We present and introduce to the management of projects of different types a model that considers the integration between traditional capital, natural capital and social capital.
In order to execute the integrative model and thus achieve the visibility of the strategic relationships between the various assets and values of the different forms of capital, it is essential to implement a reflective strategy that allows the incorporation of value considerations from various economic spheres and perspectives and social.
For this purpose, our model considers the inclusive development of relevant relationships between interest groups, in order to promote cooperation to achieve the best management, financing and knowledge development proces
A Case: Waste Management and Natural Capital
Waste management can have an impact on natural capital assets both in the supply chain, in the production chain, in the service chain, in the environmental and social impacts, as well as in the generation of new natural capital assets.
In our integrative model of natural capital, waste management must first be analyzed as part of a material or natural resource management system, taking into account the relevant relationships of such management with traditional capital and social capital.
The first general step is to establish a baseline of natural capital taking into consideration the corresponding industry standard. With this you can understand how natural capital is managed on average, and what their associated reductions are.
The second general step is to evaluate in a specific way how a change in material management -for example, through the use of new technology to treat waste- facilitates the increase in yield and recovery of natural capital.
In this context, natural capital may involve not only the corresponding materials but also other values or assets of natural capital that are directly related to such materials (eg associated ecosystem services), as well as other natural capital resources used in the traditional provision of waste (eg Landfill soils, corresponding greenhouse gases, expenses and associated costs, etc.).
Not only that, in our integrative model, when considering social capital, we must also take into account, for example, the community and social effects of such facilities, which can also be reflected in special valuations of natural capital.
The delineation of natural capital that results from the application of the integrative model -for example, in the analyzed case of “waste management” described in the previous section- can lead to various business models.
One) This natural capital can be directly activated by the final customer – whose waste is treated by the new technology – so that their accounting books – through environmental accounting of natural capital – begin to reflect such new assets. Once posted it becomes possible:
(a) financially relieve an accounting structure with natural capital;
(b) Relieve such financial activation at the stock listing level in special stock exchange indices for companies with natural capital (eg, Dowjones Sustainability Index, now also available in Santiago);
(c) reputationally relieving natural capital, associating it with a social responsibility management system;
(d) transact such assets with direct interested parties -first grade market-. (eg Co2, landscape, smells, etc);
(e) transact such assets with indirect stakeholders -market of the second degree- such as the market for compensation measures of the SEIA and the urban project road evaluation system.
Two) This natural capital can be activated by the provider of the technological solution, who could eventually generate economies of scale with respect to the same natural capital asset as the case may be;
Three) This natural capital may be subject to transactions with our platform of natural capital services (eg, adjusting part of the price of services by transfer of natural capital, or other intermediation models).