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Natural Capital: An Essential Study Guide

Natural Capital is a critical aspect of environmental management, greatly emphasized in PMBOK Guide Seventh Edition.
What is Natural Capital? Natural Capital is the world's stocks of natural assets which include geology, soil, air, water and all living things. These assets provide people with a range of goods and services often referred to as ecosystem services, which make human life possible.
Why is it Important? It's crucial because it forms the basis for all human economic activity. The more we degrade or deplete our natural capital, the less resource we have available for sustainable economic activity in the future.
How does it work? It works by providing resources and services like raw material for production and absorption of waste from human economic activities.
Exam Tips: Answering Questions on Natural Capital

  • Understand the key concept: the natural assets and their role in economic activities.
  • Review the cost of depleting natural capital and the importance of sustainable development.
  • Prepare for questions involving the management and conservation of natural capital in project management.

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Natural Capital practice test

Natural Capital is the world's stock of natural assets which include geology, soil, air, water and all living organisms. Some of these natural assets provide people with free goods and services, often called ecosystem services, which underpin our economy and society. In the context of project management, it involves incorporating the value of these natural resources into decision making. By fully understanding the value that environment provides, project managers can make more informed decisions that reflect the true costs and benefits associated with the project including its potential impacts on the natural capital.

Time: 5 minutes   Questions: 5

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Project Management Professional Preparation Package (2024)

  • Earn 35 PDUs needed for your PMP certification
  • 10928 Superior-grade Project Management Professional practice questions.
  • Accelerated Mastery: Deep dive into critical topics to fast-track your mastery.
  • Unlock Effortless PMP preparation: 5 full exams.
  • 100% Satisfaction Guaranteed: Full refund with no questions if unsatisfied.
  • Bonus: If you upgrade now you get upgraded access to all courses
  • Risk-Free Decision: Start with a 7-day free trial - get premium features at no cost!