Sustainable Business (MBA)
Natural Capitalism
The Four Principles of Natural Capitalism:
1. Radically increase the productivity of natural resources
Through fundamental changes in both production design and technology, farsighted companies are developing ways to make natural resources — energy, minerals, water, forests — stretch five, ten, even 100 times further than they do today. The resulting savings in operational costs, capital investment, and time can help natural capitalists implement the other three principles.
2. Shift to biologically inspired production models and materials
Natural capitalism seeks not merely to reduce waste but to eliminate the very concept of waste. In closed-loop production systems, modeled on nature's designs, every output either is returned harmlessly to the ecosystem as a nutrient, like compost, or becomes an input for another manufacturing process. Industrial processes that emulate the benign chemistry of nature reduce dependence on nonrenewable inputs, make possible often phenomenally more efficient production, and can result in elegantly simple products that rival anything man-made.
3. Move to a "service-and-flow" business model
The business model of traditional manufacturing rests on the sale of goods. In the new model, value is instead delivered as a continuous flow of services — such as providing illumination rather than selling light bulbs. This aligns the interests of providers and customers in ways that reward them for resource productivity.
4. Reinvest in natural capital
Capital begets more capital; a company that depletes its own capital is eroding the basis of its future prosperity. Pressures on business to restore, sustain, and expand natural capital are mounting as human needs expand, the costs of deteriorating ecosystems rise, and the environmental awareness of consumers increases. Fortunately, these pressures all create business opportunity.
Natural Capitalism: Creating the Next Industrial Revolution © Paul Hawken, Amory Lovins, and L. Hunter Lovins
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