“…It is important for businesses to understand the depletion of natural capital attributable to them, that is, what and how much impact on the surrounding biodiversity and ecosystem has been caused by them, so that they can take measures to minimise it.
Organisations can do this as part of their social responsibility activities as well. Following the latest amendments in the Companies Act, companies with qualifying attributes are required to spend at least 2 per cent of the average of three years’ net profits on CSR projects since FY 2014-15.
Few corporations in India have taken up biodiversity and ecosystem conservation-based CSR projects. Companies must work with and within communities to build capacity for economic valuation of natural resources at the lowest organisational level, for example, local panchayats and block-level institutions. They must also try to ensure that local institutions are the owners of the valuation process and its results.
Read on at: The Hindu.