Transcript An Overview of the Framework

An Overview of the Framework
Jay Moynihan UW-Extension Shawano County
(715) 526-6136 [email protected]
1. The Problem: A need for an over - all framework.
2. The origin of The Natural Step.
3. What The Natural Step is.
4. The Science.
5. The Conditions.
6. A business example of implementation.
7. Method
8. References
Culture
Economy
Natural
Capital &
Services
Adapted from a diagram by Jerry Hembd, UW-Extension Northern Center for Community Economic Development.
“Market prices are the signals by which the market regulates
itself. … The economic system lacks a well developed
mechanism for sensing the condition of the environment in
which it is embedded.”
Robert U. Ayres, Information, Entropy, and Progress, page xvii, (1994)
“Market prices are the signals by which the market regulates itself. … The
economic system lacks a well developed mechanism for sensing the condition of
the environment in which it is embedded.”
Robert U. Ayres, Information, Entropy, and Progress, page xvii, (1994)
• In many ways, “sustainability” is a general word for the
developing effort to remedy the flaw Ayres pointed out.
• Sustainability is an attempt to address “market failure”, i.e.,
the term used by economists for the condition where the
allocation of goods and services by a market is not efficient.
• In this case, a situation where significant costs are
externalized to health and natural capital goods and
services, without repayment or replenishment, is not
sustainable.
Example:
“The science tells us that GHG emissions are
an externality; in other words, our emissions
affect the lives of others. When people do not
pay for the consequences of their actions we
have market failure. This is the greatest
market failure the world has seen. It is an
externality that goes beyond those of ordinary
congestion or pollution, although many of the
same economic principles apply for its
analysis.
This externality is different in 4 key ways that
shape the whole policy story of a rational
response. It is: global; long term; involves
risks and uncertainties; and potentially
involves major and irreversible change.”
Defining Sustainability:
It has many definitions now.
BUT, the definitions of it that have rigor have
shared characteristics.
Defining Sustainability:
• It is a work in progress
• It involves a systemic, multi-linear view
• The economic shares characteristics embedded in and part
of the cultural realm.
• Both are dependent upon natural capital and services for
their very existence.
Defining Sustainability:
• The solution search space addresses not only now. It also
requires analysis of the effects of decisions on future
generations and conditions, and not limiting future options
to adapt to new conditions.
• The understanding that energy is not only the power to do
work. Energy is also, through production and process
“embedded” in what we make.
• Therefore, energy efficiency must address both the
conservation and use of power, and the manner of
production, recycling, and re-use of that material and
energy.
One of the definitions that meets these criteria, and in addition,
provides a framework for application to real problems, is
Beginnings…
Karl-Henrik Robèrt, M.D., Ph.D was one
of Sweden’s leading cancer researchers.
Robèrt came to realize that there are
basic realities of the environmental
problems of the planet that are true for
everyone, no matter their political views.
Certain facts can be established, based
on current knowledge. He realized that if
people could agree upon something, it
might result in action.
http://www.context.org/ICLIB/IC28/Robert.htm
He wrote a paper and sent it to top international
scientists, seeking such a consensus.
He asked them to correct the errors in his paper.
Twenty-two drafts later he had consensus.
Robèrt consulted municipalities, businesses,
government departments, environmental
organizations, and the arts community.
He got the support of the King of Sweden.
The Natural Step was launched with attendant
television coverage and distribution of educational
material to every school and household in
Sweden.
http://www.context.org/ICLIB/IC28/Robert.htm
•In 1989, Robert started The Natural Step
as a non-stock corporation in Sweden.
•It spread quickly in Swedish society,
including local governments and
businesses.
Note:
A “municipality” in
Sweden is the local
government, and does
not mean “city”.
There are 290 of them,
grouped into 21 counties.
The majority of tax
money in the country is
controlled at the
municipality level.
• A local municipality of 5,000,
Övertorneå, in rural Northern Sweden
adopted it as part of an ongoing economic
development planning process. This has
spread to over 60 other municipalities in
Sweden. More on this later…
• In early 1990’s it starts to spread in
Europe and Japan primarily via large
corporations.
• In 1993, American entrepreneur Paul Hawken
(founder of Smith & Hawken, among other
businesses), introduced the United States
audience to The Natural Step in his book, The
Ecology of Commerce.
• A scientific conference at the Wingspread
Conference Center in Wisconsin endorsed it
in 1997.
• Hawken and others worked with a group of
large corporations (Monsanto, Interface, GE,
Toyota, Nike and others).
What The Natural Step is NOT?
It is not:
• A government program
• A regulatory measure
• A thing that tells you exactly what to do
• Only for large corporations
• A new running shoe, laxative, or diet
The Natural Step is:
• Based on established science
• An incremental, “do what you can handle”
approach
• Scalable
What is The Natural Step?
• TNS uses your creativity and intellectual capital to develop
your own solutions.
• TNS integrates nicely with management models and ideas,
(PBB/PBM, TQM, MBO, 5th Discipline, etc)
• Has a track record on lowering costs, developing new
products and services.
• Has a track record on improving community services and
quality of life.
TNS =
• 5 scientific points
{4 laws, 1 principle}
• That when considered together,
• Results in 4 “System Conditions”.
Assumptions
All mental frameworks embody assumptions.
TNS Assumptions:
• That it is “good” that humans survive for as long as possible.
• That the humans inhabit a planet with a biosphere.
• Methodological Naturalism* (therefore it can operate in any
current philosophical, spiritual, or political context)
* For pragmatic reasons, the problem/solution space only contains what is capable of being sensed and
empirically analyzed, within the “laws of nature”.
TNS: Science
1
Matter and energy cannot be created or destroyed.
1st law of thermodynamics
and the principle of conservation of matter.
Sooner or later, all matter that is introduced into society will be
released into natural systems.
TNS: Science
2
Matter and energy tend to disperse.
(2nd law of thermodynamics)
Entropy
Nature tends from order to disorder in systems, absent an continuing input of energy.
TNS: Science
3
Material quality is characterized
by the concentration and structure of matter.
We never consume energy or matter--only its quality , (the degree
of order within energy and matter), purity and structure.
TNS: Science
4
Net increase in material quality on earth can only be
produced by sun-driven processes.
TNS Scientific Principles
Add together the 4 principles, and you get:
The cyclic principle
Waste must not systematically
accumulate in nature, and
reconstruction of material quality must
be at least as large as its dissipation.
Nothing.
Not doing things in cycles is why we have pollution, toxins in products,
carbon loading, etc.
What is The Natural Step?
From the science and the Cyclic Principle you can derive
Four System Conditions
• The conditions are what describes the key characteristics of
a sustainable society.
• They provide general goals to work towards .
• Progress towards them is determined by you. You
implement your steps as you are able to do so.
Four System Conditions
1
Substances from the Earth's crust must not
systematically increase in the biosphere.
Fossil fuels, metals and other minerals should not be extracted at a faster
pace than their redeposit and reintegration into the Earth's crust, or
otherwise confined to the production cycle.
Four System Conditions
2
Substances produced by society must not
systematically increase in the biosphere.
Substances must not be produced at a faster pace than
they can be broken down and integrated into the cycles of
nature or deposited into the Earth's crust, or otherwise
confined to the production cycle.
Four System Conditions
3
The physical basis for the productivity of nature
must not be systematically deteriorated.
We cannot harvest or manipulate ecosystems in such a way that
productive capacity and diversity systematically diminish.
Four System Conditions
4
Human needs are met world wide.
Human needs must be met fairly
with the most resource efficient methods possible.
But, does not the free play of the market,
individual effort and initiative determine what is
“fair”? That last one sounds a little
well….Swedish to me.
Well….
What I like to call,
The Nixon Corollary
on the 4th System Condition:
Given the historically normal
reaction in humans to a
condition of perceived scarcity,
conflict will interfere with
addressing the first three
system conditions.
Actually phrased in a more earthy manner, by the President
in answer to a rich supporter who questioned his signing
of the first Aid for Families with Dependent Children bill.
A Business Example
Interface, Inc.
World’s largest manufacturer
of modular and tile carpeting
http://www.interfaceinc.com/
Implemented TNS in the mid-1990’s
http://www.interfacesustainability.com/
Often, a necessary first step, is re-conceptualization
We sell:
Affordable Carpeting that
gives our shareholders a
good return on investment
We sell surfaces:
• Comfortable under foot
• Easy to clean
• Nice for the eyes
• Affordable
• Gives our shareholders a
good return on investment
Surfaces:
• Comfortable under foot
Cyclic Principle
• Easy to clean
• Nice for the eyes
• Affordable
• Gives our shareholders a
good return on investment
+
4 Systems
Conditions
New product line:
It is not a product line, it is a SERVICE
Surfaces:
• Comfortable under customer’s feet
• Easy for the customer to clean
• Nice for the customer’s eyes {always looks brand new}
• Healthy for the customer {no out-gassing}
• Affordable for the customer
• Lasts “forever”, as far as the customer is concerned
• Does not get thrown out
• Gives our shareholders a good return on investment
Comfortable under customer’s feet
• Easy for the customer to clean
• Nice for the customer’s eyes {always looks brand new}
• Healthy for the customer {no out-gassing}
• Affordable for the customer
• Lasts “forever”, as far as the customer is concerned
• Does not get thrown out
• Gives our shareholders a good return on investment
Goal: Progress towards living within 4 system conditions & return on investment
Tools
TNS Method
Problem
Carbon Strategy
Energy Efficiency
Full Cost Accounting
Future State:
Life Cycle Analysis
Ecological Design
Industrial Ecology
Biobased Production
Ecological, and Carbon Foot Prints
Green Building
Biomimetics
Indicator design
Progress measured to
determine efficacy of effort
Interface, Inc. has made significant strides towards the
systems conditions, and made money.
They report on their progress, and problems every year.
http://www.interfacesustainability.com/prog.html
Four Questions
Does my decision or this way of doing something:
1. Decrease dependence on raw materials from the earth's
crust?
2. Decrease use of compounds produced by society, that can
accumulate in nature?
3. Increase productivity and biodiversity in nature?
4. Increase the efficiency and fairness with which resources
are used?
TNS Method Overview
Other Tools
Carbon Strategy
Energy Efficiency
•The Funnel
•Backcasting
•ABCD
Full Cost Accounting
+
Life Cycle Analysis
Ecological Design
Industrial Ecology
Bio-based Production
Ecological, and Carbon Foot Prints
Green Building
Biomimetics
Indicator design
TNS Method Overview
Your job is to
make it through
the funnel
TNS Method Overview
Backcasting
• Similar to the idea of Critical Path Method in traditional
project management.
• Forecasting is the process of predicting the future based
on the study of current trends. Backcasting approaches
the challenge of discussing the future from the opposite
direction.
• It is a way of planning in which you start with a
description of a successful outcome, then link to now in
steps to achieve your desired outcome in a strategic way.
TNS Method Overview
ABCD
1. Awareness. Your entire business organization learns TNS
science, principles, and systems approach tools.
2. Baseline Mapping. A situational analysis of your community.
Gap analysis of stocks, flows, critical issues, and
opportunities.
3. Creating A Vision. What does your business look like in a
sustainable society? What are its products, services?
4. Down To Action. Using backcasting, systems thinking, and a
number of other related tools; you lay out implementation and
measure performance and progress towards outcomes.
Resources on TNS
Books
The Natural Step: A Framework by Karl-Henrik Robèrt
The Natural Step Story: Seeding a Quiet Revolution by Karl-Henrik Robèrt
The Natural Step for Business: Wealth, Ecology and the Evolutionary
Corporation by Brian Nattrass & Mary Altomare
The Natural Step for Communities: How Cities and Towns Can Change to
Sustainable Practices
by Sarah James & Torbjörn Lahti
The Ecology of Commerce by Paul Hawken
Natural Capitalism: Creating the Next Industrial Revolution
by Paul Hawken, Amory Lovins & L. Hunter Lovins
Mid-Course Correction: Toward a Sustainable Enterprise: The Interface Model
by Ray Anderson
While TNS is not mentioned anywhere in them, the two best
books I have found for a deeper understanding of the science,
the system conditions, and economics.
2006
1997
On-line Resources:
Extension Eco-Municipality Site:
http://www2.uwsuper.edu/sustainability/Eco-Municipality.htm
Community Sustainability
and The Natural Step tools:
http://www.uwex.edu/ces/cty/winnegago/cnred/TNSresources.html