As business impacts and dependencies on natural capital reach a critical point, this report by ACCA, Fauna & Flora International and KPMG calls for robust reporting on the management and use of key commodities including commitments to reduce impacts on natural capital.
The report reviews published information from companies with an intensive use of five key commodities with a high impact on natural capital: beef, cotton, palm oil, soya and sugar. The use of these commodities is a critical sustainability challenge and the report discusses many examples of the approaches taken to disclosure by significant users of these commodities. Standard practices revealed by these companies include: supplier certification, supplier audits, membership to industry wide sustainability initiatives and monitoring and traceability activities.
The report demonstrates a clear link between an organisation’s strategy for managing its use of these commodities and the extent to which it impacts on the natural world. The unsustainable use of natural capital can create or exacerbate corporate risk and is becoming increasingly important to investors.
Outside a small leading group the majority of companies are not reporting on natural capital impacts and dependencies. This leaves investors struggling to assess natural capital risks and opportunities.