What are "common capitals" in sustainability accounting?

"Common capitals" in sustainability accounting refer to the non-financial capitals that an organization utilizes and manages to create value beyond just financial metrics. This concept encompasses a range of resources that contribute to a company's overall sustainability performance, including natural, social, human, and manufactured capitals.

Non-financial capitals play a crucial role in how businesses assess their impact, risks, and opportunities in contributing to sustainable development. They allow stakeholders to understand the broader implications of a company's operations on society and the environment. By focusing on these capitals, organizations can create long-term value not only for shareholders but also for other stakeholders, including communities and ecosystems.

The other choices primarily focus on financial aspects or resources that do not align with the broader understanding of sustainability and the interconnectedness of different types of value creation. Resources owned by the company are more asset-based and do not capture the essence of sustainability. Financial investments attributed to shareholders and market-share assets emphasize monetary value but neglect the social and environmental factors that are foundational to sustainability accounting. Therefore, the emphasis on non-financial capitals highlights the importance of a holistic approach to value creation in the context of sustainability.