A great deal of this environmental damage is caused by the way we do business. If we are to create a truly sustainable global economy, then we must change our economic models so that business can become part of the solution, not part of the problem. An increasing number of investors have begun to factor environmental, social and governance issues into their decision-making. This report helps investors measure the unaccounted costs of business activities by putting a price on natural resources that power business but rarely show up on corporate balance sheets.
This study provides an important rationale for action by large institutional investors that have a financial interest in the wellbeing of the economy as a whole. By exercising ownership rights and through constructive dialogue with companies and public policy makers, these “Universal Owners” can encourage the protection of natural capital
needed to maintain the economy and investment returns over the long term. Many Universal Owners are signatories to the Principles for Responsible Investment (PRI), and we hope they continue to exercise leadership and responsible ownership by acting on the ideas and recommendations in this report.
