CIMA: Accounting for Natural Capital
This report from CIMA, EY, the International Federation of Accountants (IFAC) and the Natural Capital Coalition examines business issues associated with natural capital depletion, arguing that action is needed.
It presents natural capital depletion as one of the most prominent business concerns in the 21st Century, yet an 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.
The report highlights that organizations that respond swiftly and embrace opportunities to innovate and manage risks will thrive, whereas those who do not will suffer from rising costs, risks and reputational damage. It details the efforts and approaches some leading companies are starting to use to account for their relationship with natural capital.
The paper argues that accountants and finance professionals have a vital role to play in helping companies navigate the associated challenges and opportunities.
