Building a resilient economy that values what matters
Approach
Our current economic system runs on an incomplete picture.
It measures financial profit while the natural, social, and human capital that makes business possible remains invisible. Making the invisible value visible, integrating the true value of nature, people, and society into every decision, is key to human wellbeing and economic success.
Recognizing and strategically managing interactions with all capitals is a core business imperative for resilience, long-term competitiveness, innovation, and prosperity.
What is capital?
Capital has traditionally been thought of only as money, but capital describes any resource or asset that stores or provides value to people.
Natural capital, social capital and human capital work in much the same way as traditional capital – if we invest in them they create value, and if we degrade them we limit their value.
From impact to dependency
A capitals approach moves beyond considering only how we impact on the capitals to also highlighting how we depend on them.
This shift in mindset contextualizes our relationships with the capitals and helps to illustrate a clear business case for their protection and investment in their health and resilience.
From measurement to valuation
Understanding the value provided by the capitals further highlights the significance of our dependencies and enables us to include their value when we make decisions.
The value illuminated by a capitals approach can be economic, social, environmental, cultural or spiritual and can be expressed in qualitative or quantitative terms.
From silos to systems
A holistic systems approach sits at the heart of a capitals approach. Nature, people, society and the economy must be recognized as parts within a deeply interconnected global system and addressed together to deliver value across the capitals.
About
System change is complex, and no single organization can drive it alone. It requires collaboration across the ecosystem, a coalition of the willing—and that is where we come in.
As a global collaboration with a shared vision for a resilient economy that values what matters, we work hand-in-hand with the people who hold the levers of change: accountants, financial institutions, businesses, and regulators, to integrate the value of all capitals into existing systems and processes.
Because real transformation happens when the right stakeholders align on a common approach.
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Organizations at the core
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Global community
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Capitals hubs
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International protocolsInsights
Projects
Resources
The Coalition has developed three internationally recognized frameworks that provide organizations with tools to identify, measure and value their impacts and dependencies on natural capital, social capital and human capital to inform their decision-making.
As well as developing sector-specific and supplementary guidance to the Protocols, the Capitals Coalition convenes a diverse global community of leaders and spearheads global programs to ensure that the value of nature, people and society sits alongside financial value in the minds of decision-makers.
ABN AMRO – Valuing impact on biodiversity
Natural Capital
Home
Netherlands
Details
During stakeholder dialogues in 2017 and 2020, ABN Amro was tasked to explore a more quantitative assessment of its biodiversity impact. This report was developed alongside the bank’s participation in the Partnership for Biodiversity Accounting Financials (PBAF), and the Finance for Biodiversity Pledge.“Biodiversity underpins human welfare and is one of the most important sustainability topics the world must improve on according to the World Economic Forum which has made it one of its key topics in the coming years.” CEO – Robert Swaak.
This study, carried out by ABN AMRO Bank looks closely into what biodiversity means for their business, how to increase public awareness and what impact biodiversity has on the business activities. The report highlights the business’ key drivers behind their impact on biodiversity, which is predominantly driven by land use and climate change.
ABN Amro’s biodiversity impact is assessed using the same drivers as their natural capital assessment; climate change, air pollution, water pollution, and land use. This impact is then translated into the equivalent of a loss of one hectare of pristine biodiversity.
Outcome
ABN Amro calculated the differences in biodiversity impact between sectors and regions, split by impact driver. Furthermore, the report helped pinpoint if impacts were direct, or indirect via clients and suppliers. ABN Amro, with the Impact Institute, carried out monetary valuation of the impacts on biodiversity, related to value lost through ecosystem service loss. This allowed the bank to compare relative impact across sectors and regions. Among the sectors in which ABN Amro is active, the most impactful on biodiversity were cattle farming, business services, and shipping. The impact varied across direct impact from clients (e.g. environmental pollution from cattle farming), and indirect impact from clients and suppliers (e.g. energy use of data centers). The report highlights some small changes that ABN Amro has implemented such as their code of conduct with external suppliers and forest restoration. Externally, ABN Amro has financed Jumbo Supermarket’s new sustainable supermarket, focusing on building materials that reduce energy use, and reducing food waste. ABN Amro will use these results to explore more effective ways of reducing their negative biodiversity impacts and increasing their positive impacts. Monetary valuation of impact plays an important role for the bank in this process.Support from
BNP Paribas – Connecting finance and natural capital
Natural Capital
Home
Europe
Details
BNP Paribas wanted first to map its natural capital impact drivers and/or dependencies to better manage the associated risks and opportunities, with the ultimate goal of limiting its natural capital footprint. But the company knows that it is too early to measure the impact drivers and/or dependencies across all portfolios. The aim was therefore to analyse the water management of all the European companies in the materials sector that are constituents of the MSCI Europe and the Barclays EUR Aggregate indices and integrate this assessment into BNP Paribas scoresOutcome
Three European chemical companies out of twenty were given a bonus to reflect their sustainable water management, four were given a malus due to inadequate risk management and transparency.
Cemento Argos – Understanding societal value creation
Natural CapitalSocial and Human Capital
Home
International
Details
Argos used KMPG’s True Value methodology to assess the main impacts of the company’s operations. The company had three main objectives for the assessment outcomes: 1) To make better informed and more responsible decisions 2) to enable more accurate risk management 3) to promote accountability within and outside industry.Outcome
Argos was able to quantify its value to society. The assessment will also be used as a tool to communicate with stakeholders and strengthen approaches to measurement and valuation in the future. The findings indicate that in 2017, the net value added to society by Argos was USD 804.3 million, 4.73 times its retained benefit.
Bankinter – Connecting finance and natural capital
Natural Capital
Home
Spain
Details
Bankinter wanted to understand which investment sectors have the greatest impacts and dependencies on natural capital and determine what level of investment would be needed to reduce or manage them. Bankinter implemented the Natural Capital Protocol Financial Sector Supplement guide.Outcome
It was identified that many departments were already working on common goals without a centralized process, leading to misunderstandings. This assessment indicates that wholesale trade, transport, other construction activities and real estate have the highest impact and dependencies on natural capital, which are sectors that Bankinter is investing in most. It has been highlighted that more information is needed for an in-depth finance project assessment. Bankinter will use natural capital assessments again in the future, and continue to focus on quantitative methodologies .
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