How does the IIRC define Natural Capital?

The definition of Natural Capital according to the International Integrated Reporting Council (IIRC) encompasses all environmental stocks that provide goods and services is accurate because it captures the essence of what Natural Capital represents. Natural Capital includes natural resources like air, water, soil, and ecosystems, which are essential for sustaining life and providing valuable goods and services to communities and industries.

This broad definition emphasizes the importance of the environment as a critical component of the economic system, acknowledging that it is an asset that contributes to the well-being of society. By recognizing all environmental stocks, the IIRC advocates for a holistic view that integrates environmental factors into financial reporting, enabling organizations to better assess their impact on and dependence on natural ecosystems.

The other options do not accurately reflect the comprehensive nature of Natural Capital. For instance, focusing solely on financial assets or renewable resources does not encompass the entirety of environmental stocks. Additionally, limiting the definition to assets related to corporate responsibilities excludes the wider context of how these environmental elements interact with and support all aspects of life and not just corporate interests.