Operationalising natural capital: Managing opportunities and risks from natural resources
This report from the Cambridge Institute for Sustainability Leadership (CISL) explores how businesses within CISL’s Natural Capital Leaders Platform are looking for ways to incorporate natural resource concerns in their decision-making. It paves the way for companies to explore the commercial logic behind their decisions on the natural environment.
It is intended to provide an overview for sustainability leaders and
managers of the state of play of where natural capital is already being
included in business decision-making and where there are still barriers
to its incorporation.
The Platform members worked with CISL to establish the commercial
decisions that are already being impacted by natural resource challenges
in their organisations. Rather than taking a narrow perspective to
mitigate operational or reputational risk the businesses agreed that
they are pursuing longer-term company strategies by recognising natural
capital as a financial opportunity; over 50 per cent of the businesses
are realising this through their strategic investments. However, it is
clear that the commercial impacts resulting from investments in the
natural environment are not being articulated through quantifiable
metrics. This makes it difficult to communicate successes and future
risks across different business departments. Overcoming this challenge
is particularly pertinent as corporate functions and senior leadership
teams are becoming more engaged around discussions on natural resources.
The work has identified the opportunity to develop a set of metrics
that would link commercial impacts to impacts on the natural
environment; CISL is leading this exploration. Such metrics can help
further internal buy-in and enable the development of a strong business
case for future investments in the natural environment.
to download the report.
Tags: Ecosystem valuation
Other articles you might be interested in:
It’s Time To Start Accounting For Nature
WWF recently released Living Planet Report 2016, the latest biennial accounting of the state of the planet. The numbers are sobering. Each year, humans use the biocapacity of 1.6 Earths, consuming resources faster than the planet can replenish them. That’s the ecological equivalent of surviving on credit.
Cancun Business and Biodiversity Pledge
One important outcome of the Business and Biodiversity forum will be the Business and Biodiversity Pledge, which was prepared based on feedback from partner organizations and businesses.
Green instead of Gray – Industrial Parks in Transition
Collaborative Project within the Research Program "Sustainable Transformation of Urban Spaces". New poject in cooperation with WILA Bonn started recently (July 2016). Supporting companies for greener industrial parks.