Integrated Decision-making Framework
The Integrated Decision-Making Framework provides a practical approach for an integrated capitals assessment with a clear governance structure and detailed technical guidance for practitioners.
It is a testament to the power of systems thinking, the importance of considering the interconnectedness of all aspects of our world, and the value of what truly matters. Decision-makers in all organizations need complete and consistent information to make decisions that build competitiveness and resilience. Often, direct financial impacts are prioritized in decision-making, while other impacts, such as those related to nature, people and society are not considered to the same extent, although equally real and tangible. Therefore, there is a business case for integrated decision-making from both a financial and a long term value perspective.
The need for a more holistic approach, one that considers the interconnectedness of our planet’s natural, social, human, and produced capital, has never been more urgent.
Only through the rigor of a structured process can we increase transparency and consistency, and embed values into decision-making.
A stepwise integrated capitals assessment is needed, secured by a robust governance structure to test confidence in and the suitability of the valuation of impacts and dependencies used. For an integrated capital assessment to be truly valuable, it must be paired with robust governance. This ensures the valuation is transparent and fit for the decision, giving decision-makers confidence in the assessment’s outcome. In 2025, the Capitals Coalition’s global community has worked to advance a significant systems-level innovation to facilitate and embed the Principles of the Integrated Capitals Assessment into decision-making in a practical, accessible way.
The Framework
Capitals Protocol & Governance for Valuation
How can information on impacts and dependencies across all capitals be prepared in a consistent way?
The Capitals Protocol provides 7 steps for integrated decision-making that form the backbone of an integrated capitals assessment and are organized in 3 stages. Although the 7 steps are presented consecutively it is important to recognize that they are inherently iterative. While a user may start at Step A, new insights from each step may necessitate revisiting previous steps.
1. Assemble
What needs to be considered when making an integrated capitals decision.
2. Assess
What to consider when assessing impacts and dependencies across all forms of capital.
3. Act
How results can be applied towards the goal of integrating the capitals into existing processes.
What information is required and how can decision-makers judge if it is fit-for-purpose?
The Governance for Valuation increases transparency and consistency in valuation, building on 4 blocks to drive confidence in decision-making. Together, these four building blocks are critical to summarizing how capitals valuation informs the decision at hand. Value Notes are the culmination of empowering the decision-maker, as they are comparable to the notes in financial statements, which present pertinent information on how figures are calculated, interpreted, and any caveats to consider.
1. Transparency Requirements
Before the suitability of capitals information for a particular decision can be ascertained, it is necessary to understand what is being valued and on what basis.
2. Confidence Criteria
Structured as a series of decision trees, the Confidence Criteria are the heart of the Governance for Valuation. They allow decision-makers to assess whether capitals information they receive is suitable for their purpose.
3. Value Notes
To conclude, Governance Valuation proposes analogous notes to those on Financial Statements.
4. Attribution scopes
Also included to enable organizations and businesses to identify which specific activities or processes drive changes in capitals, providing the foundation for informed, holistic decision-making.
Explore more