Natural capital
Natural capital comprises environmental resources and processes on which an organisation depends or which it affects. It includes renewable and non-renewable resources and ecosystem conditions. Integrated reporting explains relevant dependencies and effects, including depletion or damage, without assuming that every environmental resource is owned by the organisation.
Worked example
A producer depends on reliable water supplies and describes how its operations affect water availability and quality.
Common mistake
Do not equate natural capital only with minerals or assume a resource matters only when it appears as an accounting asset.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | SBL | Direct | September 2026–June 2027 |