The Sigma Project

Introduction How to use Foreword Executive summary SIGMA Principles Principles at a glance Accountability The 5 capitals Natural capital Human capital Social capital Manufactured capital Financial capital Other approaches Management Framework Views on the Guidelines

maintenance and enhancement of the five capitals

The five capitals component of the SIGMA Guiding Principles provides a basis for understanding sustainable development in terms of the economic concept of wealth creation or ‘capital’. Any organisation will utilise these five types of capital to deliver its products or services. A sustainable organisation will maintain and, where possible, enhance these stocks of capital assets, rather than deplete or degrade them.

The five capitals apply at every stage of the product or service lifecycle, including through the supply chain, during production or service creation, when products and services are delivered, used, and at the end of their life. Hence a product or service will be based on a combination of all the capitals – built with human skills and knowledge, natural materials and social structures, using machinery and infrastructure and financial investment.

The following sections explain how each capital is relevant in an organisational context and provide guidance on how they can be managed and enhanced¹. Examples are given of how organisations can maintain and enhance the different capitals. Organisations should focus on the areas where they have the greatest impact, which will differ according to their circumstances.

footnotes

1	These lists of activities are not wholly inclusive, nor will every aspect be relevant to all organisations.

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