• Port services: 250 × 0.90 = 225
• Coastal accommodation: 300 × 0.40 = 120
• Other ocean industries: 150 × 0.60 = 90

Total Ocean Economy Direct GVA = 300 + 150 + 400 + 96 + 225 + 120 + 90 = 1,381 million currency units.

Ocean-GDP Dependency Ratio = 1,381 / 50,000 × 100 = 2.76%.

Total ocean-attributable employment = 32,000 + 22,000 + 36,000 + (18,000 × 0.80) + (24,000 × 0.90) + (95,000 × 0.40) + (30,000 × 0.60) = 32,000 + 22,000 + 36,000 + 14,400 + 21,600 + 38,000 + 18,000 = 182,000 persons.

Ocean employment share = 182,000 / 10,000,000 × 100 = 1.82%.

This worked example demonstrates the full procedure from identifying industries through extracting SUTs to applying ocean ratios and computing dependency indicators. The results indicate that ocean-related activities directly contribute 2.76% of GDP and 1.82% of employment in Country B.

Interpretation considerations

The ocean economy share of GDP measures the direct contribution of ocean industries to national production but does not capture the full economic dependency on ocean ecosystems. Several interpretive considerations apply:

The indicator measures production, not dependency. An economy where ocean industries contribute 5% of GDP may still have much larger dependencies on ocean ecosystem services if, for example, coastal protection services prevent flooding that would damage assets across multiple non-ocean sectors. The GDP share measures what is produced, not what depends on ecosystem condition.

Ecosystem services largely remain outside GDP. Following the SNA production boundary, many ecosystem services--including regulating services like coastal protection and waste treatment--are not recorded as economic output^[13]. The SEEA EA notes that "measurement of ecosystem services, in both physical and monetary terms, through ecosystem accounting complements the estimates of output based on the SNA production boundary"^[14]. Compilers should present ocean economy GDP alongside ecosystem service accounts to provide a complete picture of economic relationships with the ocean. For guidance on ecosystem service flow accounts, see TG-2.4 Ecosystem Goods and Services.

Structural change affects interpretation over time. As economies develop, the composition of GDP shifts--typically toward services and away from primary industries. A declining ocean economy share may reflect diversification rather than reduced absolute dependence. Presenting both absolute values (ocean economy GVA in currency units) and relative shares provides fuller context.

Comparison across countries requires adjustment. Countries differ in their ocean area (EEZ size), coastal population, and economic structure. Per capita or per square kilometre normalisations may support international comparison, though care is needed in interpretation.

3.4 Ecosystem Service Dependencies

Beyond the ocean economy share of GDP, a fuller understanding of macro-economic dependencies requires analysis of how specific sectors depend on specific ecosystem services. The SEEA EA identifies the objective "to identify the share of economy-wide value added that is dependent on ecosystem services"^[15].

Sectoral dependency mapping

Sectoral dependency analysis identifies which ecosystem services each industry relies upon. For marine ecosystem services, the key dependencies by sector include:

Marine fishing (ISIC 0311): Depends directly on provisioning services (fish biomass, genetic diversity), regulating services (nursery habitat maintenance, water quality), and supporting services (primary production, nutrient cycling). Stock assessment accounts track the sustainable yield that represents the capacity of the ecosystem to maintain provisioning services over time^[16]. For detailed guidance on fish stock assessment and asset accounting, see TG-3.1 Asset Accounts, Section 3.3.1.

Marine aquaculture (ISIC 0321): Depends on water quality regulation (maintaining conditions suitable for cultured species), waste assimilation (capacity of surrounding waters to absorb aquaculture effluents), and provisioning services (wild-caught feed inputs, larval supply for some species). Condition accounts for coastal ecosystems provide indicators of the capacity to support aquaculture^[17]. See TG-3.9 Aquaculture Accounts for detailed methodology.

Coastal and marine tourism (portions of ISIC 55, 79, 93): Depends on cultural services (recreation, aesthetic values, spiritual and educational values) and regulating services (water quality for swimming and diving, beach stability from sediment regulation). Ecosystem condition variables such as water clarity, coral cover, and beach erosion rates indicate the capacity to support tourism services^[18].

Maritime transport (ISIC 50): Depends primarily on spatial access (the ocean as a medium for transport) but also on regulating services that maintain navigable conditions (sediment regulation in ports and channels, storm frequency affecting operations).

Offshore oil and gas (ISIC 06): Depends on mineral and energy resources rather than ecosystem services per se, though operations may be affected by marine conditions and weather extremes influenced by climate regulation services. See TG-3.10 Offshore Energy Accounts for specific guidance.

Coastal communities and households: Depend on multiple services including provisioning (subsistence fishing, aquaculture), regulating (coastal protection from storms, flood regulation, water purification), and cultural services (recreation, cultural identity, spiritual values).

Sector-Ecosystem Dependency Matrix

Table 2 provides a template dependency matrix summarising the principal relationships between ocean economic sectors and marine ecosystem services. The intensity ratings (high, medium, low) are indicative and should be adapted to national circumstances on the basis of available data and expert judgement. The matrix serves as a practical starting point for compilers undertaking sectoral dependency analysis; countries should refine the ratings using quantitative data from ecosystem service accounts compiled following TG-2.4 Ecosystem Goods and Services and condition accounts described in TG-2.1 Biophysical Indicators.

Table 2: Sector-Ecosystem Dependency Matrix

The matrix highlights that primary industries (fisheries, aquaculture) exhibit the strongest direct dependencies on provisioning and regulating services, while tourism depends predominantly on cultural services and coastal protection. Sectors such as shipping and offshore energy have comparatively low direct dependencies on ecosystem services, though they may impose significant impacts on marine ecosystems--an asymmetry between dependency and impact that is important for policy analysis. The ecosystem types column supports spatial linking of dependency analysis with ecosystem extent and condition accounts, enabling identification of which specific marine areas underpin each sector's economic activity.

Quantifying dependencies

The quantification of ecosystem service dependencies in monetary terms remains methodologically challenging. The SEEA EA presents approaches for valuing ecosystem services but notes that valuation chapters are "internationally recognized recommendations" rather than full statistical standards, reflecting ongoing methodological development^[19]. Key approaches include:

1. Resource rent attribution: For provisioning services such as fisheries, the resource rent--the economic surplus after all costs are deducted--represents the contribution of the natural resource to production^[20]. This value can be attributed to the ecosystem service and compared with total sectoral value added.

2. Damage avoided valuation: For regulating services such as coastal protection, the value can be estimated as the damages avoided compared with a counterfactual where the service is absent^[21]. For example, the value of mangrove coastal protection may be measured as the flood damages prevented.

3. Factor cost or replacement cost: Where ecosystem services substitute for produced inputs, their value may be estimated by the cost of replacement or the cost of the factor they substitute for^[22].

For comprehensive guidance on valuation methods for ocean ecosystem services and assets, see TG-1.9 Valuation.

3.5 Supply Chain Dependencies

The direct dependencies of ocean industries on ecosystem services represent only a portion of total economic dependency. Through supply chain linkages, industries that do not directly interact with marine ecosystems may nevertheless depend on ocean ecosystem services through their purchases of intermediate inputs.

Input-output analysis

Input-output analysis provides the framework for tracing dependencies through supply chains. Building on the supply and use tables described in TG-3.3 Economic Activity Relevant to the Ocean, symmetric input-output tables enable calculation of:

• Backward linkages: The extent to which an industry's production depends on inputs from other industries, including ocean industries
• Forward linkages: The extent to which an industry's outputs are used as inputs by other industries, including ocean industries
• Multiplier effects: The total economy-wide impact of changes in final demand for ocean products, including direct, indirect, and induced effects^[23]

The Statistical Framework for Measuring the Sustainability of Tourism (SF-MST) notes that indirect effects "can be estimated, often using input-output modelling techniques" and that the entries in accounts "are organized to connect to entries for these other industries"^[24]. The same principle applies to ocean economy accounts: their integration with national supply and use tables enables tracing of supply chain dependencies.

Environmentally extended input-output analysis

Environmentally extended input-output tables (EE-IOT) add environmental data to economic input-output tables, enabling analysis of embodied environmental flows through supply chains^[25]. For ocean dependencies, this approach allows quantification of:

• Embodied ecosystem service dependencies: The total ecosystem services required directly and indirectly to produce a unit of final demand for any product
• Footprint indicators: The total ecosystem service "footprint" of final consumption, capturing dependencies throughout domestic and international supply chains
• Sectoral dependency intensity: The ecosystem service intensity (per unit of output or value added) for each sector, incorporating supply chain dependencies

The SEEA CF notes that "environmentally extended input-output tables have been developed for individual countries, and are increasingly being developed to cover several countries; they are referred to as multiregional input-output tables, which also incorporate connections between countries through international trade in goods and services"^[26].

EE-IOT compilation is technically demanding and data-intensive, requiring integration of detailed environmental satellite data with balanced supply and use tables at a fine level of industry disaggregation. For most countries that are beginning ocean economy accounting, this represents an advanced application that is unlikely to be feasible in early implementation phases. Countries should consider the following progression: begin with the basic supply chain mapping described below, advance to partial quantification using available input-output data as the ocean economy thematic account matures, and pursue full EE-IOT compilation only when the requisite environmental and economic data infrastructure is in place. This phased approach aligns with the principle of building statistical capacity incrementally, as described in TG-0.1 General Introduction to Ocean Accounts.

Practical considerations

For countries beginning ocean economy accounting, practical approaches to supply chain dependency analysis include:

1. Qualitative mapping: Identify the principal industries that supply inputs to ocean industries, and the principal industries that purchase outputs from ocean industries, without full quantification
2. Partial quantification: Use available input-output data to estimate the share of selected industries' intermediate purchases that originate from ocean industries
3. Case-study analysis: Focus on specific supply chains of policy interest (e.g., the seafood supply chain from catch to consumption) rather than economy-wide analysis

3.6 Risk and Resilience Indicators

The practical importance of measuring economic dependencies lies in their implications for risk: economies that depend heavily on ocean ecosystems face economic risks when those ecosystems degrade. The TNFD framework provides the conceptual structure for translating dependencies into risk assessments^[27].

Nature-related risks

The TNFD categorizes nature-related risks into three types^[28]:

Physical risks result from the degradation of nature and consequential loss of ecosystem services. For ocean dependencies, physical risks include:

• Fishery collapse from overfishing or climate change impacts on fish stocks
• Loss of coastal protection from coral reef or mangrove degradation
• Decline in tourism attractiveness from water quality deterioration or marine debris
• Disruption of aquaculture from harmful algal blooms or disease outbreaks

Physical risks may be acute (short-term events such as oil spills or cyclones) or chronic (gradual changes such as ocean acidification or warming)^[29].

Transition risks result from misalignment between economic actors and actions aimed at protecting or restoring nature. For ocean dependencies, transition risks include:

• Policy changes that restrict access to fishing grounds or marine resources
• Market shifts in consumer preferences toward sustainable seafood
• Technology changes that alter the economics of ocean industries
• Reputational impacts from negative environmental performance
• Liability exposure from pollution or ecosystem damage^[30]

Systemic risks arise from the breakdown of entire systems rather than individual components. For ocean ecosystems, systemic risks include:

• Ecosystem tipping points where gradual degradation triggers rapid regime shifts
• Cascading failures where the loss of one ecosystem service undermines others
• Financial stability risks when widespread physical and transition risks materialise simultaneously^[31]

The TNFD notes that "systemic risks are of significant interest to policy makers and market regulators because of their potential to cause sudden disruption to societies, economies and the functioning of financial markets"^[32].

Developing resilience indicators

Resilience indicators assess the capacity of economic systems to absorb shocks and adapt to changes in ecosystem service provision. Building on ocean accounts, relevant indicators include:

Ecosystem condition indicators from condition accounts provide early warning of capacity to maintain service provision. These indicators are addressed in detail in TG-2.1 Biophysical Indicators and include:

• Coral reef condition indices indicating coastal protection and tourism support capacity
• Fish stock status relative to sustainable yield indicating provisioning service sustainability
• Water quality parameters indicating capacity to support multiple uses

Economic diversity indicators assess the extent to which economies depend on single ecosystem services or sectors:

• Sectoral concentration of ocean economy GVA
• Geographic concentration of ocean-dependent activity
• Diversity of export products from ocean industries

Adaptive capacity indicators assess the ability to respond to ecosystem changes:

• Investment in alternative livelihoods for ocean-dependent communities
• Technology and infrastructure for monitoring and response
• Governance capacity for adaptive management

Resilience indicator development for ocean accounts is an emerging area where specific indicator recommendations are expected to evolve as implementation experience accumulates. Countries currently piloting ocean accounts--including Thailand, Vietnam, and Fiji--are generating practical experience with resilience measurement that will inform future revisions of this guidance. In the interim, compilers are encouraged to draw on the condition indicator framework in TG-2.1 Biophysical Indicators as the primary basis for assessing ecosystem resilience, supplemented by economic diversity and adaptive capacity indicators where data permit.

Integration with financial disclosure

The increasing adoption of nature-related financial disclosure frameworks creates demand for dependency and risk indicators that can inform corporate and financial sector reporting. The 2025 SNA notes that "a related area of work is the assessment of enterprises' exposure to environmental risks, including climate risks and risks emerging from declines in nature and biodiversity"^[33].

Ocean accounts can support TNFD-aligned reporting by providing:

• Baseline data on dependencies of industries and sectors on ocean ecosystem services
• Condition metrics against which physical risks can be assessed
• Geographic data linking economic activities to specific marine and coastal ecosystems
• Time series enabling tracking of changes in dependencies and risks

For detailed guidance on the integration of ocean accounts with development finance and financial disclosure frameworks, see TG-1.7 OA and Multilateral Development Finance.

4. Acknowledgements

This Circular has been prepared as a draft for review and comment. Final approval will follow the GOAP Technical Experts Group procedures.

Authors: UNSW, CBE, IDEEA Group, Carl Obst, Crystal Bradley

Reviewers: Teerapong Praphotjanaporn, Dan Whitaker

5. References