Asda, Mars and Nestlé work on managing ‘natural capital’

A new report released by The University of Cambridge Institute for Sustainability Leadership (CISL) has highlighted the challenges and solutions facing companies in achieving sustainable supply chains and avoiding environmental degradation.

The CISL are inviting world leading beverage, food and forestry companies to join the other business leaders CISL are currently working with in order to embark upon new methods of protecting the natural environment.

The report is targeted at international companies that heavily rely on ‘natural capital’ involving natural resources such as soil, timber and water as well as other material that support global supply chains and provide commercial value.

It summarises challenges and provides solutions encouraging companies including Asda, Mars and Nestlé to implement appropriate methods to enhance natural capital including fresh water, soil and biodiversity as well as dealing with increasing consumption and climate change.

The report notes that the more the global environmental degradation increases, the more damage it will cause for the global economy.

The report states that’s its aim is to “define the future status and condition of our planet’s most vital resources as well as determine the success of business operations across the globe”.

Director of the CISL Polly Courtice said: “Many of the companies we work with at CISL are already implementing measures to reduce their impact on natural capital across their supply chains, but we all recognise the need to go further and get many more businesses involved”.

She continues: “By developing a body of evidence in partnership with a group of companies we aim to translate the management of natural capital into tangible commercial benefits – highlighting in real terms the financial savings, security of supply and brand enhancement on offer”.

Andy Clark, Chief Executive of Asda, said: “Asda is working with CISL to make more companies aware of the business case for better management of natural capital”.

General Manager for Environmental Sustainability at global agribusiness Olam International, Chris Brown commented: “With agricultural supply chains encompassing 65 countries and products as diverse as almonds, rubber, cocoa and rice, we are acutely aware of the challenges facing natural capital today. However, these challenges can never be tackled by businesses in splendid isolation, but instead require holistic thinking and concerted collaboration between many and diverse partners - platforms like CISL offer a forum to do just that”.