Definition of Natural capital:
Indispensable resources and benefits, essential for human survival and economic activity, provided by the ecosystem. Natural capital is commonly divided into (1) renewable resources (agricultural crops, vegetation, wild life) and (2) non-renewable resources (fossil fuels and mineral deposits).
Natural capital is a type of commodity capital that includes natural resources mined, stored, or produced by a company. Natural capital trades alongside agricultural capital on futures exchanges. Both types of commodities require similar operational procedures for writing options or futures on public market exchanges. Both types of capital also comprise a section of a company’s balance sheet assets.
Natural capital is a reference to the inventory of natural resources held by companies, such as water, gold, natural gas, silver, or oil. Like all commodity resources, these natural capital commodities must be certificated in order for the company to write a derivative on the natural capital for sale in the futures market. Natural capital must also be managed on a company’s financial statements which requires natural capital accounting.
How to use Natural capital in a sentence?
- Some products are things that people cant live without and a natural capital like that will always have its place in the market.
- Natural capital is the inventory of natural resources held by a company.
- Natural capital must be certified before a derivative contract, like a future, can be written on it.
- Natural capital is listed on a company's balance sheet since it is an asset.
- There was a lot of good natural capital to check out and that made me happy cause it was important to me and everyone else.
- The natural capital of Africa is so great that it makes for an exciting investment opportunity for those able to invest there.
Meaning of Natural capital & Natural capital Definition