According to established integrated reporting practice and theory, companies and institutions manage six capitals to sustain. Sustainable management and reporting thus arrange its activities around following capitals:
In Capitals Background Paper for IR is described as »providing the environment in which other capitals sit.«
It should thus come as straightforward that
climate, together with the soil, minerals, water, air, fossil fuels, nuclear
fuels, sunlight, condensed water in clouds, and many others, come as logical
parts of natural capital. I would also add all frequencies of radiation from
sound, heat, visual, ultraviolet to all radio frequencies, non-ionized and ionized
radiations as well.
However, let me focus on climate as not the
only most apparent environment in which other capitals sit, but also as far the
most important if not the only important part of natural capital, according to
various non-scientific political organizations and Greta herself.
Due to climate change, »Our House is on fire,« the EU parliament declares. Furthermore, we all know that nothing else matters when a house is on fire. There is only the fire that matters. Thus: forget on all other capitals or even on all other natural capitals.
I have already mentioned that this is a purely
non-scientific view. Let us see if the body that governs Integrated reporting
initiative will object to the EU parliament decision. The body that propagates a holistic view on
sustainable development and that has developed a considerable body of evidence
in support of integrated thinking and integrated reporting. I hope they will,
though I seriously doubt.
Because what we are facing at the moment is a
memetic activity of shifting climate from natural to social capital. Yes. At
the moment, it is politically incorrect to question the dominancy of human
influence on climate change. That dominancy is a fact comparable to gravity. If
one contradicts the dominancy of human influence on climate is like objecting
gravity. It is a non-negotiable fact.
It is at the core of sustainable management
and integrated reporting to evaluate and negotiate multiple factors that affect
the prospects of an institution or a company. We all know that lowering
investment in human capital might strengthen financial capital in the short
run. We know that not having enough capital in the short-run might kill
prospects for a future run. We know that one has to negotiate costly relations
to local communities with as costly investments in production capital.
Out of all possible factors, climate now
Let me conclude this post with a broader
perspective, for the climate is not the only factor that shifted from its
original point into the social capital of political correctness. The majority
of such shifts occur from human to social capital, health in particular. Once a
personal/human attribute becomes more and more social. Not only tobacco,
alcohol, but even more healthcare in all dimensions become issues of the
community. The responsibility for my health does not lie in me anymore, but in
the anonymous community represented by the state. There is still my skin in the
game, and costs are mine, but benefits are commonly distributed. Most often
distributed so that few gains while majority loses.
Climate change issue is thus part of a much
more full spread of collectivization. Let us name is with its proper name: