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Natural Capital At Risk
Transcript of Natural Capital At Risk
Environmental costs: loss of value to people from environmental goods and services
Social costs: cost to society as a whole (i.e. economic activity)
Significance of Natural Capital in Business
Businesses aren't generating sufficient profit to cover natural resources and pollution costs
Increasing risk of doing business
Loss of sustainable competitive advantage
The global 100 environmental impacts by sector and region result in costs totaling $4.7 trillion.
Impact Ratio =
natural capital cost as a percentage of monetary output (revenue)
Water (SE. Asia): 6.1
Water (N. Africa): 31.4
Land/Water Pollution: 3.7
1. Explore opportunities for adaptation and to improve resource efficiency, both internally and within the supply chain.
2. Evaluate options to change suppliers, sourcing location or materials, where existing suppliers are not willing to change.
"a clothing retailer owned by Inditex group, The world's largest apparel retailer"
Companies are starting to benefit from working with their suppliers to reduce risk.
Farrah Ahamad, Amanda Cassiday,
Max Chen, Richard Woodhull