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Natural Capital at Risk: The Top 100 Externalities of Business

Trucost has undertaken this study on behalf of the TEEB for Business Coalition. Findings of this report build on TEEB’s The Economics of Ecosystems and Biodiversity in Business and Enterprise and the World Business Council for Sustainable Development’s Guide to Corporate Ecosystem Valuation by estimating in monetary terms the financial risk from unpriced natural capital inputs to production, across business sectors at a regional level. By using an environmentally extended input-output model (EEIO) (see Appendix 2), it also estimates, at a high level, how these may flow through global supply chains to producers of consumer goods. It demonstrates that some business activities do not generate sufficient profit to cover their natural resource use and pollution costs. However, businesses and investors can take account of natural capital costs in decision making to manage risk and gain competitive advantage. 

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