Citola Blog
Three Dimensional Capital: Financial, Human and Natural
In previous blog posts, we have stated our view of the large commercial opportunities emerging from the transition of business and investors realising the necessity to optimise triple bottom-line outcomes (economic, environmental, social) and value natural capital (i.e. the dividend society receives from nature and the environment).
Pavan Sukhdev, the founder and CEO of GIST Advisory, has written an article recently, ‘Three Dimensional Capital’, that resonates with this view. In the article, Pavan describes the value of natural capital and how it relates to an ideology of economics and how human and natural capital are as important as financial capital but often ignored.
“I am often asked how I reconcile my capitalist background with my commitments to nature and the environment? I give my stock reply 'I don't reconcile them – I am a total capitalist'. And usually, the conversation ends there,” states Pavan.
Like the view we have expressed previously, Pavan is merely pointing out that large and liquid environmental markets are part of the transition to a ‘green’, low-carbon and sustainable economy.
And as was said on our blog recently in relation to Warren Buffett's quote on gold, that anyone watching from Mars, who we could assume has pioneered an abundant, renewable and clean energy source, would be scratching their head about the drilling for oil and our current reliance on fossil fuel based power generation. And the lack of value attributed to natural capital.
Incidentally Buffet was attributed to have said: “It gets dug out of the ground in Africa, or some-place. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head.”
The full article can be seen here.
Post new comment