This article was originally published on the Institute of Water.
“The water industry must consider natural, social and human capital in addition to financial capital in its business planning if it is to successfully address the myriad of challenges it faces over the coming years, according to global infrastructure services firm AECOM.
Natural, human and social capital are not typically included in business planning, but incorporating them into decision-making now could help shape a more financially secure water industry in the future, argues AECOM. The company says that identifying and valuing these additional forms of capital could transform the basis on which billions of pounds worth of investment decisions are made.
AECOM’s environmental economists and asset managers are working with companies in the water sector to develop ground-breaking methodologies for evaluating potential investments in managing assets, such as reservoirs, treatment works and sewers, using an extended range of metrics that include natural, social and human factors.
…AECOM says that ignoring natural, social and human capital is no longer viable. The water industry has obvious impacts and dependencies on natural, social and human spheres and must consider these in its business planning and delivery if it is going to become more sustainable and financially secure…”
Read on at: Institute of Water.