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Civil, Environmental and Sustainable Engineering (2014/02/09)
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4.2.1. Natural Capital

Natural Capital is any stock or flow of energy and material that produces goods and services. It includes:

Resources - renewable and non-renewable materials

Sinks - that absorb, neutralise or recycle wastes

Processes - such as climate regulation

Natural capital is the basis not only of production but of life itself!

4.2.2. Human Capital

Human Capital consists of people's health, knowledge, skills and motivation. All these things are needed for

productive work.

Enhancing human capital through education and training is central to a flourishing economy.

4.2.3. Social Capital

Social Capital concerns the institutions that help us maintain and develop human capital in partnership with

others; e.g. families, communities, businesses, trade unions, schools, and voluntary organisations.

4.2.4. Manufactured Capital

Manufactured Capital comprises material goods or fixed assets which contribute to the production process

rather than being the output itself – e.g. tools, machines and buildings.

4.2.5. Financial Capital

Financial Capital plays an important role in our economy, enabling the other types of Capital to be owned

and traded. But unlike the other types, it has no real value itself but is representative of natural, human, social

or manufactured capital; e.g. shares, bonds or banknotes.

4.2.6. Sustainable crisis/development

We are facing a sustainability crisis because we're consuming our stocks of natural, human and social capital
faster than they are being produced. Unless we control the rate of this consumption, we can't sustain these vi-

tal stocks in the long-term.

We believe that by maintaining and trying to increase stocks of these capital assets, we can live off the inco-
me without reducing the capital itself. But for this to happen, it is the responsibility of every organisation,

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