The 5 Capitals of Sustainability

Known globally as The Risk Doctor, David has been working in risk management for about 30 years. He has worked in 48 countries on every continent except the Antarctic (too cold!), with clients in most industries.

  Risk Management   ProjectsAtWork  

Sustainability has become increasingly important to organizations as both a business objective and a necessary constraint. But what does it mean? And how should it be included in the risk process? Here are five areas that should be considered.

The word sustainability has changed its meaning significantly over time in the business world. At first it only referred to impact on the environment. In 1995, John Elkington, from British consultancy SustainAbility, introduced the idea of the “triple bottom line” of “Profit/People/Planet” and suggested that an organization needs to be sustainable financially, socially and environmentally.

More recently, work on sustainability in 2007 by the Forum for the Future expanded this further, identifying five areas that contribute to the production of value by an organization, and which need to be managed sustainably. They call these The Five Capitals of Sustainability. They are:

1. Natural Capital. This represents the environmental and ecological resources that are needed to produce goods or deliver services. They include energy, water, fuels, raw materials and other natural resources, as well as the ecosystems from which these are taken.

2. Human Capital. This is not just about individuals as resources, but it also covers their energy, health and wellbeing, knowledge and skills, motivations and emotions.…

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