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.