There are five types of capital from which the goods and services we need to improve the quality of our lives are derived.
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The natural capital It is any action or flow of energy and matter that produces goods and services. It includes:
- Resources - renewable and non-renewable materials
- Sinks- that absorb, neutralize or recycle waste
- Processes - How to regulate the climate
Natural capital is the basis, not only of production, but of the economy itself.
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The human capital it is made up of people's health, knowledge, skills and motivation. All of it is needed for productive work.
The empowerment of human capital Through education and training is critical to a thriving economy.
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The social capital refers to the institutions that help us maintain and develop human capital in association with others; for example, families, communities, businesses, unions, schools, and voluntary organizations.
The manufactured capital It comprises tangible goods or fixed assets that contribute to the production process rather than being the output itself - for example, tools, machines, and buildings.
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The financial capital plays an important role in our economy as it allows other types of capital to be exchanged and appropriated. But unlike the other types, it does not have a real value in itself, but it is representative of human, natural, social or manufactured capital; for example of stocks, bonds or bills.
We are facing a sustainability crisis because we consume our reserves of natural, human and social capital faster than we can regenerate. Unless we control the pace of consumption, our long-term actions are unsustainable.
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The Twelve Characteristics of a Sustainable Society
When describing how a sustainable society should be, we have to talk about a model that meets 12 characteristics.
These characteristics fit in the five capitals of which we have spoken.
Natural capital
- In their extraction and use, substances taken from the earth cannot exceed the capacity of the environment. environment to disperse, absorb, recycle or neutralize its harmful effects (for humans and / or the environment environment)
- In their manufacture and use, artificial substances cannot exceed the capacity of the environment to disperse, absorb, recycle or neutralize its harmful effects (for people and / or the environment environment)
- The ability of the environment to provide the integrity of the ecological system, biological diversity and its productivity is controlled.
Human capital
- At all stages of life, people enjoy a high level of health
- People are active in social relationships, and throughout their lives, they set and achieve high standards, both personal and professional.
- There is access to varied and satisfying opportunities for work, recreation, and methods of creative expression.
Social capital
- There are reliable and accessible systems of government and justice.
- Communities and society in general have positive values and an ingrained sense of purpose.
- The structures and institutions of society promote the care of natural resources and the development of people
- There are safe environments for work, accommodation and protection.
Manufactured capital
- All infrastructures, technologies and processes make minimal use of natural resources and maximum use of human innovation and new working methods.
Financial capital
Financial capital accurately represents the value of human, natural, social, and manufactured capital.
