The existing standard accounting and economic evaluation systems do not consider positive nor negative impacts or dependencies on natural, social, and human capital. Specifically, the natural capitals biodiversity, climate, soil, and water are critical for the short- and mid-term resilience of food and agricultural systems.
Ignoring these capitals or externalities lead to distorted markets and false accounting. Today when we purchase food, we are in actual fact paying four times from four different wallets. These costs include:
Especially the dependencies of food and farming systems on the natural capitals and related economic risks are becoming increasingly obvious. Therefore, accounting firms, insurance companies, and banks are currently developing approaches to monitor and evaluate these economic risks.
Yet, there is no harmonized standard that would justify and legalize financial incentives linked to the implementation of risk preventing better agricultural practices.
While they have shaken economies and societies to the core, the unprecedented developments taking place on the global front also offer a glimmer of hope that a momentum is building towards healthier, and more sustainable lifestyles. The “grow local” movement driven by Covid-19 lockdowns has tapped into the growing popularity of organic food among health-conscious consumers, and a search for more sustainable livelihoods for farmers.
With these reports we intend to further develop the concept of true cost accounting with regards to human, social, and natural capital for food businesses.
Partners
Initiative coordinated by:
In cooperation with:
Our partners:
Contact
Email: info@tca2f.org
German Office: Buttstrasse 3, 22767, Hamburg
The prices we pay in supermarkets for our food do not inform us about the true costs of food production. The existing standard accounting and economic evaluation systems do not consider positive nor negative impacts or dependencies on natural, social, and human capital. Specifically, the natural capitals biodiversity, climate, soil, and water are critical for the short- and mid-term resilience of food and agricultural systems.
ECONOMIC
HEALTH
Especially the dependencies of food and farming systems on the natural capitals and related economic risks are becoming increasingly obvious. Therefore, accounting firms, insurance companies, and banks are currently developing approaches to monitor and evaluate these economic risks. Yet, there is no harmonized standard that would justify and legalize financial incentives linked to the implementation of risk preventing better agricultural practices.
The prices we pay in supermarkets for our food do not inform us about the true costs of food production. The existing standard accounting and economic evaluation systems do not consider positive nor negative impacts or dependencies on natural, social, and human capital. Specifically, the natural capitals biodiversity, climate, soil, and water are critical for the short- and mid-term resilience of food and agricultural systems.
ECONOMIC
HEALTH
Especially the dependencies of food and farming systems on the natural capitals and related economic risks are becoming increasingly obvious. Therefore, accounting firms, insurance companies, and banks are currently developing approaches to monitor and evaluate these economic risks. Yet, there is no harmonized standard that would justify and legalize financial incentives linked to the implementation of risk preventing better agricultural practices.
Partners
Initiative coordinated by:
In cooperation with:
Our partners:
Email: info@tca2f.org
Address:
German Office
Buttstrasse 3
22767
Hamburg
