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Coalition Backs Natural Capital Framework

NCCThe Natural Capital Coalition — a multi-stakeholder coalition whose business signatories include Coca Cola, Kingfisher and Dow Chemical — is seeking to create a framework to standardize how the economic value of natural resources is accounted for and valued.

The Natural Capital Protocol is supported by, among others, the United Nations Environment Programme, the World Bank’s International Finance Corporation, and the accountancy profession represented by the Chartered Institute of Management Accountants, EY, the Institute of Chartered Accountants in England and Wales, the International Federation of Accountants and Accounting for Sustainability.

During 2014 and throughout 2015, the coalition will develop and pilot test the Natural Capital Protocol. Other business partners include FMO, IDB, Patagonia, Perrigot and 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: 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 2011 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 company’s operations and supply chain at €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 replenishing all water used in its finished beverages as it, in common with many other companies,  sees water scarcity as a key business risk. 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. 

Dow Chemical Company is analyzing its impacts and dependencies on ecosystems at its joint venture production site in Santa Vitória, Brazil. The company is using the the pilot project to test how it can weigh how best to value economic services it receives from nature, the report says.

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3 thoughts on “Coalition Backs Natural Capital Framework

  1. Thank you so much for valuing the invaluable impossible to count in human cash now and generations from now….to protect nature’s ability to produce abundant riches to count….and critical flows impossible to count in cash that keep human cities alive day to day and minute to minute….to stop causing hell on earth…and to grow heaven on earth instead. Kudos!

  2. Most economists limit their counts to human cash systems now….and fail to include the positive productive potentials hidden in every living cell, seed, seedling, soil that wants to reach up toward light of our sun enough to 1) produce abundant riches for us to consume and count in human cash + 2) to produce critical flows for life impossible to count in cash…..human cash ironically valuing/counting the most critical flows for life the least… and cash counting the least critical stones and structures the most, the most deadly the most…human cash crushing life on earth, ironically……

    Humans have used human cash systems of mechanical rates of private/(public) selves now to build great cities and great civilizations fore thousands of years….but human cities of cashflow floods also crush the ability of nature to grow upwards toward light enough to produce enough critical flows (of light O2 H2O topsoil green) enough to keep human cities alive day to day and minute to minute….

    But some just don’t get it. Many don’t get it because nature’s amazing productivity of riches and critical flows hide far beyond the obvious/linear/thick/dense/impermeable/artificial/urban walls of human cities that blind us….and block our access to the critical flows produced by nature that any need to produce life or laughter.

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