Quantifying the natural, social and human impacts of projects and decisions alongside financial assessments.
It is becoming increasingly apparent that standard financial accounting practices are failing to fully quantify impacts and risks, particularly those associated with natural and social resources. Sustainable accounting approaches attempt to incorporate these considerations into an organisation’s monitoring and reporting processes, by quantifying impacts on natural, social and human ‘capital’, in addition to the standard reporting of financial capital.
We are working to embed sustainable accounting across our business: quantifying the natural, social and human impacts of projects and decisions alongside financial assessments. We are working with organisations including the Cambridge Institute for Sustainability Leadership (CISL), Accounting for Sustainability (A4S) and the Natural Capital Coalition to inform internationally developing techniques to better quantify natural and social impacts and improve our risk management and decision making.
Our business model and the capitals
We are embedding the concept of the Capitals into our long-term business planning, to help us ensure the affordability and resilience of our essential public services for current and future generations. The Capitals are the valuable assets which are critical to the success of any organisation, and effective management of the Capitals helps ensure the resilience of our business.
We have instigated a range of projects to examine our impacts and dependencies across the Capitals, assessing a range of economic, environmental and social attributes associated with our activities and considering both our negative and positive impacts to society.