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NAT.B07.EF Resource Exploitation and Circularity Performance Reporting Decoupling Finance & Consumption
Does the company report quantitatively on its group-wide circularity performance and demonstrate it is decoupling financial performance and linear resource consumption?
18114156
Researched

About the data

This metric was designed by The World Benchmarking Alliance, more information can be found here. Sources and Alignments for each indicator can be found here as well as the scoring guidelines here 

The World Benchmarking Alliance's Nature Benchmark measures and ranks the world's most influential companies on their efforts to protect our environment and its biodiversity.

This metric relates to the Indicator: The company demonstrates it is working towards decoupling economic prosperity from resource consumption and environmental degradation. 

Rationale: The current dependence on a linear economy is largely responsible for most impacts on nature and biodiversity. Some 90% of biodiversity loss is caused by the way we extract and process materials, fuels and food (UNEP, 2019). Approximately 60 billion tons of renewable and nonrenewable resources are extracted yearly, a 15% augmentation since the 1980s (IPBES, 2019). Furthermore, following land and sea use change, the largest negative impact on nature is the direct exploitation, especially overexploitation, of natural resources and organisms via harvesting, logging, hunting and fishing (IPBES, 2019). By decoupling economic prosperity from resource consumption and environmental degradation, circularity offers opportunities for new and better growth that not only help safeguard and rebuild biodiversity but also provide benefits. 

 

WBA analysed all publicly available group-level disclosure in English on the applicable group website, which was predominantly annual reports and sustainability reports. Draft assessments were then sent to each company inviting them to provide feedback. This feedback could include additional publicly available group disclosure published. These were then reviewed and finalised. Final assessments were then shared with each company before being published online.

For this metric, need to express quantification of financial results on the organisation: revenues coming from linear or circular inflows compared to all revenues. Need to meet element e. as without strong numbers, it would mean nothing and to show progress (moving away from linear economy). 

Keywords: CTI revenue, circular material productivity

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