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Natural Capital

… with regard to business models?

Barriers concerning business models can obstruct the mainstreaming of natural capital. In this, companies and financial institutions are the most important agents.

Companies

There is no uniform method to integrate natural capital in a business model, making it unclear for businesses which instruments work best. Another barrier for integrating natural capital is the ‘tragedy of the commons’: multiple businesses use the same ecosystem service without anyone paying for it.

CoP Financial Institutes & Natural Capital (2015a), p. 11.

Financial institutions

There is a mismatch between the available methods for integrating natural capital in their products, services and decision-making, versus the requirements of financial institutes for these methods. The indices are based on the company policy and do not look at the implementation and results. Besides that, there is a gap between the available models and the wishes of the companies with regard to risks, time frame, size, etcetera.

CoP Financial Institutes & Natural Capital (2015a), p. 13.