7. Natural Capitalism
Driving forces – Resource Limitation
Biosphere II (1991) –
$200 million fail to provide 8 scientists in a dome
an ecosystem with adequate air, water, food
The value of natural resources, when missing,
far exceeds their allocated market value
8. Natural Capitalism
Driving forces – Resource Limitation
“The new limits to prosperity are natural systems:
not boats, but fisheries;
not sawmills, but forests.”
In Israel:
not water pipes, but water;
not cars & roads, but available land.
9. Natural Capitalism
Theory – the Problem
“Natural Capital as a Limiting Factor”
Natural Capitalism: the next Industrial Revolution
(1999) Amory Lovins, Hunter Lovins and Paul Hawken
11. Natural Capitalism
Theory - Solutions
Dramatically increase productivity & efficient
use of natural resources
Shift to biologically-inspired production
models
Move to a solutions-based business model
Reinvest in natural capital
12. Natural Capitalism
Natural Capitalism Toolbox
1. Buy time by radically increasing resource
productivity (“sustainability”)
2. Design for environment: biomimicry, closed
loops, no waste, no toxicity
3. Replace products with services
4. Manage for restoration of human and
natural capital
13. Natural Capitalism
Radical Resource Efficiency Improvement
Incredible savings from re-thinking your
assumptions:
– Bus routes
– Pipe layout
– Pollution control
– Waste-heat reuse in plastics industry
Remember – There is no Waste
– only poorly used Resources
14. Natural Capitalism
Using Resource Efficiency Improvement
Methodology
– Detail Inputs (energy & material)
– Understand Imbedded Inputs
– Detail Outputs
– Check your balance
– identify significant imbalances.
What is their cost?
– Examine alternative
procedures/materials/technologies/paths
15. Natural Capitalism
Biomimicry
Learn from nature – it has more
experience than the rest of us!
Close the loop – make the waste of
one process the raw material for
another
21. Natural Capitalism
Using Biomimicry
Methodology
– Close the Loop – Look upstream,
downstream, and “sidestream”
– Material Selection – look for
environmentally friendly materials
22. Natural Capitalism
Replace Products with Services
Sell Services instead of the products
– It’s what people want anyway!
Pay-per-use, lease
– Computers – computing services
– Carpets – attractive/protective floor coverings
– Stereos – beautiful sound
– Lighting – useful/beautiful light
Manufacturers – design for this to reap the
benefits (modularize your product)
23. Natural Capitalism
Replace Products with Services
Interface Carpet Tiles
Xerox recycling programs
Cradle to Cradle book
Auto Directive in EU
24. Natural Capitalism
Reinvest in Natural Capital
Most Natural Capital is taken for granted –
we give them an economic value of zero.
Value the services performed in nature
– Clean air
– Flood protection
– Clean water (and enough of it)
– Land protection
Maintain the equilibrium
(often, there is no $$ value that makes sense)
28. Natural Capitalism
Simulation – Closing the Loop
The Setting – a local community with:
1. Restaurant/fast-food chain
2. High School
3. Car dealership
4. Your company (choose)
29. Natural Capitalism
Simulation – Closing the Loop
Ask yourself and Plan:
– What are the inputs of each franchise?
– What are the outputs?
– Which inputs could be brought from
elsewhere?
– Which waste outputs could be diverted to
resources?