Five Capitals
Encyclopedia
The Five Capitals Model of sustainable development
was developed by the organization Forum for the Future
. The model groups together:
The model is used to show stocks and flows of resources as they relate to a sustainable
society and economy.
Sustainable development
Sustainable development is a pattern of resource use, that aims to meet human needs while preserving the environment so that these needs can be met not only in the present, but also for generations to come...
was developed by the organization Forum for the Future
Forum for the Future
Forum for the Future is a British non-profit organisation with a mission to promote sustainable development. Its vision is of "businesses and communities thriving in a future that’s environmentally sustainable and socially just". It runs partnerships with more than 90 organisations across business...
. The model groups together:
- Natural capitalNatural capitalNatural capital is the extension of the economic notion of capital to goods and services relating to the natural environment. Natural capital is thus the stock of natural ecosystems that yields a flow of valuable ecosystem goods or services into the future...
- Social capitalSocial capitalSocial capital is a sociological concept, which refers to connections within and between social networks. The concept of social capital highlights the value of social relations and the role of cooperation and confidence to get collective or economic results. The term social capital is frequently...
- Human capitalHuman capitalHuman capitalis the stock of competencies, knowledge and personality attributes embodied in the ability to perform labor so as to produce economic value. It is the attributes gained by a worker through education and experience...
- Manufactured capital
- Financial capitalFinancial capitalFinancial capital can refer to money used by entrepreneurs and businesses to buy what they need to make their products or provide their services or to that sector of the economy based on its operation, i.e. retail, corporate, investment banking, etc....
The model is used to show stocks and flows of resources as they relate to a sustainable
Sustainability
Sustainability is the capacity to endure. For humans, sustainability is the long-term maintenance of well being, which has environmental, economic, and social dimensions, and encompasses the concept of union, an interdependent relationship and mutual responsible position with all living and non...
society and economy.