How is manufactured capital defined by the International Integrated Reporting Council (IIRC)?

Manufactured capital, according to the International Integrated Reporting Council (IIRC), refers specifically to the physical objects that are created for the purpose of producing goods and services. This includes buildings, machinery, and equipment that contribute to an organization's operational capacity. These assets are essential for any business as they facilitate the processes necessary to create value and deliver products or services to customers.

The distinction of manufactured capital lies in its tangible nature, as it is differentiated from other forms of capital such as financial, intellectual, or natural capital. Understanding manufactured capital is crucial for assessing how efficiently an organization utilizes these resources to achieve its sustainability objectives and goals. This focus on the physical infrastructure underscores the importance of a reliable and efficient production process in the context of integrated reporting and sustainability assessments.