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Online Version of this Issue Green Career Tips Archive
Can capitalism and environmentalism work to benefit each other? This issue describes just how prosperous this partnership can be with Amory Lovins’ book: “Natural Capitalism: The New industrial Revolution.”
Carol will be guest speaker at SolFest XIII in Hopland, CA this August 16th. Check out the Highlighted Event section below for more information.
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Highlighted Event
SolFest XIII –
Solar Living Institute
Hopland, California
August 16-17, 2008
On August 16th at 11am, Carol will be a guest speaker at SolFest, the world's premier two-day celebration of renewable energy and sustainable living. In her presentation entitled "What You Need to Know to Find Your Green Career," Carol will share tactics and strategies you can use to plug into the green economy.
For more information and for tickets check out the Solfest website.
Tip of the Week: Natural Capitalism: The Path to a New Industrial Revolution
With any new era comes a new vocabulary. Remember the early days of the internet era?
Amory Lovins, co-founder, chairman, and Chief Scientist of the Rocky Mountain Institute, created a new term for the new economy that goes beyond the triple bottom line concept we’ve written about before. Fully described in his book Natural Capitalism: The New Industrial Revolution, co-written with Paul Hawken and Hunter Lovins, this concept has far-reaching ramifications for the role business plays in the welfare of the planet.
Learning about this way of doing business can help you in a number of ways.
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If you currently work for a company that is evaluating their methods, you may discover some value you can take to your current workplace.
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If you already have skills or want to develop skills related to this perspective, you may discover a niche for a consultancy business or your own career.
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If you are looking for a green career, knowing about these concepts may help you win a job interview or inspire new ideas about your future direction.
Natural Capitalism is based on the reality that the earth’s natural resources provide us with two precious things:
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Natural Resources – the materials we extract, process and use in producing products and providing services.
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Ecosystem Services – the natural services the oceans, forests, and plains provide when they are in good shape—water storage, habitats, climate regulation, and atmospheric cleanliness.
Although we don’t “pay” for the ecosystem services, they are vital to the well being of the planet as a whole. We can’t live without them and there are no known alternatives for these services. According to Lovins, the value of these ecosystem services is at least $33 trillion per year.
Natural Capitalism incorporates protecting the biosphere while also improving the efficiency, competitiveness, and profitability for the businesses that adopt this approach.
The book, Natural Capitalism, lays out a four stage process for businesses to follow.
Stage 1: “Dramatically Increase the Productivity of Natural Resources”
The goal in this phase is to change the way products are designed and manufactured to use resources (energy, water, raw materials) as efficiently as possible. They recommend employing a “whole-system design” to save the most resources, thereby saving the most money.
One Example: Interface Corporation’s new carpet factory in Shanghai was designed to use a system of pumps that required 95 horsepower to run it. With two very simple changes to the system, the power requirement was reduced to only seven horsepower. The two changes: fatter-than-usual pipes (which create less friction and require less power) and smaller pumps.
Businesses that take this approach to reviewing all of their internal systems have the opportunity to reduce wasted energy, reduce the materials needed, decrease the number of steps in each process, and minimize the amount of pollution created by the process. As a result they save money and increase profits. What’s not to like in that scenario!
Stage 2: “Redesign Production According to Biological Models”
The next step is to create ways to manufacture products that eliminate all waste. The key is “closed-loop manufacturing” where all outputs become inputs to another system. This cuts the cost of disposing of waste and often becomes the catalyst for new processes that avoid using toxic materials all together.
One Example: Rather than redesigning an existing carpet to be more environmentally friendly, Interface did a “clean sheet” redesign to develop a floor covering that lasted longer, used fewer materials, was free of toxic materials, was stain proof, easily cleaned, and beautiful. The result was a brand new product called Solenium. Between 1994 and 1998 the company kept the same level of resources and increased revenues by $200 million. Of that total, $67 million was the result of eliminating waste that used to end up in landfill.
Stage 3: “Change the Business Model”
For companies ready to move to the next level, the focus is to switch their business model from selling consumables to providing a long term service.
One Example: Interface switched from selling carpet to providing floor covering services. With their new service orientation they lease floor coverings to large companies for a monthly fee. The company monitors the floors, keeping them clean and replacing sections as needed.
Given that billions of pounds of discarded carpet end up in landfill each year (and linger there for an estimated 20,000 years!) this replacement strategy keeps more of the carpet in buildings for as long as possible.
This shift to a service orientation turns a fundamental tenet of capitalism on its head. It’s NOT about how many widgets are purchased; it’s about extending the use of an asset as long as possible. Imagine an economy that grows rich by using less.
Stage 4: “Reinvest in Natural Capital”
In the next stage, companies reinvest their earnings in restoring and sustaining the natural habitat that their company depends on for its success. If companies work with nature’s truths rather than against them, nature often revitalizes itself naturally.
One Example: The California Rice Industry used to burn their fields after harvest to clear the fields for the next crop. Now they flood 30% of the rice fields in the Sacramento Valley, which attracts wildlife and wildfowl, renews the groundwater, and improves the fertility of the fields. In addition they bale the remaining rice straw to sell for straw bale construction. The silica in the rice that was toxic when burned is precisely what resists insects and makes the rice straw valuable.
Although many companies don’t see themselves as having a direct relationship with nature, their perception is likely to change as they work through the steps of Natural Capitalism.
What Keeps Companies from Turning to Natural Capitalism?
Although the move to this way of business seems like a win for the businesses, customers, and the environment, there are current business practices that make the move counter productive. Accounting practices, tax laws, and traditional salary structures keep businesses stuck in the more-is-better mindset.
Hopefully business practices will evolve such that companies can do what is necessary for the planet while also making a substantial profit.
Copyright © 2008 Transition Dynamics Enterprises, Inc.
"GCC's process was incredibly helpful in getting me started in a new career direction. The worksheets and brainstorming exercises in the What's Your Green Niche ebook helped me realize I already had the skills to launch a new green career. Today, less that four months later, I have a terrific salary doing business development for energy and environmental projects. Thanks to Green Career Central, my dream of merging my personal conviction with professional life came true."
-- Kelly Fergusson
Menlo Park Councilmember (Mayor, 2007) turned Business Development Manager of Energy & Environmental Solutions
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The What’s Your Green Niche eBook eBook takes you through a step-by-step process to determine your green niche. Here's a list of some of the things you'll gain as you work through this eBook. You'll:
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What's New at GreenCareerCentral.com
More Companies Added to the Sustainable Job List
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Green Career CentralTM is a virtual career center for motivated professions who want to discover how to prosper in the green economy.
Carol McClelland, PhD, founder and managing editor of this site, has helped thousands of people discover their dream career through her book Your Dream Career For Dummies and her work with individuals, groups, and students. Together with her team of experts, researchers and writers, Carol has pulled together sixteen years of experience into a broad collection of how-to articles, resources, support, and teleclasses to help you find your way to make a difference and prosper.
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