A new approach to procurement is suggested by the Association for Consultancy and Engineering (ACE). In a report, it argues that value must be considered in a holistic way by taking into account five different types of capital: natural, human, social, manufactured and financial.
Through the sharing of best practice, the report highlights where the industry is already leading the way in the measurement of impact and in developing metrics across the different capitals. It also explores in more detail how the capitals are interconnected and how they relate to wider issues such as government procurement and the Treasury’s ‘Green Book’, as well as the UN social development goals and the Net Zero agenda.
Natalie Cropp, chair of ACE’s sustainability group and sustainability director at Tony Gee, said: “While not providing all of the answers, the five capitals approach provides a clear framework where finding a common language is one of the major hurdles that need to be overcome. This paper does a great job in kickstarting that conversation.”
