How does the International Integrated Reporting Council (IIRC) define Manufactured Capital?

The definition of Manufactured Capital according to the International Integrated Reporting Council (IIRC) is indeed focused on the tangible, physical objects that are utilized in the production of goods and services. This includes facilities, machinery, tools, and other equipment that an organization uses to create its offerings.

Manufactured Capital represents the resources that an organization has developed through investment and innovation, which enable it to create value for its stakeholders. By highlighting this aspect, the IIRC emphasizes the importance of physical and technological resources in the operational capabilities of an organization. This concept is central to understanding how businesses leverage their infrastructure and equipment in the manufacturing or provision of services.

In contrast to the other options, which describe intangible assets, financial investments, or human resources, the definition of Manufactured Capital is distinctly focused on the concrete and tangible elements that contribute directly to production processes. These distinctions are crucial in Integrated Reporting, where organizations aim to provide a comprehensive overview of how various forms of capital are managed and the value they create over time.