January 1st, 2023

2020 and 2021 has been a challenging two years for everyone around the world, with the global pandemic having some kind of impact on us all. It has made people re-evaluate what is important to them and to no longer take everyday things for granted – from front line workers finally receiving recognition, to the appreciation of green spaces and valuing easily being able to see friends and family. 

It’s been a time for many to take stock and this wasn’t just a benefit to mankind. With people travelling less and global carbon emissions reduced, air quality significantly improved and there were even reports of wildlife appearing in cities, with dolphins spotted in the canals of venice.  

Capitals Coalition: Natural capital
Credit: Capitals Coalition

All of this has highlighted the significance of some of our essential interconnections and our dependence on complex, globalised systems. It has really made people realise the importance of natural, social and human capital and there is no company that champions this more than Capitals Coalition.  

Capitals Coalition collaborates with over 380 companies and organisations around the world enabling them to understand the value of natural, social and human capital, and how their success is directly or indirectly underpinned by them.

Credit: Capitals Coalition

They empower companies with the knowledge and understanding of how they impact and depend on the capitals, and this in turn transforms companies’ decision-making to consider the capitals and create the greatest value across them. 

What is capital I hear you ask? Many people traditionally think of capital as money, however it is anything that confers value and benefit to its owner. In general, capital is a critical component of running a business day-to-day, financing its future growth and building financial stability.

Capitals Coalition: Human capital
Credit: Capitals Coalition

Capitals Coalition wants to shine a light on natural, social and human capital within businesses, highlighting how they very much work in the same way as traditional capital – if they are invested in they create value, and if they are disregarded their value is limited. 

The moment that companies realise their impacts and dependencies on the capitals is pivotal, many issues that they previously had considered unimportant and not prioritised are actually the very issues that underpin the success of the business. 

We wouldn’t be here if it wasn’t for our capitals and understanding the value they provide is imperative. Currently, as it stands, we are failing to mitigate climate change, reduce inequality and protect the natural world simply because companies are unequipped to make sense of their complex relationships with the capitals, and to recognise the ways in which they impact on them and depend on them for success. 

Credit: Capitals Coalition

That’s why the Capitals Coalition wants to change the way that companies are run in order to help ensure a brighter future. An economy will only thrive and prosper if communities are flourishing, there are strong and resilient social institutions, prosperous natural ecosystems and a stable climate. Capitals Coalition wants to change the conversation, embedding the value of a capitals approach in the global conversation. They want to change the rules, modernising and transforming the landscape so the incentives offered by investors, governments, shareholders and regulators, reward those that adopt the Capitals approach. Ultimately they want to change the system to ensure that the value of nature, people and society informs decision making, as each of these capitals form the foundations of human wellbeing and economic success. 

As a society, as we are becoming increasingly aware and understanding more and more the importance of natural and social issues, with this, we are demanding more from businesses and organisations. 

Credit: Capitals Coalition

With companies aware of this demand, many are hopping on the ‘corporate social responsibility bandwagon’. However, unless these initiatives run through the very core of the business, customers will soon see through it. That’s why what Capitals Coalition is doing is so good, as it gives credibility to organisations that put nature, people and society at the centre of the business and ensure that their decision making revolves around these core, central values. 

It is vital that companies invest more time and effort into this. Not only would it help the general success of the business, but if more companies became part of the Capitals Coalition, and considered the value of natural, social and human capital in their decision-making, it would create a fairer, just and more sustainable world. 

We must not forget the learnings that we made through the pandemic, we must instead take steps forward to create a thriving world that benefits nature, people and society as a whole.  


Written by Daisy Rogers, Head of Copy and Content, Hatched.

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