Nature is a key stakeholder in our
planet’s future. yet it has no choice but
researchers want to change this, by
giving nature a mandatory line in
financial reports. a new paper by
accounting professors at the alliance
Manchester business school in bokane
University, in Milan calls for businesses
to recognize how nature is affected by
their operations. the report by
professors recommends completely
rethinking corporate governance,
accounting and auditing. so that nature
can be accounted for, according to the
research the current accounting system
has its roots in the first Industrial
Revolution, and this system only
recognizes production and assets and not
how nature is affected by this
production . in terms of how it has damage
destroyed or exploited.
so to rectify this a researchers call
for adding a line for nature in the
current accounting and auditing system.
the researchers argue that by putting
nature on the balance sheet companies
would have to account for it in their
financial reports ,and devise ways to
repair and even improve it . moreover the
report suggests that this would also
make nature a visible key stakeholder
with a voice and value , compelling
businesses to move towards becoming net
positive.
the researchers long-term hope is that
government ,central banks and Regulators,
could legislate to make this compulsory,
and in the meantime the urge
cooperations and organizations to start
adding nature in their financial reports
voluntarily, and to set up bonds for
Nature’s repair and Revival. as they
believe that accounting and accountants
can save the world.
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