Accounting for natural capital
The elephant in the boardroom
As we become increasingly aware of our reliance on natural resources, which the demands of a growing and more prosperous global population have left dangerously thin, natural capital depletion will become one of the 21st century’s most prominent business concerns. Businesses face a stark choice: adapt or fail.
And yet the issue remains an elephant in the boardroom, largely ignored as companies focus on short-term business objectives and priorities.
This report from the Chartered Institute of Management Accountants, in collaboration with EY, calls for finance professionals and those in leadership positions to act now to integrate natural capital considerations into decision making, resource allocation and reporting, and adapt to growing competition for ever more scarce natural resources.
If you would like to discuss how these issues affect your organisational performance and sustainability, please contact Steven Lang.