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From Karl-Henrik Robért, founder of the Natural Step, on flexible fees and strategy.
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Strategic sustainability perspectives from flexible fee logics
1.
Flexible fees from
a strategic sustainability perspective Logics revolving around defined purpose Karl-Henrik Robèrt Blekinge Institute of Technology, Karlskrona Sweden The Natural Step, Stockholm Sweden © 2011 The Natural Step September 2011
2.
Sustainable Development
- A Dynamic Challenge The ’funnel ’of declining potential to sustain human society Systematic decline Forests Agriculture Fisheries Ground water Climate Metals POP’s Eutrophy Hormones Loss of trust Segregation Corruption time Epidemias Poverty ... © 2011 The Natural Step
3.
Profitable Also in
Loneliness Opportunities Resource management Waste management Tax, legislation, insurance, loans New markets Innovation/design Trust Productivity, Transaction costs Brand Stories of meaning Team building time Community … © 2011 The Natural Step
4.
So, what’s the
problem? © 2011 The Natural Step
5.
1. The power
of old paradigm assumptions © 2011 The Natural Step
6.
Cylinder vs Funnel
paradigm An Impact perspective A Systems perspective It is believed that... In reality... ...sustainable development is to fix ...costs move towards infinity so S.D social/ecological damage when the costs is to strategically eradicate the systemic for this are lower than the economic utility errors at the best prize. ...the incetives to undertake measures ...the incentives to undertake measures are mainly based on ethics are ethical and self-beneficial ...competetive edge is lost when ...role models get competetive advantage measures are not launched with and create momentum for international international agreements and policies agreements and policies © 2011 The Natural Step
7.
1. The power
of old paradigm assumptions 2. Reductionism © 2011 The Natural Step
8.
ate
s clim alth ue” ” distru ol cause ” ue effect? he iss use re sc ” n ption or t a reenho the n no he g Cf “Etha g n mi ron out t to -PV r wa e i ol han l nw ter? ba r win Et o Ca Gl “ clea “ “ rming wa or nu G lobal proces s” ural tion is a nat s extinc “Specie or health” “PVC ” en -house gases “Whole list of gre “Electric cars too Reductionism expensive.” “Mankind can not save ev ery other beetle” getting lost in the leaves © 2011 The Natural Step
9.
No unifying framework
Reductionism © 2011 The Natural Step
10.
Unifying framework Structured overview,
like in a clinical conference © 2011 The Natural Step
11.
Backcasting from Principles Principles
for success • Necessary • Enough • General • Concrete • Non-overlapping time © 2011 The Natural Step
12.
Unique deliverables of
such principles • Systematic and strict, yet open ended approach • Trade-offs manageable • System boundaries are set by purpose • Resource potentials calculable • Avoiding unknown problems • Effective cooperation across value chains and stakeholders • Community building • Optimization of bottom line chances © 2011 The Natural Step Copyright © 2004 The Natural Step
13.
Testning i bolag...
© 2011 The Natural Step
14.
Billions earned… “
It was not until at least ten years later we understood how much money Electrolux had saved and earned from applying the framework to foresee changes on the market and in legislation. ” © 2011 The Natural Step
15.
Billions earned… “
As we climb mount Sustainability, with the four sustainability principles at the top, we are doing better than ever on bottom line business. This is not at the cost of social or ecological systems, but at the cost of our competitors who still haven’t got it. ” Ray Andersson President, Founder and CEO, Interface. Inc. Portland US, October 2007, © 2011 The Natural Step
16.
Clinical conference from
value chains to communities and cities… © 2011 The Natural Step
17.
Hundreds of Municipalities/Cities
Hu • Övertorneå • Ottawa • Robertsfors • Saskatoon • Morbegno • Wolfville • Valtellina • Madison • Livigno • Ashland • Dublin • Portsmouth • Whistler • Lawrence Township • North Vancouver • Twin Ports • Canmore • Duluth • Halifax • County of Hawaii • ... time © 2011 The Natural Step
18.
“This simple, science-
and systems- based framework is the best out there. It needs to become part of a new common language, as well understood Ken Melamed worldwide as the rules of soccer”. Mayor Whistler, Canada © 2011 The Natural Step
19.
1. The power
of old paradigm assumptions 2. Reductionism 3. Also with very clever systems thinkers and strategic planners: pace of transition too slow* * Learning curve, scale, market-assumptions etc. © 2011 The Natural Step
20.
Examples of outreach
from proactive corporations – knowledge in combination with pragmatism – • Asking for higher tax • Asking for tougher legislation • Complementary currencies (local, regional, global) Differentiated fees... © 2011 The Natural Step
21.
© 2011 The
Natural Step
22.
Strategic Sustainable Development
and Flexible Fees • The current new-paradigm incompetence amongst our leaders implies an unexploited competitive opportunity also within current economic system. • However, new economic means are needed to increase pace of S.D, and to move latecomers. • No silver bullet, but combined with robust sustainability on the table and a balance between magnitude and timing of prizing, flexible fees offers an elegant pragmatic means for policy making to support strategic sustainable development. • Flexible fees would benefit from: (i) Further exploration of underpinning assumptions e.g. a fairer outline of green taxes. (ii) Exploration of other objectives than those linked to flows e.g. halting encroaching and mismanagement of fertile land and waters, and a "humanization" of the economy. You cannot play chess against one principle of checkmate at a time. (iii) Exploration of the landscape for policy making, and how this could be improved for © 2011 The Natural Step the implementation of flexible fees.
23.
“Would you tell
me, please, which way I ought to go from here?” asked Alice. “That depends a good deal on where you want to get to,” said the cat. “I don’t much care where,” said Alice. “Then it doesn’t matter which way you go,” said the cat. © 2011 The Natural Step
24.
Applying the Framework
in four steps - ABCD planning process The funnel A Understanding sustainability Brainstorm C solutions Vision Mission Vision within Core values sustainability Strategic goals principles Today Baseline analysis B Whereisare we today? Prioritization & action planning What the gap? D • Right direction? • Flexible? • Economic enough? © 2011 The Natural Step
25.
Modelling… from the
Globe down into Drillholes A B C C ... ... B D ... ... ... ... J && m2u3 + m2 rw + && φ = ci u1 − ci u3 + k iu1 − ki u3 ... & & rw Actions © 2011 The Natural Step
26.
© 2011 The
Natural Step
27.
Forecasting: Planning from
trends in rear- view mirror, minus problems (”Cylinder paradigm”) •”Nothing is harmless” •”Little harm as possible” •”X% better than before” •”More science needed” ”Expert-drift” and detachment from leadership © 2011 The Natural Step
28.
Backcasting: Success in
whole system through front screen (Funnel paradigm) • ”These are our objectives…” • ”This is the gap…” • ”We have done this…” • ”We are going to do this…” Leadership from overview (vision), community (shepard) and support (coach) Begin game immidiately Celebrate early wins Gray areas from experience Develop tools as needed (and ask masters students for help) © 2011 The Natural Step
29.
Indicators METAL
IN TOP WEATHERING MINING FOSSIL F (M+F) / W SOIL (W) (M) (F) (MG/KG) (KTON/YEAR) (KTON/YEAR (KTON/YEAR) ) Al 72 000 1 100 000 18 000 34 000 0,047 Fe 26 000 390 000 540 000 34 000 1,5 Ti 2 900 44 000 2 500 1 700 0,095 Cr 54 830 3 800 34 4,6 Cu 25 380 9 000 55 24 Pb 19 290 3 300 85 12 Cd 0,35 5,3 20 3,4 4,4 Hg 0,09 1,4 5,2 10 11 (table from Azar, C., J. Holmberg and K. Lindgren. 1996. Socio-ecological indicators for sustainability. Ecological Economics 18: 89-112, listed in Course Outline: Additional Readings) © 2011 The Natural Step
30.
Put into Clinical
Conference in International Research: Real Change Volume: from 1 to10 M USD in 3 years Not counting education Product-Service Innovation (Sweden) Not counting partners input New Research Alliance launched Business development (Sweden) Eco-efficiency (Finland) Algae biomass (Australia) Energy systems (Sweden) Conflict resolution (Israel) Traffic systems (Sweden) Industrial metal flows (Norway) Rainforest ecosystems (Brazil) Green Science / Chemistry (USA) Water management (Netherlands) © 2011 The Natural Step
31.
• Purpose: To
explore, test and share unifying framework. • International NGO • Role models • Areas of action: – Research – Training – Coaching – Advice © 2011 The Natural Step
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