What is natural capital?

What is natural capital?

Natural capital is the stock of renewable and non- renewable natural resources (e.g., plants, animals, air, water, soils, minerals) that combine to yield a flow of benefits to people. It is  nature in all meanings and all ecosystems services associated that make life possible providing food, materials, energy, and eventually an unending list of products and services that make life possible as we understand it.

Why businesses must take natural capital into account?

Companies, just like people, interact with natural capital. When considering natural capital in their strategies, this will allow business reduce mismanagement risks, as well as to benefit from opportunities associated.

What are the opportunities?

Long-term availability of resources, differentiation from competition, costs reduction, meeting investors requeriments.

What are the risks?

Costs increase due to lack of resources, changes in customers preferences for «greener» products, reputational risks.

 What methodology can I apply to take it into consideration?

There are multiple methodologies. Each one is adapted to objectives pursued by the company. The Natural Capital Coalition has developed a general Protocol that enables businesses natural capital integration strategy depending on the objectives being pursued. To achieve this, the Coalition has established specific lines of work.