Natural Capital: source of industrial growth

Sustainability reporting with E P&L
PostedJanuary 20, 2016, in  Step 7: sustainable excellence
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Sustainability is a question of dreaming, daring and doing. But sustainability is also: saying what you do. Being accountable to stakeholders, i.e. reporting. Without regular management reports, an effective ‘green’ policy is not possible without reports based on reliable data. Fortunately, there is a handy tool available for that.

Sustainability reporting

Over the past weeks we have talked about sustainability having the wind at its back. Climate policy is going to have an increasing influence on our lives and that offers opportunities. Sustainable entrepreneurs know how they can transform these ambitions into reality. And then… it is time to reap the benefits. Reporting to stakeholders on sustainable business performance. But how do you do that?


Natural Capital

Traditionally, management reports put the emphasis on financial results. Understandable, but short-sighted: the World is changing rapidly and if you don´t change with it, you will get left behind. The world´s population is growing but the amount of natural resources is actually decreasing. Scarcity is lying in wait, which is all the more reason to take our treatment of natural capital seriously. In fact: more and more often ‘Natural Capital’ is named as the major driver for ‘the next industrial revolution’. Smart entrepreneurs already know how to anticipate on that. 

Environmental Profit and Loss Account

Multinational Kering is one such forerunner. At this French fashion house, they continuously analyze the entire chain. An ecological footprint is taken of every activity. All the data is entered into the ‘Environmental Profit and Loss Account’ (E P&L), a system developed by Kering himself. Then, all activities are assigned a monetary value, so that the financial impact also becomes clear. That provides quite some benefits: 

  • Better view of the effectiveness of products, processes, materials and technologies.
  • Better relationships with suppliers, more mutual involvement.
  • More transparency towards stakeholders, better mutual relationships.
  • More insight into opportunities and risks, anticipate change faster.
  • Better company results, more eye for improvement measures.


Powerful stimulus

Whoever recognizes the power of Natural Capital would be well-advised to substantiate this with figures. To measure is still to know and with the right system sustainability is also given a monetary significance. That can be a powerful stimulus for ‘sustainable business decisions’. Kering is already setting a good example, as their methods are open source and therefore available to everyone

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PostedJanuary 20, 2016, in Step 7: sustainable excellence
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