Costing for natural resources

THE aim of most businesses is primarily to earn profits, but should this be done at the expense of the environment?

It has been estimated that we’re currently using 1.7 Earths to maintain our appetite for natural resources. We are, among others, over-fishing, over-harvesting our forests, and emitting more carbon dioxide (CO2) into the atmosphere than the ecosystem can absorb.

In fact, we are using more ecological resources and services than nature is able to restore.

Whether we realise it or not, every human activity has a direct or indirect impact on the environment, from the use of natural resources as raw inputs for production to industrial discharges that may be harmful to the environment.

Nature provides the life support systems upon which our growth, wellbeing and prosperity depend. If we don’t put our consumption in check now, our days will be numbered.

There is a saying that you can’t manage what you don’t measure. In this aspect, the concept of “natural capitalism” has been introduced to quantify or put a value on natural resources. However, the response in Asia towards natural capitalism thus far is not particularly strong, as most people are uncomfortable about putting a price on nature. Some argue that it’s completely immoral to ascribe any tangible value to nature while others worry that doing so would jack up the cost of production.

But it cannot be denied that natural capital underpins all other forms of capital, hence organisations must have a better understanding of the ways in which their businesses impact or rely on nature.

We must encourage businesses to take into account their relationship with all forms of capital in their approach to decision-making. Only then can we truly look forward to a future where we can thrive in every way possible.

DR RENARD SIEW Climate Reality leader Kuala Lumpur