Is your supply chain at risk from $7.3 trillion natural capital costs?
Our research for the TEEB for Business Coalition Natural Capital at Risk The Top 100 Externalities of Business finds that resource intensive suppliers in many regions do not make sufficient profit to cover the environmental costs of their products and services. For example, your suppliers may be using water from unsustainable sources, causing damage to business critical ecosystem services or generating health hazards from air pollution.
In the absence of regulation, natural capital costs usually remain external to corporate accounts until an event such as drought causes rapid internalization. Just last year, the US drought impacted corn and soybean production, causing commodity prices to rise steeply. Impacts through the supply chain on agricultural products and food prices are expected to be felt throughout 2013. And last month Weetabix announced that last year’s disastrous summer forced it to halt production of its most popular lines after the company exhausted its supply of high quality British wheat, following what it described as the worst harvest in decades.
The webinar explains why companies should identify natural capital costs concealed within global supply chains and how natural capital accounting can be used to get ahead of the trend towards external costs being internalized through pricing, shortages and ultimately regulations.