Framework Documentation

Methodology

The NOAA-TDC Dual-Flow ESG Asset Attribution Framework adapted for Australian oyster aquaculture in New South Wales.

Four-Tier Attribution Model

The model operates across four tiers, each adding precision and context to the ecosystem service valuation. Tiers 3 and 4 are always active, while Tier 1 or Tier 2 is selected based on data availability.

TierNameWhen Active
1Latent PotentialDefault: area-based rates + regional environmental data
2Realised ContributionWhen harvest tonnage is available (Oceanfarmr data)
3Spatial ApportionmentAlways: NSW DPI estuary classification, seagrass, marine parks
4Data Quality AdjustmentAlways: DAF = ((REDQS/5)² + REDQS/5) / 2

Data Adjustment Factor (DAF)

The DAF discounts all ESV estimates based on the quality and proximity of supporting environmental data. It uses the Regional Environmental Data Quality Score (REDQS), scored 1-5:

DAF = ((REDQS / 5)² + REDQS / 5) / 2

REDQSDAFScenario
10.100No local data; estuary-level fallback
20.280BOM station >10 km; single-year data
30.480BOM/DPI station within 10 km; multi-year average
40.720Station within 5 km; verified farm data
51.000On-farm sensors + verified Oceanfarmr records

Service Vectors

1. Nitrogen RemovalHigh Confidence

Oysters remove nitrogen from the water column through bioassimilation into tissue and shell. NSW-specific rates from NSW Farmers / Blueshift (2025):

Tier 1: N_removed = Area_ha × 13.8 kg/ha/yr × TN_adj × AF

Tier 2: N_removed = HarvestT × SpeciesRate × AF

Value: N_removed × A$100/kg × DAF

Sydney Rock Oyster

5.58 kg TN/t harvested

Pacific Oyster

4.46 kg TN/t harvested

2. Phosphorus RemovalMedium Confidence

Tier 2 only — requires harvest tonnage data. Phosphorus is removed through tissue bioassimilation.

P_removed = HarvestT × P_SpeciesRate × AF → Value = P_removed × A$100/kg × DAF

Sydney Rock Oyster

0.69 kg TP/t harvested

Pacific Oyster

0.55 kg TP/t harvested

3. Carbon Sequestration (Shell)Medium — Contested

Shell carbon is calculated using the IPCC (2006) lime proxy method. Shell composition is 92% CaCO₃ (de Roover 2024). Note: this method is scientifically contested — Pernet et al. (2024) argues harvesting CaCO₃ does not constitute a CO₂ sink.

ShellWeight = HarvestT × 1000 × ShellRatio

CO₂_seq = ShellWeight × 0.92 × 0.12 × 3.67 → ≈ 0.4 kg CO₂/kg shell

Value = CO₂_seq (tonnes) × A$34/t × DAF

SRO Shell Ratio

75.8%

PAC Shell Ratio

83.8%

4 & 5. Habitat ProvisionMedium Confidence

Benefit transfer from Grabowski et al. (2012) and McLeod et al., adjusted for AUD. Split into commercial fisheries enhancement and recreational fishing value. Multiplied by seagrass density and marine park proximity factors.

Habitat_comm = Area_ha × A$1,200/ha × Seagrass_mult × MarinePark_mult × AF × DAF

Habitat_rec = Area_ha × A$600/ha × Seagrass_mult × MarinePark_mult × AF × DAF

Co-benefit: Water FiltrationNot in Total ESV

Each oyster filters approximately 189 litres per day (~50 US gallons). This is reported as a co-benefit but excluded from the total ESV to avoid double-counting with nitrogen removal.

Data Sources

NSW DPI Fisheries Spatial Data Portal

OISAS area polygons, estuary classification

NSW Farmers / Blueshift (2025)

N/P removal rates, shell carbon, species-specific data

FarmDecisionTECH

IoT water temperature & salinity sensors across NSW estuaries (API v1.0)

Bureau of Meteorology

Water quality monitoring data (TN, TP, DO)

Eco-Markets Australia

Reef Credit Scheme pricing (~A$100/kg nutrient)

Clean Energy Regulator

ACCU pricing (~A$34/t CO₂e)

IPCC (2006)

Lime proxy emission factor for shell carbon

de Roover (2024)

Shell elemental analysis (92% CaCO₃)

Grabowski et al. (2012)

Habitat provision values for oyster reefs

FSANZ

Tissue composition data for SRO and PAC

ESG Standards Alignment

StandardApplication
TNFD LEAPLocate (POAA polygon), Evaluate (DPI/BOM/FDT data), Assess (DAF confidence), Prepare (ESV report)
GRI 304Biodiversity: proximity to marine parks, seagrass meadows, essential fish habitat
SEEA EAEcosystem accounts: N/P removal and carbon as regulating service flows
EPBC ActMatters of National Environmental Significance: marine species, wetlands
OISAS 2021NSW Oyster Industry Sustainable Aquaculture Strategy: POAA area classification

Confidence Levels

High

Peer-reviewed rate, active area, FDT/BOM station within 5 km, REDQS ≥ 4

Medium

Benefit-transfer value, or estuary-level WQ data, REDQS 2-3

Low

Inactive/prohibited area, no local data, REDQS 1

Overall confidence = lowest confidence across all active service vectors.