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Mar 2014

Accounting for natural capital: the elephant in the boardroom

Natural capital depletion will become one of the most prominent business concerns in the 21st Century. And yet it is one issue that remains an ‘elephant in the boardroom’ - absent from most corporate accounts and business models and largely ignored by investors as boardrooms continue to focus on short-term pressures.

This report from CIMA, EY, the International Federation of Accountants (IFAC) and the Natural Capital Coalition, calls for finance professionals to take action. Organisations that respond swiftly, embracing opportunities to innovate and managing risks, will thrive. Those that do nothing will suffer from rising input costs, risks to their supply chain, and reputational damage.

The ultimate bank on which we all depend – the bank of natural capital – is in the red; the debt is getting ever bigger and that is reducing Nature’s resilience and considerably impeding her ability to re-stock. It leaves us dangerously exposed.

HRH The Prince of Wales

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Accounting for natural capital: the elephant in the boardroom