The GDP (gross domestic product) was put in place to
measure a country's economic health and was adopted in 1944. The GDP is calculated by these factors GDP = Consumer spending + Government spending + Capital
expenditures + (Exports – Imports). This equation is missing one significant
variable, Natural Capital. Every product accounted for in this equation came
from some form of natural resource, and the world is not made up of limitless
natural resources. The idea that the natural world is considered a resource
has been around for a long time in the Native American Culture. In fact, this passage
of "The Rainbow Prophecy" may describe the current state of the world "One
day… There will come a time when the Earth is being ravaged and polluted, the
forest is being destroyed, the birds will fall from the air, the waters will be
blackened, the fish being poisoned in the streams, and the trees will no
longer be, mankind as we would know it would all but cease to exist." Businesses cannot
operate any longer without accounting for all inputs and outputs. In addition to these accounting measures, a general
reporting of these principles, the KPI (Key Performance Indicators) specific sustainable principles include a quantities measurement, comparability, and common descriptive
language. They should measure the emissions to the air, the water, the land, and the number of resources used. Considering all of the
above factors, it is an opportunity to spark innovation, creativity, and new avenues
of prosperity. The new competitive edge in business will be found in
Environmental Management Systems. A company can do this by finding the
appropriate classification for their company, assessing direct KPIs associated
with that company, setting indirect KPIs for that company to measure, and reporting
on the KPIs.
