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Natural Capitalism

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Natural Capitalism

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Natural Capitalism

  1. 1. Natural Capitalism
  2. 2. Natural Capitalism <ul><li>Paul Hawken, Amory Lovins & Hunter Lovins developed the approach </li></ul><ul><li>Aim is to protect the biosphere and improve profits and competitiveness </li></ul><ul><li>Uses simple changes to the way businesses are run: </li></ul><ul><ul><li>advanced techniques for making resources more productive </li></ul></ul><ul><ul><li>increased benefits for shareholders and for future generations. </li></ul></ul>
  3. 3. Natural Capitalism <ul><li>New mind-set & set of values than conventional capitalism. Main assumptions are: </li></ul><ul><ul><li>Environment is “an envelope containing, provisioning & sustaining the entire economy” </li></ul></ul><ul><ul><li>Limiting factor to future economic development is availability & functionality of natural capital, particularly, life-supporting services that have no substitutes & currently no market value </li></ul></ul><ul><ul><li>Loss of natural capital caused by badly designed business systems, population growth and wasteful patterns of consumption </li></ul></ul>
  4. 4. Natural Capitalism <ul><ul><li>Future economic progress can best take place in democratic, market-based systems of production & distribution in which all forms of capital are fully valued </li></ul></ul><ul><ul><li>Keys to beneficial employment of people, money & environment is radial increases in resource productivity </li></ul></ul><ul><ul><li>Human welfare is best served by improving the quality & flow of desired services delivered. </li></ul></ul>
  5. 5. Natural Capitalism <ul><ul><li>Economic & environmental sustainability depends on redressing global inequities of income and material well being </li></ul></ul><ul><ul><li>Best long-term environment for commerce is provided by true democratic systems of governance that are based on needs of people rather than business </li></ul></ul>
  6. 6. Strategies of Natural Capitalism <ul><li>Radical resource productivity </li></ul><ul><li>Biomimicry </li></ul><ul><li>Service and flow economy </li></ul><ul><li>Investing in natural capital </li></ul>
  7. 7. Radical Resource Productivity <ul><li>Using resources more effectively </li></ul><ul><li>Three main benefits </li></ul><ul><ul><li>It slows resource depletion at one end of value chain </li></ul></ul><ul><ul><li>Lowers pollution at the other end </li></ul></ul><ul><ul><li>Provides a basis to increase worldwide employment with meaningful jobs </li></ul></ul><ul><li>Results can be lower costs for business & society – no longer paying for ecosystem and social disruption </li></ul>
  8. 8. Biomimicry <ul><li>Currently the ratio of waste to durable products that constitute material wealth is close to one hundred to one, system is less than 10% efficient </li></ul><ul><li>Reducing or eliminating waste can be accomplished by redesigning industrial systems along biological lines. </li></ul><ul><li>Enables the constant reuse of materials in continuous closed cycles </li></ul><ul><li>Often eliminates toxicity </li></ul>
  9. 9. Biomimicry <ul><li>Spiders make silk as strong as Kevlar but much tougher from digested flies, without needing boiling sulphuric acid & high-temp extruders </li></ul><ul><li>Trees turn sunlight, water and air into cellulose, a sugar stiffer & stronger than nylon, and binds it into wood a natural composite with higher bending strength than concrete or steel </li></ul>
  10. 10. Service and Flow Economy <ul><li>Fundamental change in the relationship between producer & consumer, shift from economy of goods & purchases to one of service & flow </li></ul><ul><li>Needs a new perception of value, a shift from acquisition of goods as a measure of affluence to economy where continuous receipt of quality, utility & performance promotes well-being </li></ul><ul><li>Focuses on relationships that better meet customers’ changing value needs and rewards resource productivity & closed-loop cycles of material use </li></ul>
  11. 11. Investing in Natural Capital <ul><li>Reverses planetary destruction through reinvestments in sustaining, restoring & expanding stocks of natural capital </li></ul><ul><li>Biosphere can produce more abundant ecosystem services and natural resources </li></ul>

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