Businesses and investors are paying increasing attention to the erosion of the world’s natural capital – the ecosystems which provide the natural goods and services that we rely on, such as food crops, seafood, fresh water and timber, and climate regulation and biodiversity.
By some estimates, the global economy is incurring unpriced natural capital costs of $7.3 trillion/year, or 13% of global output.
Produced by the Carbon Disclosure Project (CDP) with advisory and content contributions from WWF, the report "Hard Truths" examines the case for investors to understand and mitigate soft commodities risks in their portfolios.
Since 2000, CDP has been requesting on behalf of our investor signatories that companies report their impacts on natural capital, starting with climate, then moving into water and forest-risk commodities.
This disclosure helps investors assess corporate exposures to environmental risks, and helps companies better understand and manage these exposures.