Natural Capitalism 

Natural Capitalism is a vision for a new industrial system based on a very different mind-set and set of values than conventional capitalism. It is based on four central strategies that are a means to enable countries, companies, and communities to operate by behaving as if all forms of capital were valuable:

1. Radical Resource Productivity. Radically increased resource productivity is the cornerstone of natural capitalism because using resources more effectively has three significant benefits: It slows resource depletion at one end of the value chain, lowers pollution at the other end, and provides a basis to increase worldwide employment with meaningful jobs. The result can be lower costs for business and society, which no longer has to pay for the chief causes of ecosystem and social disruption. Nearly all environmental and social harm is an artifact of the uneconomically wasteful use of human and natural resources, but radical resource productivity strategies can nearly halt the degradation of the biosphere, make it more profitable to employ people, and thus safeguard against the loss of vital living systems and social cohesion.

2. Biomimicry. Reducing the wasteful throughput of materials-indeed, eliminating the very idea of waste-can be accomplished by redesigning industrial systems on biological lines that change the nature of industrial processes and materials, enabling the constant reuse of materials in continuous closed cycles, and often the elimination of toxicity.

3. Service and Flow Ecomony. This calls for a fundamental change in the relationship between producer and consumer, a shift from an economy of goods and purchases to one of service and flow. In essence, an economy that is based on a flow of economic services can better protect the ecosystem services upon which it depends. This will entail a new perception of value, a shift from the acquisition of goods as a measure of affluence to an economy where the continuous receipt of quality, utility, and performance promotes well-being. This concept offers incentives to put into practice the first two innovations of natural capitalism by restructuring the economy to focus on relationships that better meet customers' changing value needs and to reward automatically both resource productivity and closed-loop cycles of materials use.

4. Investing in Natural Capital. This works toward reversing worldwide planetary destruction through reinvestments in sustaining, restoring, and expanding stocks of natural capital, so that the biosphere can produce more abundant ecosystem services and natural resources. All four changes are interrelated and interdependent; all four generate numerous benefits and opportunities in markets, finance, materials, distribution, and employment. Together, they can reduce environmental harm, create economic growth, and increase meaningful employment.

On-line Articles and Publications

Natural Capitalism
This website provides access to the main ideas through downloadable chapters of the book Natural Capitalism by Paul Hawken, Amory Lovins, and Hunter Lovins. The site also provides an on-line discussion forum as well as reviews of the book.

The Natural Capitalism Group
The Natural Capitalism Group (NCG) works with decision-makers in corporations, academic institutions, and governments around the world. NCG provides practical tools and strategies for decision-makers to quantify and implement sustainable practices within their organizations. The website includes suggested readings and websites pertaining to natural capitalism.

"Natural Capitalism." Mother Jones, March/April 1997.

"Natural Capitalism: An Interview with Amory Lovins." Resurgence, December/February 2001.

"A Road Map for Natural Capitalism." Harvard Business Review, May/June 1999.

Last updated June 23, 2003

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