Olam among first in Singapore market to report detailed natural capital accounts

BURIED in Olam Group’s 2021 annual report was a profit and loss (P&L) statement of an unusual kind – one attempting to take stock of all the shadow costs “paid” by society and the environment to sustain business activities at the food and agri-business company.

It appears to be one of the first, if not the first, Singapore-listed company to have released such a detailed account of “natural capital” that went as far as computing a balance sheet. The practice is not new, but it is still rare, although market players expect to see more examples in the coming years.

Companies that conduct such an exercise are in all likelihood already calibrating their business activities to mitigate their impacts and dependencies. For example, companies can use the analysis to explore different types of land use or markets, decide on changes to procurement sources, or invest in landscape restoration.