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Home » What are the 6 financial capital?

What are the 6 financial capital?

In its performance reporting, the Company has adhered to the Integrated Reporting (IR) framework, which assesses its performance across six distinct capitals. These capitals encompass various facets of the organization’s resources and value creation. Among these, the Financial capital holds significant importance, representing the monetary assets and resources possessed by the Company. This includes cash, investments, revenues, and profits, which are pivotal for sustaining and expanding operations.

In addition to Financial capital, the Company also evaluates its performance in terms of Manufactured, Intellectual, Natural, Human, and Social & Relationship capitals. The Manufactured capital refers to the tangible assets and infrastructure developed or acquired by the organization, such as buildings, equipment, and technology. Meanwhile, the Intellectual capital encompasses intangible assets like patents, trademarks, and proprietary knowledge, which contribute to the Company’s competitive advantage and innovation capacity.

The Natural capital pertains to the environmental resources utilized or affected by the Company’s operations, including land, water, biodiversity, and ecosystems. Similarly, the Human capital focuses on the skills, expertise, and well-being of the workforce, recognizing them as valuable assets essential for achieving organizational goals. Lastly, the Social & Relationship capital underscores the importance of the Company’s relationships with stakeholders, including customers, suppliers, communities, and regulators, as well as its contributions to societal well-being and sustainability.

(Response: The six financial capitals are Financial, Manufactured, Intellectual, Natural, Human, and Social & Relationship.)