This document discusses moving from an economy focused on growth to one focused on wellbeing. It notes that continued growth is unsustainable due to planetary limits being reached and flatlining wellbeing in developed nations. Political leaders, businesses, and economists are increasingly agreeing on limits to growth and the need to define prosperity through wellbeing rather than growth. Models show zero growth is possible while maintaining wellbeing, employment, and environmental sustainability.

1. On a Wellness Economy Jules Peck Abundancy Partners

2. Flourishing EnterpriseLife, liberty and the pursuit of happiness - the business implications and innovation opportunities of a ‘yes we can’ wellbeing perspectiveJules Peck SB’11 2

3. Section 1 CONTEXT - PLANET AND WELLBEING MELTDOWN

5. We are at or near the point of no return in terms of unstoppable runaway climate chaos and planetary limits.4

6. Its not just the planet but a wellbeing failure Despite exponential economic growth, in the developed world, we suffer from flatlining wellbeing and billions in the developing world live below subsistence levels 5 Note - This presentation refers mainly to a developed world context, a series of supplementary slides are available on the developing world implications of Flourish.

7. “We spend money we don’t have, on things we don’t need, to make impressions that don’t last, on people we don’t care about.” 6

9. Costa Rica has a near-Scandinavian economic welfare model, universal adult literacy, no military costs, a strong ‘core’ economy of social networks, 99% renewable power, carbon tax and low deforestation. 7

10. Section 2 CONTEXT - RISING CONSENSUS OF THE LIMITS TO GROWTH

11. Political perspectives on limits to growth “Decoupling is a myth and as the economy is currently organized, we are simply destroying the planet. Energy and resource efficiency is seen as the solution. But it is like with all the productivity increases, the result will be more economic growth which will result in increased demand for resources.” Anders Wijkman, Vice-Chairman of Sweden’s Tällberg Foundation and a former MEP. “The traditional definition of growth, which measures prosperity solely in terms of the increase in the gross domestic product, is a dead-end solution. We can see where it's taking us. This global economic model is hurting our planet.” Winfried Kretschmann, German State Governor of Baden-Württemberg

12. Decoupling – the ultimate challenge Intensityand scale are both as important – both need to fall for absolute decoupling 10

13. Crucial slide - The scale of the challenge If by 2050 9bn incomes are at EU plus 2%p.a then to stay below 450ppm, carbon intensity needs to fall by 11%pafrom current 770gco2/$ to 6gco2/$ in 2050. This is a 130 fold improvement. BUT - 1990-2007 carbon intensities (T) fell only 0.7%pa 11 T.Jackson, Prosperity Without Growth

15. 75% of the public in 10 countries agreed according to Globescan. ABBC poll found that 81% of the public want Government to focus on ‘the greatest happiness’ not ‘the greatest wealth’.There is a rising questioning of growth

16. 2010-2011Limits to Growth literature 13

17. Section 3 UNECONOMIC GROWTH - THE END OF GROWTH IS IN ANY CASE IMMINENT

19. The depletion of crucial resources such as fossil fuels, water, food, metals and minerals;

20. The proliferation of environmental impacts arising from both the extraction and use of resources leading to snowballing costs from both these impacts themselves and from efforts to avert them and clean them up;

21. Financial disruptions due to the inability of our existing monetary, banking, and investment systems to adjust to both resource scarcity and soaring environmental costs—and their inability (in the context of a shrinking economy) to service the enormous piles of government and private debt that have been generated over the past couple of decades.

22. Deepwater Horizon is one good Black Swan example of the confluence of all three of these coming together. Oil depletion pushed BP into areas that are just not sensible (and are very expensive) for drilling. The knock-on effect of rising insurance costs and premiums and BP’s shares falling has had serious effects on already delicate UK pensions. 15

24. “Conventional oil production peaked in 2006” (IEA Chief Economist).

25. Water;

26. “by 2025, about 1.8 billion people will be living in countries or regions with absolute water scarcity, and two-thirds of the world population could be under conditions of water stress—the threshold for meeting the water requirements for agriculture, industry, domestic purposes, energy and the environment. . . .” UN’s Global Environment Outlook 4 (2007).

27. In the U.S., the Colorado River—which supplies water to cities such as Phoenix, Tucson, Los Angeles, Las Vegas, and San Diego, as well as providing most of the irrigation water for the Southwest—could be functionally dry within the decade if current trends continue.

28. Food;

29. “Food prices are not only rising, but they are also volatile and will continue this way into the future,” Ngozi Okonjo-Iweala. World Bank MD.

30. “The evidence does, in fact, suggest that what we’re getting now is a first taste of the disruption, economic and political, that we’ll face in a warming world. And given our failure to act on greenhouse gases, there will be much more, and much worse, to come.” Nobel winner Paul Krugman on rising food prices in 2011.

31. World grain production per capita peaked in 1984 at 342 kg annually. For many years production has not met demand, so the gap has been filled by dipping into carryover stocks; currently, less than two months’ supply remains as a buffer. (Wall Street Journal Oct 2010.)

32. Metals;

33. “Virgin stocks of several metals appear inadequate to sustain the modern ‘developed world’ quality of life for all of Earth’s people under contemporary technology.” Tom Graedel at Yale University.16

35. The New Economics Foundation are currently launching their Great Transition program which will develop a macro-economic model which seeks to illustrate that we do not need growth in the developed world.17

36. Section 4The shift from a ‘growth as prosperity’ to a ‘wellbeing as prosperity’ paradigm. 18

37. Wellbeing is shifting to the heart of an updated definition of economics “Economics is a social science concerned with the best way to allocate plentiful resources to maximize a society’s well-being and mental health.” Professor Andrew Oswald

38. Progressive business agrees “if the world economy is to continue to grow and flourish, it will have to learn to live within rational financial and ecological constraints.” Paul Polman CEO, Unilever 2011 “Imagining a new, sustainable capitalism, we need to radically redesign our business models with less emphasis on growth and more on wellbeing.” Ian Cheshire, CEO, Kingfisher B&Q “More happiness with less stuff, all made sustainably….the equation for a sustainable future”. Ray Anderson Chairman, Interface. 20

39. Even the financial sector is starting to agree…. “I believe that we are in the midst of one of the giant inflection points in economic history. This is likely the beginning of the end for the heroic growth spurt in population and wealth caused by what I think of as the Hydrocarbon Revolution rather than the Industrial Revolution. The fact is that no compound growth is sustainable. If we maintain our desperate focus on growth, we will run out of everything and crash. We must substitute qualitative growth for quantitative growth.” Jeremy Grantham, leading financier and founder of the $107bn GMO Asset Management Fund 21

41. “Creating a country which feels like a community, where our relationships are better and the glue that binds people together is stronger. Where we actually think about people's well-being when we make decisions. These are the things I'm most passionate about in public life. And developing new independent measures of well-being so that by the end of the year, we will be the first developed country in the world that is able rigorously to measure progress on more than just GDP.” Prime Minister David Cameron, May 2011

42. “Governments must stop making a fetish of GDP and move on to better measures of prosperity. Measures of wellbeing should be put in a context of sustainability” Joseph Stiglitz, Nobel Laureate Economist, adviser to President Sarkozy and ex Chief Economist to World Bank

43. “Citizens rightly consider that the main purpose of political action is to improve their present and future wellbeing.” Didier Blanchet, Chief Economist, French Office for National Statistics.

44. “Subjective wellbeing is a valid construct that can be measured reliably. It should be possible to influence this via policy.” UK Office for National Statistics, December 2010.

45. The UK, EU, OECD, World Bank and UN are all committed to rethinking how we measure profess ‘with the ultimate goal of improving policy making, democracy and citizen’s wellbeing.”22

46. 23 Society’s expectations are changing fast G120. Which of the following two positions comes closest to your view? A corporation should focus only on creating shareholder value, even if the way in which they create shareholder value conflicts with societal interests OR corporations need to create shareholder value in a way that aligns with society’s interests, even if that means sacrificing shareholder value. Informed Publics ages 25-64 in 23 Countries

47. A new vision – economy level and corporate level transformation Dynamic Equilibrium economics – macro-economy level Flourishing Enterprise – corporate level 24

48. Section 5A deep-dive into wellbeing 25

50. More than just passive and emotional experiences and ‘happiness’, encompassing also more active aspects like resilience, vitality, sense of purpose and relationships with others.

51. Its about peoples’ ability to develop their potential, work productively and creatively, build strong and positive relationships with others, and contribute to their community.26

53. 40% activities and outlook:

55. Being physically active

56. Taking notice and being engaged, living in the moment and in ‘flow’, connecting with ‘self’

57. Keeping learning and having life goals

58. Giving back and being involved– feeling you are contributing28

59. Section 6What does this mean for business and how can they respond? Flourishing Enterprise - a new strategic compass 29

60. Our vision - Flourishing Enterprise – the new strategic compass The new strategic compass of Flourishing Enterprise - maximising the wellbeing delivered by products, services and brands whilst minimising planetary inputs/impacts to become a Flourishing Enterprise. 30 Flourishing Enterprise Planet In Wellbeing Out

62. A Flourishing Enterprise will only be able to truly deliver the above within a Dynamic Equilibrium economy. Companies have a key responsibility to pursue progressive public policy advocacy to help pressure Governments to deliver such a DEe.

63. A Flourishing Enterprisewill treat its customers as citizens not consumers and will seek to profit from services delivering to real needs not created wants whilst supporting capabilities for flourishing in citizens and society by promoting intrinsic not extrinsic values.31

66. Flourishis a strategic innovation tool which uses the twin lenses of wellbeing and planet to provide insights into how companies support or detract customer and societal flourishing

67. Flourish helps companies map, measure, manage and maximize units of wellbeing services delivery per unit planet input.

68. Flourish facilitates breakthrough innovation in products, services and new business models. 33

69. 34 Thank you jules@abundancypartners.com