Something I've learned recently in my Sustainability and Bioeconomy Master's course is that true sustainability requires us to go beyond the bottom line. The Five Capitals Framework offers a holistic approach to assessing value, measuring success not only by financial gain but also by our impact on nature, people, and society. It encourages businesses to redefine performance with a multi-dimensional lens.
What Are the Five Capitals?
Natural Capital – Ecosystems, biodiversity, and resources that support life and industry.
Social Capital – Relationships, community trust, and networks.
Human Capital – People’s health, skills, and capabilities.
Manufactured Capital – Infrastructure, machines, tools, and buildings.
Financial Capital – Investments, savings, and assets.
Applying the Framework in Business
Integrating the Five Capitals means:
Conducting sustainability assessments that include non-financial impacts.
Aligning business strategy with long-term environmental and social value.
Building resilience by protecting the “capitals” a company relies on.
This framework helps avoid the trap of narrow, short-term thinking. By managing capital holistically, businesses are more likely to foster trust, reduce systemic risks, and seize innovation opportunities.
Want to learn how this connects to business models? Read "The 9 Sustainable Business Model Archetypes Every Leader Should Know".
– Morena
