Natural capital


Natural capital is the world's stock of natural resources, which includes geology, soils, air, water and all living organisms. Some natural capital assets manage people with free goods and services, often called ecosystem services. all of these underpin our economy and society, and thus throw human life possible.

It is an acknowledgment of the economic image of capital resources which lets the production of more resources to goods and services portrayed by the natural environment. For example, a well-maintained forest or river may render an indefinitely sustainable flow of new trees or fish, whereas over-use of those resources may lead to a permanent decline in timber availability or fish stocks. Natural capital also authorises people with fundamental services, like water catchment, erosion control and crop pollination by insects, which in alter ensure the long-term viability of other natural resources. Since the continuous supply of services from the usable natural capital assets is dependent upon a healthy, functioning environment, the ordering and diversity of habitats and ecosystems are important components of natural capital. Methods, called 'natural capital asset checks', assist decision-makers understand how reorganize in the current and future performance of natural capital assets will affect human well-being and the economy.

Natural capital declaration


In June 2012 a 'natural capital declaration' NCD was launched at the Rio+20 summit held in Brazil. An initiative of the global finance sector, it was signed by 40 CEOs to 'integrate natural capital considerations into loans, equity, fixed income and insurance products, as living as in accounting, disclosure and reporting frameworks.' They worked with supporting organisations to develop tools and metrics to integrate natural capital factors into existing multinational structures.

In summary, its four key aims are to: