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16 June 2012 | Kamalpreet Badasha
Financial firms have been urged to sign a pledge to disclose the use of natural resources in supply chains ahead of next week’s Earth Summit in Brazil.
Today the Global Canopy Project is launching the Natural Capital Declaration (NCD), which calls upon governments to implement policies to give incentives to organisations to report on their use of natural capital, such as wood and water, and internalize environmental costs.
So far, 37 financial institutions including the ASN Bank, National Australia Bank, CIBanco, UniCredit and Oppenheim have already signed up to the NCD. The financial institutions aim to make better-informed purchasing decisions along their supply chains having signed up to the NCD.
It coincides with the merger of the Carbon Disclosure Project (CDP) and the Forest Footprint Disclosure Project (FFDP), giving organisations the opportunity to declare use of water, impact on forests and carbon emissions in one scheme.
“Through the Natural Capital Disclosure system, organisations can demonstrate to their investors that they have an understanding of the use of natural resources in their supply chains,” Frances Way, co-chief operating officer of CDP told SM. “The system seeks to encourage companies to think holistically about how different resources are used as they will be able to report on more than one.
“Investors are more concerned about supply chain management. There has been a shift in procurement thinking as organisations are having to prove the traceability of their products.”
The Rio+20 Earth Summit is organised by the United Nations Conference on Sustainable Development with the aim of renewing the political commitment to sustainable development and assessing the progress towards previously agreed sustainability goals.