The days of measuring corporate performance by financial metrics alone are over. Business needs to measure and value its relationship with natural and social capital in a credible and generally-accepted way, to produce reliable, relevant and fit-for-purpose information that can inform decision-making and ensure meaningful reporting and disclosure. In the future, business can then systematically account for natural and social capital, in the same way that it does for financial capital.
Redefining Value has been working on the development of two Protocols that offer robust, generally-accepted, step-by-step processes to better identify, measure and value relationships (both impacts and dependencies) with natural and social capital.
The measurement and valuation of non-financial capital enables businesses to better understand the risks and opportunities that arise from their complex relationship with the environment and society. This information allows more robust decision-making that benefits both long-term business strategy and ensures a healthier, functioning planet and economy into the future.