Our value creation model

Our value creation model
CAPITALS

The International <IR> Framework published by the International Integrated Reporting Council (IIRC) (December 2013) positions the importance of providing insight into how
an organisation’s strategy relates to its ability to create value and to its use of and effect on the six capitals.

The following section unpacks how we consider the resources and relationships used and affected by PPC, and how we interact with our external environment to create value against the six capitals as defined by the IIRC.

  HUMAN CAPITAL
 

People’s competencies, capabilities and experience, and their motivations to innovate, including their:

  • alignment with and support for an organisation’s governance framework, risk management approach, and ethical values
  • ability to understand, develop and implement an organisation’s strategy
  • loyalties and motivations for improving processes, goods and services, including their ability to lead, manage and collaborate
  MANUFACTURED CAPITAL
 

Manufactured physical objects (as distinct from natural physical objects) that are available to an organisation for use in the production of goods or the provision of services, including:

  • buildings
  • equipment
  • infrastructure (such as roads, ports, bridges, and waste and water treatment plants)
  FINANCIAL CAPITAL
 

The pool of funds that is:

  • available to an organisation for use in the production of goods or the provision of services
  • obtained through financing, such as debt, equity or grants, or generated through operations or investments
  NATURAL CAPITAL
 

All renewable and non-renewable environmental resources and processes that provide goods or services that support the past, current or future prosperity of an organisation. It includes:

  • air, water, land, minerals and forests
  • biodiversity and eco-system health
  SOCIAL AND RELATIONSHIP CAPITAL
 

The institutions and the relationships within and between communities, groups of stakeholders and other networks, and the ability to share information to enhance individual and collective well-being. Social and relationship capital includes:

  • shared norms, and common values and behaviours
  • key stakeholder relationships, and the trust and willingness to engage that an organisation has developed and strives to build and protect with external stakeholders
  • intangibles associated with the brand and reputation that an organisation has developed
  • an organisation’s social licence to operate
  INTELLECTUAL CAPITAL
 

Organisational, knowledge-based intangibles, including:

  • intellectual property, such as patents, copyrights, software, rights and licences
  • “organisational capital” such as tacit knowledge, systems, procedures and protocols