Clement Ong

1. Introduction

Accounting for Social and Environmental Sustainability: A Multi-Capital Approach (2025), edited by Delphine Gibassier, calls for a major change in how companies view and record their roles in the natural and social environment. Gibassier and the contributors argue that current sustainability accounting fails to prevent ecological decline. This is because it values incremental efficiency over absolute scientific limits. The text states that today’s organisations must look beyond reducing local impacts. They need to assess their roles in solving or worsening global challenges (Gibassier, 2025, p. 2). The book’s main contribution is the LIFTS model (Limits and Foundations Towards Sustainability), which connects organisational activities to clear planetary and social budgets.

2. The Conceptual Foundation and Urgency

Gibassier shows urgency by using Anthropocene science as a base. The authors state that human activities have moved the Earth system away from the stable Holocene epoch. This has caused breaches in several critical systems. The text’s data show that six of nine planetary boundaries have already been exceeded. These include climate change, biodiversity loss, and nitrogen flows (Gibassier, 2025, p. 33). Such pressure means we must shift from weak to strong sustainability. Weak sustainability allows capital types to be interchangeable. The authors push for strong sustainability, where natural and social capital cannot be replaced or measured only by financials. Gibassier argues that traditional financial accounts now cover only a small share of the information needed to judge a firm’s true ecological solvency.

3. Strategic Frameworks for Multi-Capital Accounting

The text examines several frameworks for managing multiple capitals. It clearly moves away from value-based models preferred by investors. The main framework is the LIFTS model, which uses Kate Raworth’s Doughnut Economics to define safe and just business spaces. This model sets an environmental ceiling based on planetary limits. It also sets a social floor built on human rights and foundations (Gibassier, 2025, p. 2).

The authors review the CARE-TDL model (Comprehensive Accounting in Respect of Ecology) in the first chapter. This framework treats natural and human capital as liabilities or debts. Companies have a duty to preserve these, not exploit them. It introduces a triple depreciation line so these capitals are kept up along with financial capital (Gibassier, 2025, p. 11). The authors compare this approach with the Value Balancing Alliance (VBA)’s value-based model. They argue that while the VBA focuses on shareholder value, multi-capital accounting should instead protect the capitals themselves (Gibassier, 2025, p. 6).

4. Operational Strategies and Implementation

Gibassier says true sustainability needs a full accounting overhaul. Organisations gain an advantage if they show both ecological sustainability and social responsibility. The LIFTS project uses three structured stages. First, set objectives and identify key planetary and social limits for the organisation. Next, add physical data like tonnes of carbon dioxide or cubic meters of water directly into the accounts (Gibassier, 2025, p. 138). The last stage compares real impacts to planetary budgets in summary statements. Analytical ledgers are recommended to track capital depreciation across social and environmental areas. This method helps managers see environmental maintenance as a real financial and ethical duty, not just an external cost.

5. Practical Tools: Measurement and Monitoring

To support a rigorous transition to a multi-capital model, Gibassier introduces a range of measurement and quality tools that go beyond conventional reporting standards. The book provides technical guidance for translating global boundaries, such as freshwater use or land system change, into local and organisational indicators (Gibassier, 2025, p. 45). For social foundations, organisations use LIFTS social indicators to monitor impacts on health, education, and social equity. These are classified as social debts if the organisation fails to provide a living wage or safe working conditions (Gibassier, 2025, p. 74). A significant portion of the text addresses the redesign of information systems, explaining how existing Enterprise Resource Planning (ERP) systems can be adapted to incorporate non-financial data. This integration embeds sustainability within every business transaction, rather than treating it as an adjunct to financial reporting (Gibassier, 2025, p. 174).

6. Limitations of the Work

Gibassier and her team identify several significant limitations that practitioners should consider when implementing a multi-capital approach. The authors note that, although most of an organisation’s impact occurs within the value chain, data collection remains a substantial challenge. Managing Scope 3 debts across global suppliers is described as the most difficult aspect of the walk the talk philosophy (Gibassier, 2025, p. 7). The authors also observe that different methods for allocating global budgets to individual firms can produce divergent outcomes. For instance, an egalitarian allocation may benefit certain industries while imposing greater burdens on others (Gibassier, 2025, p. 53). The reliability of results depends heavily on Life Cycle Assessment (LCA) databases, which may contain outdated or generalised data, introducing considerable uncertainty into final accounts. Finally, the authors criticise the International Integrated Reporting Council (IIRC) framework for lacking specific performance topics or clear metrics, which they argue leads to inconsistent comparisons among companies (Gibassier, 2025, p. 73).

7. Conclusion and Synthesis