Environmental capital is all the natural resources found within a country.
Environmental capital includes all the natural resources found in a country. It includes renewable resources such as plants and clean air, as well as non-renewable assets such as oil and gas. Analysis of environmental capital is often based on how this capital is affected by business activities such as mining or manufacturing. These activities are considered sustainable when they are carried out in a way that preserves existing environmental capital rather than consuming or damaging it.
Natural or environmental capital includes all resources that benefit society in some way. These assets can be vital to survival, such as food, air, and water, or more intangible items, such as beautiful landscapes and views. It reflects the sum of renewable and non-renewable resources.
Renewable forms of capital include things that society can do more of. Some examples include foods such as grains, livestock, and fruits. Fresh water is also considered a renewable asset because it can be purified mechanically or naturally through the water cycle. Clean air is also a form of capital, renewable through filtration and purification. Wood and fiber, which are used to make houses and clothing, are also considered renewable resources.
Nonrenewable forms of environmental capital include assets that are at risk of being used or disposed of. The most cited example of this is fossil fuels such as coal or oil, which take millions of years to regenerate. Rainforests and other ancient forests are another example, as are endangered species or plants. Minerals, metals and gems, another form of non-renewable capital.
As society shifts to a greener, more sustainable lifestyle, business and government are under pressure to preserve existing environmental capital. This means investing in more sustainable technologies and production methods, such as wind or hydroelectric power generation, pollution control, and responsible harvesting and fishing. In essence, a sustainable society is one that provides all the resources people need to live now, without compromising the lives of future generations.
In a traditional capitalist society, companies have little motivation to protect environmental capital. Some companies choose to behave more sustainably in response to customer demand. Only when customers change their demands and talk to their money, will more companies be motivated to change their habits. Citizens can also encourage elected officials to bring about change by introducing new laws that require companies to protect environmental capital.