ASrIA lends weight to Natural Capital Declaration
23 May 2013
News, Asia, Global, Hong Kong
By Asia Asset Management
The Association for Sustainable and Responsible Investment in Asia (ASrIA) has become a supporter of the Natural Capital Declaration (NCD), a commitment by financial institutions across the globe to address the value of natural resources within their financial products and business operations.
Jessica Robinson, ASrIA’s Hong Kong-based chief executive, said: “The financial sector has a critical role to play in addressing how we value natural capital. For too long, the value of goods and services provided by the natural environment has been regarded as ‘free’ and this urgently needs to change. Importantly, the NCD is a finance-led commitment – by the industry, for industry action.”
She continued: “The NCD is focused on developing tangible tools and metrics – for example, accounting and reporting processes that accurately measure natural capital factors. This is very much needed in Asia and ASrIA is proud to be a supporting organisation of the NCD and promoting it in the region.”
The purpose of the NCD, which was launched just ahead of the June 2012 UN Conference on Sustainable Development, Rio+20, is to encourage financial institutions to integrate natural capital considerations into financial products and services, and into how they conduct business.
ASrIA will also actively participate in the working groups of the NCD in order to support the consultative process and provide regional perspectives where possible.
NCD signatories and supporters will help achieve these objectives by developing metrics to better define how financial institutions depend on and affect nature, and by creating methodologies for financial institutions to value and account for the role nature plays in the economy.
Signatories and supporters also are working on how to account for natural capital in financial statements, and how financial institutions can increase the level of disclosure they provide about the use of natural capital within their business operations and supply chains, alongside disclosures made of other environmental, social and governance (ESG) factors.
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