Capitals Coalition - Re-defining value in decision-making
6th September 2021
Formed in 2020, the Capitals Coalition is a global collaboration that seeks to transform decision-making processes by redefining how we think about value. As advocates of a "capitals approach", the aim is to broaden our sense of value beyond a traditional understanding of "capital" as solely economic, to include four capitals, – natural capital, social capital, human capital and produced capital. The value that flows from all four capitals is foundational to human wellbeing and economic development, and needs to be better reflected in decision-making processes.
Scotland is one of 10 "Capitals Hubs" for the Capitals Coalition worldwide, with the Scottish Forum the lead organisation. The Hubs are formed by communities of practitioners in what has often been an organic process, and seek to build on existing networks such as the Scottish Forum.
The Hubs play an important role in connecting leaders and initiatives to engender greater collaboration around the capitals approach. There is an ongoing exchange of ideas and information, though a "network of networks", which informs both the Scottish Forum and the Capitals Coalition's own work areas, priorities and strategy.
Please see below an update of some of the Capital Coalition's current activities.
- Launch of the Value Accounting Network – This is a network of leading organisations that have published value accounting methodologies, guidance or standards. Together, the members of the network have shown that their work is complimentary and rather than stand alone initiatives. They will continue to meet monthly to address big challenges and build greater consistency in value accounting. They launched with this joint statement.
- Launch of the public consultation on the Transparent project’s standardised natural capital accounting methodology for business. The methodology builds on the Natural Capital Protocol with real experiences of businesses and aims to establish a prescriptive standard that generates widely consistent results across businesses and sectors. Take part in the consultation here.
- A new Primer has been released to accompany the Social and Human Capital Protocol.
- Global Biodiversity Framework - Capitals Coalition have been working with key partners including Business for Nature and We Mean Business to review the draft 1 of the Global Biodiversity Framework. Business for Nature have released their position on the current draft, as well as recommendations for improvements to ensure that the Framework is transformative, meaningful, implementable and enforceable. This will require global political will, a strong, measurable and prioritised set of enforceable targets, clarity on the duties of different actors to embed the value of nature in decision-making, the elimination of harmful subsidies and alignment of financial flows to the goals of the Framework, as well as implementation and monitoring tools to be deployed by different actors around the world.
For more information about the Capitals Coalition contact: firstname.lastname@example.org
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