To measure our investments in protecting the six capitals, we used a financial tagging tool introduced in 2021. This tool captured our operational costs and investments for each capital. Unlike the previous year, we improved our reporting by considering only the expenses that protected the capitals from potential harm or generated new value. Thus, our ESG investments presented below are not directly comparable to the previous year’s figures.
The manufactured capital received the largest share of our investment allocation at 68.8%, primarily attributed to building acquisition, construction, equipment purchase, and maintenance. Our human capital, which encompasses employee compensation and benefits, skill development, capability building, medical, vaccination, and well-being programs, comprised 23.7% of our total ESG expenses. Meanwhile, social capital, which includes community and investor relations, stakeholder engagement, and collaborations, accounted for 3.7% of the ESG allotment. Our natural capital received 2.2% of the ESG expenses and investments, covering environmental community projects, regulatory compliance, energy efficiency, water and waste management efficiency programs. The remaining 1.6% of ESG expenses and investments went to intellectual capital, which includes intellectual property, IT and cybersecurity solutions, management systems, and product research.
Our approach to ESG integrates it into our design, operations, and cost allocation, underscoring the interdependencies of the capitals within the larger system in which we operate. Each element within this system—nature, people, and business—complements and reinforces the other, reflecting our mission of regeneration. Moving forward, we will continue to preserve or restore the integrity of the parts that are essential to creating and preserving value for our company, stakeholders, and the planet.
