Technology and business have always coexisted in history, with new industries and business concepts connecting with technology and offering beneficial outcomes and new markets.
Examples of this in today's business world include the development of the Internet Web 2.0, mass production and international airline carriers.
Today, another new market is emerging around the world, called natural capital. It is beginning to pervade the investing landscape with serious talk of climate change business opportunities and ecological responsibilities. |
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What is Natural Capital?
In economics, capital and capital goods are factors of production used to create goods or services that are not themselves significantly consumed (though they may depreciate) in the production process.
Natural capital is the extension of the economic notion of capital to goods and services relating to the natural environment.
Natural capital is the stock of natural ecosystems that yields a flow of valuable goods or services into the future.
The main resources of the natural capital market in the 21st century are:
- Energy (electricity, fuel)
- Water (clean, grey, waste)
- Waste (sewage, carbon, uranium)
- Recycleable Non Durable Consumption (Paper, ink, light bulbs)
- Recycleable Durable Consumption (maintenance, repairs)
- Recycleable Human Consumption (packing, food, products)
The combination of technology and natural capital provides the ground work for a new type of economic revolution that will surpass the industrial revolution.
Technology is the state of the art of the whole field of practical know-how and tool use.
It therefore encompasses all that can be said about arts, crafts, professions, applied sciences, and skills.
The natural revolution is coming because the world's industrial technologies are beginning to become unprofitable or inefficient, due to constaints on resources and markets that are caused by environmental and social issues. |
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The next part looks at the key concepts in the natural revolution and definitions of the ideology.
It compares the ideas of the last 200 years of the industrial revolution to the demands of the evolving natural revolution of the 21st century.
Industrial Revolution - the revolution the world needed
The Industrial Revolution was a period in the 18th and 19th centuries when major changes in agriculture, manufacturing, mining, and transport had a profound effect on the socio-economic and cultural conditions of the world.
The onset of the Industrial Revolution marked a major turning point in human history; almost every aspect of daily life was eventually influenced in some way.
Main points of the Industrial Revolution:
- Increased worker productivity output by 100 fold.
- Created conditions for a consumerist society.
- Natural resources were plentiful. (Natural capital)
- Productivity was measured in part by how many boats you had for fishing; or how many chainsaws you owned for forestry.
- Human resource capital became a less important part of profits. (e.g. the end of slavery)
- Technology was a significant factor in the industrial revolution.
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Natural Revolution - the revolution the world needs now
The Natural Revolution refers to a hypothetical series of research, development, and technology transfer initiatives, to improve the industrialised or technology driven natural capital production of the world.
The initiatives involved in the development of the Natural Revolution include carbon reduction, waste recycling , and efficient farming practices, to name a few.
Main points of the Natural Revolution:
- Natural resource productivity will increase by a 100 fold.
- A continuation of a consumerist ideas.
- Natural resources not limitless. (Natural Capital)
- Productivity is now measured by how many fish you have in the sea, not how many boats, and how many trees are in a forest, not how many chainsaws you have.
- Natural capital use must become more efficient (e.g. oil, fresh water, and soil).
- Technology will be a large influence in the natural revolution.
What does this mean for Individuals and Organisations?
For individuals and organisations to adjust to the changing environmental and public concerns, there will be legal requirements and operational efficiency improvements.
Natural Capitalism and technology innovation offers a logical way for people and organisation to reorganise and adapt to these new economic and social changes in our modern society.
A good example of an emerging Natural Capitalist economy and country is the Maldives, where President Mohamed Nasheed is championing climate change awareness, carbon trading and environmental harm minimisation.
With regard to the threat posed to the very low-lying islands by changes in sea level caused by global warming, in March 2009, President Nasheed pledged to set an example by making the Maldives carbon-neutral within a decade by moving to wind and solar power.
He argued that the cost of the change would be no higher than what the Maldives already spends on energy.
As part of a wider campaign by international environmental NGO 350.org's campaign publicising the threats from climate change and its effects on the Maldives, Nasheed presided over the world’s first underwater cabinet meeting on 17 October 2009, off the island of Girifushi with his ministers meeting underwater in scuba diving gear.
The end result of applying innovative technology and natural capitalism to the world will be the start of the Natural Revolution. The Maldives and other smart countries are moving ahead of the environmental curve and applying natural capital ideas to develop their countries.
- Saving on natural capital is good for your organisations' mid and long-term bottom lines.
- The sooner your organisation starts thinking about natural capital, the less painful it will be in the future.
- This will be eventually mandated by governments. (carbon trading, environmental laws etc.)
- Natural capital will become increasing expensive in the future, due to scarcity, environmental impacts and increased population.
- Technology will play a large influence in the natural revolution.
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Individuals, business and organisations have to change the way they operate and by increasing their efficiency with the natural capitalism ideology.
Combining technology and natural capitalism is the best way to accomplish this for a green planet and to kick start the global natural revolution.
