Natural capitalism

Submitted by Johannes Schott on Thu, 06/04/2009 - 12:23

Definition:

Natural Capitalism is an argument, built on a series of case studies, for the possibility of a shift in industrial thinking and management that the authors believe could dramatically increase the effective value of the natural resources that we consume. It comes from an engineering point of view and aims to convince business people and politicians that action can be taken to mitigate ecological crises in a way that is also compatible with economic realities.

For service design the key chapter of Natural Capitalism is chapter 7, Muda, Service and Flow, which outlines an argument for a customer pull approach to industry. The authors believe that by designing around the customer’s needs we can reduce the waste that is inherent in a product-orientated economy. It is in a product manufacturer’s interest to sell as many units as possible. A service provider, on the other hand, is paid for the ongoing receipt of some form of value, from warmth to entertainment, and is interested in getting the best return on investment from all materials involved in delivering the service. “This supports Natural Capitalism’s goal of protecting vital ecosystem services.” (Hawken, Lovins, Lovins 2000)

As the authors hint in this last sentence, what sounds like leading edge management theory also connects with the deeper intentions of Natural Capitalism. If services can be understood as more in tune with the cyclical systems of Gaia; and if by describing earth systems as warming services or fresh water services in an way that is easily grasped, we can begin to make a conceptual step forward from the problematic understanding of natural resources as ‘products’ like oil or water there to be consumed. Then services become a way of describing a change in our understanding and in our vocabulary that can resonate in the mainstream whilst moving us forward.

Natural Capitalism is pragmatic, rational and measured believing that better processes and technologies can create huge improvements. The frustration with Natural Capitalism is that it doesn’t address some of the underlying systemic issues within capitalism that are felt to be responsible for our destructive actions and is therefore potentially tinkering at the margins.

Source: Livework Studio Ltd

References

Hawken Paul, Lovins Amory B, Lovins L Hunter, Natural Capitalism; The Next Industrial Revolution, Earthscan Publications Ltd, London 2000 ISBN 1844071707

Links:

Natural Capitalism click here

KB Glossary

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