Perspectives on Green Business ENVS 5150 Brian Milani

Course Overview Focus on overall economic context some attention to practical business problems Postindustrial: the Redefinition of Wealth Sectors & use-value Distinctions between –protection & alternatives –big & small business; corporate & community Importance of values-driven or mission- driven business Relationships within and outside of the firm

What is Sustainability? Bruntland: "…development that meets the needs of the present without compromising the ability of future generations to meet their own needs."

Durability Definition "…refers to the ability of a society, ecosystem, or any such on-going system to continue functioning into the indefinite future without being forced into decline through the exhaustion or overloading of key resources on which that system depends." - Robert Gilman, Context Institute

Wish List definition : "Our vision for the future is of a region characterized by sustainable development, including economic vitality, justice, social cohesion, environmental protection and the sustainable management of natural resources, so as to meet the needs of the present generation without compromising the ability of future generations to meet their needs." -- Committee On Environmental Policy for the Economic Commission For Europe

More Qualitative Sustainable development is a dynamic process which enables all people to realise their potential and improve their quality of life in ways which simultaneously protect and enhance the Earths life support systems. --Forum for the Future (used by Interface)

Postindustrial Most Qualitative: …development focused directly on human and environmental regeneration through both the unleashing of human creative potential, and the benign integration of economic activities within natural systems.

3-Ds of Green Development Dematerialization Detoxification Decentralization

Common Sense Economics Herman Daly Trade Recipes, not Cookies. Increase restrictions on the flow of material goods and physical capital (to minimize transport costs, etc.) Lessen restrictions on the flow of information and culture. note: Globalization does exactly the opposite: via free trade and intellectual property law.

Green as Postindustrial from mechanics to organics from machinery to the landscape culture-based development substitutes intelligence for resources (people-intensive) focus on end-use, or human and environmental need from quantity to quality: redefining wealth

The Green Economy A Historical Transition: …from Quantity to Quality A Question of Potentials …not simply limits Key to Sustainability: Redefining Wealth

Principles of a Green Economy 1.The Primacy of Human Need, Service, Use-value, Intrinsic Value & Quality 2.Following Natural Flows 3.Waste Equals Food 4.Elegance and Multifunctionality 5.Appropriate Scale / Linked Scale 6.Diversity 7.Self-Reliance, Self-Organization, Self-Design 8.Participation & Direct Democracy 9.Human Creativity and Development 10.The Strategic role of the Built-environment, the Landscape & Spatial Design

Human Development in the Green Economy Production: human creativity the key Consumption: end-use Direct targeting of human need = massive resource savings Regulation: participation at all levels.

Labour & Resource Relationship Industrial economy: resource-intensive. labour productivity: Substitutes resources for labour. Green Economy: people-intensive / resource-saving. Substitutes human creativity for resources

The Centrality of the Landscape The industrial age replaced the natural processes of the landscape with the global machine…while regenerative design seeks now to replace the machine with landscape. …John Tillman Lyle

Industrialism: The Divided Economy Invisible Visible Use-value Exchange-value Consumption Production People Things Unpaid Paid Women Men Informal Formal Private Public

Invisible Economy (1) Total Productive System of an Industrial Society (layer cake with icing) GNP-Monetized ½ of Cake Top two layers Non-Monetized Productive ½ of Cake Lower two layers GNP Private Sector Rests on GNP Public Sector Rests on Social Cooperative Love Economy Rests on Natures Layer Private Sector PublicSector underground economy Love Economy Mother Nature All rights reserved.Copyright© 1982 Hazel Henderson 2

Invisible Economy (2)

Basics of a Green Economy 1.The Service Economy Hot Showers and Cold Beer Nutrition, Illumination, Entertainment, Access, Shelter, Community, etc. 2. The Lake Economy Flowing with nature, Every output an input, Closed-loop organization, Let nature do the work

The Economy in Loops

Industrialism: Accumulation Production-for-productions-sake Invisibility of key factors Centralization of production, massive upfront investment Focus on labour productivity : resources substitute for human energy Cog-labour: humans as component parts Regulation: controls as limits Scarcity-based: role of waste since WWII Globalization: free trade & intellectual property

Postindustrialism: Regeneration New relationship of culture to economics: centrality of human development Substitution of human creativity for resources Direct targeting of human need: conscious consumption Human-scale technologies: production distributed over the landscape ; Integration: ALL places are places of production Qualitative Wealth is PLACE-BASED Distributed regulation: incentives for positive action throughout economy. Self-reliance / interdependence: Trade recipes, not cookies

Structural obstacles to sustainability Nature of the Corporation Centrality of Economic Growth Ownership patterns inconsistent with Stewardship Alienated relationship to human need –Creating rather than responding to it

The Business Case for Sustainability Single Bottom Line Sustainability (SBLS) Essential to large corporations Not sufficient to create ecological economies Corporations need outside help!

Internal & External Action The balance is different for big & small business Relationship between democracy & economic evolution Centrality of Stakeholder relationships Importance of New Enterprise Networks

Market Transformation Social & Environmental Values become drivers of mindful markets Money & capital increasingly a means (not the end-goal) of economic development Involves the transformation of regulation incentives & disincentives built into everyday economic life

Value Revolution & Market Transformation Values-driven business BALLE, GET Green/social Evaluation LCA, Eco-footprints, Community Indicators Green/social Certification LEED bldg., FSC wood, LFP food Transformative /collective consumerism

Corporate Strategies Corporations as financial, not production, entities Structural problems: the bottom line documentary: The Corporation Need to change corporate DNA Need for outside help: regulation (EPR), new enterprises networks, certification The Stakeholder Corporation & democracy

Community / Small Business The realm of cutting-edge alternatives in almost every sector Need for new & stronger networks Local market power based on solid knowledge Import substitution Regenerative finance Necessity of empowering all sections of the community Community development Plans & Indicators

Values-Driven Business

5 Dimensions of Values- Driven Business

Living in De-Material World Redesign not simply controls Direct focus on human (& environmental) need The Service Economy: Extended Producer Responsibility (EPR) encouraging provision of services not stuff. Servicizing (voluntary EPR). The Lake Economy: economic biomimicry: sectoral orientation: regenerative food, energy, manufacturing, c ommunications. New forms of economic security Conscious support of the Commons Disarming the autonomous power of money Building a community/ecosystem base: localization.

Social Change Today Strategic priority of ALTERNATIVES over opposition. Community as the key locus for change, but every level requires action Need for long-term VISION Need for incremental change and PIONEER ENTERPRISES in ecological economic succession. Need for incentives/disincentives thoughout the entire economy.