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Natural Capital 101

Unless you’ve been living under a rock, chances are you’ve heard the term “Natural Capital” bandied about.

Natural Capital is a term that puts an economic value on both living and non-living things in any given environment, at a particular point in time. The beach? Natural Capital. Air? Natural Capital. Soil? Natural Capital. That rock you’ve been living under? You guessed it, natural capital.

Very simplistically (and rather obviously) Natural Capital underpins all forms of life.  These natural assets provide us with vital services essential for our health, livelihoods, and future.

Person walking in nature

So why do we need to give the environment an economic value?

I’m glad you asked. It’s because we live in a capitalist economy – and every industry is dependent on Natural Capital to a greater or lesser degree. To a greater or lesser degree, industries have been using or abusing Natural Capital for economic gain, with the underlying assumption that nature has no value and can therefore be disregarded.

By including Natural Capital as an asset – we are recognising that businesses, like individuals, are also dependent on nature. Reporting on Natural Capital is the first step in making positive changes that mean businesses can no longer make a profit at the expense of over-using their natural capital, and that the “world stock” of natural capital needs to not only be maintained, but be improved.

Putting an economic value on our natural assets allows Natural Capital to be put on the books with our other assets and liabilities. If we value Natural Capital as a society, then it needs an economic value.

Seedlings growing off coins

What is the role of data in Natural Capital Reporting?

With the increasing need to report on Natural Capital, the way that we measure, report and validate Natural Capital is essential. At Indicium Dynamics, we are developing our Natural Capital Strategy, to see where integrated data solutions have a role to play in providing businesses with solutions to measure, report and validate their Natural Capital assets. We are supporting Natural Capital reporting in two key ways:

  1. by deploying technologies that collect high-quality and timely data about Natural Capital assets, and

  2. utilising the capabilities of the INDICIUM Stack to integrate different data sources, store this data, and provide visualisation and analytics of the data - all of which improve the reporting and resource optimisation capabilities of organisations.

Working with businesses to manage and enhance Natural Capital feels like a natural fit for us at Indicium Dynamics. We're all about delivering solutions that not only boost organisational efficiencies and resilience but also create positive impacts on society and the environment. Our goal is to provide businesses with data they can trust, helping them unlock the potential of their data for a better tomorrow. Natural Capital management, which includes resources like water, soil, and biodiversity, is key for sustainable growth and protecting our planet. We're passionate about delivering reliable data that businesses can use to make smart decisions and contribute to a more sustainable future.

If you are interested in the sustainable management of Natural Capital, then make sure to subscribe below to stay up to date with our news and future blog posts on this topic.

If you are searching for better ways to monitor your Natural Capital assets, we would love to hear from you. Contact us today to be connected with one of our consultants.

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