Regarding natural capital management at Japanese companies, the author outlines changes in how companies engage with nature and introduces a method of mapping the relationship between the entire business and nature as a first step.
Following the previous installment in this series, this article discusses the concept of natural capital management and how to implement it, based on the approach of Japanese companies that live in harmony with nature. Although Japanese companies have traditionally valued nature, they are said to face difficulty and uncertainty in incorporating natural capital into management decisions.
As a first step, the article proposes taking an overall view of the company's businesses and mapping on a single chart which businesses depend on which aspects of nature and where their impacts are likely to be greatest. Information such as water consumption and raw-material sourcing is managed by individual departments, making it essential to organize it in a form that allows the overall picture to be shared.
After the map is created, priorities are set and decisions are made on where to conduct more detailed analysis within the limits of available personnel and budgets. The article presents a method of focusing on factors important to the business, such as high-volume factories, key sites and concentration points for raw materials.
Natural capital management does not mean starting new environmental activities. Rather, the article concludes that it is important to recognize how nature supports the business and link this understanding to management decisions that prepare for change. It emphasizes integrating into management decisions the respect for nature that companies have maintained to date.