Coalition Backs Natural Capital Framework
TheÂ Natural Capital Coalition â€” a multi-stakeholder coalition whose business signatories includeÂ Coca Cola, Kingfisher andÂ Dow Chemical â€” isÂ seeking to create a framework to standardize how the economic value of natural resourcesÂ isÂ accounted for and valued.
The Natural CapitalÂ Protocol isÂ supported by, among others,Â the United Nations Environment Programme, the World Bankâ€™sÂ International Finance Corporation, and the accountancyÂ profession represented by theÂ Chartered Institute of Management Accountants, EY, theÂ Institute of Chartered Accountants in England and Wales, theÂ International Federation of Accountants and AccountingÂ for Sustainability.
During 2014 and throughout 2015, the coalition willÂ develop and pilot test the Natural Capital Protocol. Other business partners includeÂ FMO, IDB, Patagonia, Perrigot andÂ National Australia Bank.
According to report released by Chartered Institute of Management Accountants we are using 50 percent more natural capital each year than the earth can replenish.
Accounting for natural capital:Â The elephant in the boardroom also estimates that by 2030, we will need the natural capital equivalent to two planets to sustain ourselves. Yet, most businesses, which are significant users of this natural capital, do not account for the resource depletion in their financial growth plans.
There are, however, some notable exceptions mentioned in the report:
In April 2011Â sportswear company Puma announced it would to publish the world’s first environmental profit and loss statement for all its operations. The initial results, which were released in May 2011, valued the greenhouse gas and water consumption impacts of the companyâ€™s operations and supply chain at â‚¬94.4 million ($133.5 million). The company continues to quantify its environmental impacts in this way, the report says.
Coca-Cola has a 2020 target of replenishingÂ all water used in its finished beverages as it, in common with manyÂ other companies, Â sees water scarcity as a key business risk.Â The company missed a 2010 goal to return to the environment all water used in its manufacturing process in, but remained track to improve its water use ratio 20 percent by 2012, according to figures released in 2011.Â
Dow Chemical Company is analyzing its impacts and dependencies on ecosystems at its joint venture production site in Santa VitÃ³ria, Brazil. The company is using the the pilot projectÂ to test how it can weigh how best to value economic services it receives from nature, the report says.
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