The Case for the Integration of Natural Capital
-
Upload
jeremy-williams -
Category
Education
-
view
686 -
download
1
description
Transcript of The Case for the Integration of Natural Capital
![Page 1: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/1.jpg)
The Sofitel, Mumbai, 14 November 2014
Prof Jeremy B WilliamsDirector, Asia Pacific Centre
for Sustainable Enterprise
@TheGreenMBA
The Case for Integration of Natural Capital … or How Accountants Can
Save the Planet
Symposium on Natural Capital:The business case and relevance to financial institutions
![Page 2: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/2.jpg)
@TheGreenMBA
slideshare.net/jembwilliams
#NatCap
![Page 3: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/3.jpg)
Some context…
3 recent reports that focus the mind
![Page 4: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/4.jpg)
Politics or ideology must not get in the way of
sound planning
![Page 5: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/5.jpg)
![Page 6: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/6.jpg)
Risk data for 198 countries across 26 separate issues, including climate change vulnerability and food security, as well as emissions, ecosystem services, natural disasters and regulation
Echoes the findings of recent reports released by the Pentagon
The growth economies of Cambodia (12), India (13), Myanmar (19), Pakistan (24) and Mozambique (27) also feature in the ‘extreme risk’ category.
![Page 7: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/7.jpg)
![Page 8: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/8.jpg)
If these are the symptoms, what is
the cause?
![Page 9: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/9.jpg)
The Earth
… is full
![Page 10: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/10.jpg)
![Page 11: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/11.jpg)
![Page 12: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/12.jpg)
![Page 13: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/13.jpg)
![Page 14: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/14.jpg)
![Page 15: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/15.jpg)
![Page 16: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/16.jpg)
![Page 17: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/17.jpg)
![Page 18: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/18.jpg)
![Page 19: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/19.jpg)
![Page 20: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/20.jpg)
![Page 21: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/21.jpg)
![Page 22: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/22.jpg)
![Page 23: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/23.jpg)
![Page 24: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/24.jpg)
![Page 25: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/25.jpg)
![Page 26: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/26.jpg)
What is well-being?
How do we measure it?
![Page 27: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/27.jpg)
Good or bad for GDP?
![Page 28: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/28.jpg)
The welfare of a nation can scarcely be inferred from a measurement of national income as defined by the GDP... goals for ‘more’ growth should specify of what
and for what.’
Simon Kuznets (1962) … creator of GDP concept
![Page 29: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/29.jpg)
![Page 30: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/30.jpg)
Kubiszewski et al (2013: 63)
![Page 31: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/31.jpg)
‘Capitalism, as practiced, is a financially profitable, non-sustainable aberration in human development. What might be called ‘industrial capitalism’ does not fully conform to its own accounting principles. It liquidates its capital and calls it income. It neglects to assign any value to the largest stocks of capital it employs – the natural resources and living systems, as well as the social and cultural systems that are the basis of human capital.’
Hawken, Lovins and Lovins (1999), Natural Capitalism, p. 5.
![Page 32: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/32.jpg)
(2005)
![Page 33: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/33.jpg)
The six capitals of Integrated
Reporting<IR>
Where is the
company’s value?
![Page 34: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/34.jpg)
![Page 35: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/35.jpg)
Introducing TEEB
G8 Environment Ministers Meeting Potsdam, March 2007
![Page 36: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/36.jpg)
Pavan Sukhdev
Lead the TEEB study and CEO-Founder of
![Page 37: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/37.jpg)
Ending the economic invisibility of nature
![Page 38: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/38.jpg)
Can accountants save the planet?
![Page 39: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/39.jpg)
(2012)
![Page 40: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/40.jpg)
< 1/3 of responding ACCA members were familiar with the term ‘ecosystem services’
70% of ACCA members surveyed said they needed training on its potential impact on corporate value and performance
![Page 41: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/41.jpg)
![Page 42: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/42.jpg)
Pollination services from bees
in Britain would cost the UK £1.8
billion p/a
![Page 43: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/43.jpg)
‘Eco-system engineers’
![Page 44: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/44.jpg)
![Page 45: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/45.jpg)
![Page 46: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/46.jpg)
![Page 47: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/47.jpg)
![Page 48: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/48.jpg)
(Released 14 May 2014) Executive Summary:
‘Natural capital will become as prominent a business concern in the 21st Century as the provision of adequate financial capital was in the 20th Century ... We are already ‘drawing down’ on 50% more natural capital a year than the earth can replenish – and the rate of depletion is accelerating. All too soon, businesses will face a stark choice: adapt or fail.’
![Page 49: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/49.jpg)
HRH Prince Charles
![Page 50: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/50.jpg)
![Page 51: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/51.jpg)
Richard Spencer Head of Sustainability
ICAEW
“Natural capital drives a completely different business model that redefines business success”
Valuing Our Life Support Systems Summit - Natural Capital Initiative6-7 November 2014 British Library, London
![Page 52: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/52.jpg)
Links between natural capital and corporate value
![Page 53: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/53.jpg)
![Page 54: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/54.jpg)
![Page 55: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/55.jpg)
Which of nature’s assets should your company be investing in?
![Page 56: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/56.jpg)
September 2013
Follow up on Is Natural Capital a Material Issue?
• narrative reporting on strategy and management providing qualitative understanding of an organisation’s relationship to natural capital and the processes used to manage the various risks and opportunities; and
• performance reporting providing stakeholders with quantitative information on KPIs that can be used to track performance over time
![Page 57: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/57.jpg)
CIMA (2014: 8)
![Page 58: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/58.jpg)
Puma the world’s first major corporation to publish details of the cost of its impact on the environment
Motivation: to build a more “resilient and sustainable business model”
![Page 59: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/59.jpg)
![Page 60: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/60.jpg)
The USD1 trillion infrastructure gap
• Current spending on basic infrastructure is $2.7 trillion – needs to be $3.7 trillion
• $50 trillion in locked in pension funds, making low risk investments
• Companies need to demonstrate how they will create and preserve value over time
![Page 61: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/61.jpg)
![Page 62: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/62.jpg)
November 2013
![Page 63: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/63.jpg)
What does investment in natural capital look like?
![Page 64: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/64.jpg)
Year: 1986Population: 2.7 millionGreen Cover: 35.7%
Centre for Remote Imaging, Sensing and Processing (CRISP)
![Page 65: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/65.jpg)
Year: 2007Population: 4.8 millionGreen Cover: 46.5%
Centre for Remote Imaging, Sensing and Processing (CRISP)
![Page 66: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/66.jpg)
Cheonggyecheon, Seoul (BEFORE)
![Page 67: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/67.jpg)
CheonggyecheonCheonggyecheon, Seoul (AFTER)
![Page 68: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/68.jpg)
The goal:
Cityin a
Forest
World’s Most Liveable City for four years
running
![Page 69: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/69.jpg)
Urban Landscapes Climate Adaptation$50 million 2010-2015
Cool the city by
4°C
Double canopy cover
Increase permeability
Increase green space
Increase stormwater harvesting
Human Health Public Realm & Environment
![Page 70: The Case for the Integration of Natural Capital](https://reader035.fdocuments.net/reader035/viewer/2022062708/55897aabd8b42a76448b4605/html5/thumbnails/70.jpg)
profjeremybwilliams
Discussion?