To make better decisions, business needs reliable, relevant and fit-for-purpose data on natural, social and human capital alongside financial information.
To accelerate progress on this front, WBCSD led development of the Natural Capital Protocol (2016) – on behalf of the Natural Capital Coalition – as well as the Social and Human Capital Protocol (2017). These Protocols are frameworks for business to measure and value their non-financial impacts and dependencies to help manage risks and leverage opportunities that may not be visible using traditional business processes.
As we gain insight into our relationship with natural, social and human capital, we have the opportunity to seize unprecedented benefits, while managing serious risks.
Although many tools exist to shed light on these issues, there is no agreed set of methodologies and datasets to measure and understand natural, social and human capital. Plus, the technical expertise needed to carry out assessments can be a barrier for uptake and implementation.
We need to bring global efforts together in order to agree upon a set of generally-accepted prescriptive methodologies and datasets that enable consistent and comparable results.
Assessing natural, social and human capital alongside financial capital will provide more meaningful information, and better decisions – for business, society, the environment and - ultimately - investors.
At WBCSD, we aim to increase uptake and implementation of the Protocols to help companies measure and value natural, social and human capital.
This year, we’re building on our work by focusing on establishing an open multi-stakeholder Social and Human Capital Coalition, and are planning the public consultation on the Social and Human Capital Protocol.
This is all part of our efforts to “cut through” the many tools available in order to encourage convergence and alignment around generally-accepted methodologies and datasets, by leveraging existing toolkits on natural as well as social and human capital.