Natural capital

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Natural Capital can be defined as the world’s stocks of natural assets which include geology, soil, air, water and all living things.

Examples include global forests and their role in controlling greenhouse gases, insects as pollinators, water resources and the ecosystems of the planet.

Just as companies need financial capital to support their business so too does the world need natural capital to support human life.

Poor management can result in depletion of financial capital and likewise natural capital needs to be managed and valued.

Putting an economic value on natural capital and accounting for its use or renewal are behind the concepts of sustainability accounting or integrated accounting.

Natural capital is also known as natural resources.

See also