Using the Natural Capital Stock Approach for This Report

The approach of this report is based upon the concept of natural capital stock because of the multi-functional role of natural capital, its relevance to an environmental 'baseline' and due to the inter-dependence between natural capital and other forms of capital as described above. The interaction of anthropogenic activities with the natural capital, in a Hong Kong context, accounts for the status of the current environmental baseline in the territory. These interactions are addressed in the report in the form of the various human and economic pressures which are acting upon the environmental resource, as well as the social and heritage conditions which contribute to the capital stock.

Although a formal definition has not been adopted for the SUSDEV 21 study, the natural capital stock in Hong Kong has been based upon eight discrete elements which in total can be identified as comprising the natural capital stock. The definitions of these elements of the natural capital stock concept are presented in Box 2.1b overleaf. These elements have been used as the basis for the approach to this baseline environmental report, which is further discussed in Section 2.2.