When we talk about sustainable development, environmental and social management takes the sense of actively taking care of the planet and all beings living on earth. It does require other approaches than the ones we have adopted so far.
New accounting principles, as well as new forms of accounts, seem necessary. Financial information and financial returns, as the primary measure of success, are markers of the old paradigm, where short-termism was plaguing the capital markets’ mindset. The world is shifting to multi-capital value creation accounting where an organisation must measure for assets such as people (human capital), key relationships (social capital) and innovation (intellectual capital). In this new landscape, the accounting professionals' mindset will need to change, and finance teams will play a key role in bringing the necessary shift within organizations.
The challenge is huge for organizations: they must handle new forms of accounting and decision-making, while considering planetary boundaries. That is why the Integrated Multi-Capital Performance Research Center is committed to develop an integrated multi-capital accounting model; to train, inform and support companies and accounting professionals in this transition.