Perspectives on Green Business ENVS 5150 Brian Milani

Perspectives on Green Business ENVS 5150 Brian Milani bmilani@web. ca

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 “missiondriven” 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 Earth’s 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 -D’s of Green Development • Dematerialization • Detoxification • Decentralization

Common Sense Economics 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. Herman Daly “Trade Recipes, not Cookies. ” 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 Use-value “Consumption” People Unpaid Women Informal Private Visible Exchange-value “Production” Things Paid Men Formal Public

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

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, Closedloop organization, Let nature do the work

The Economy in Loops

Industrialism: Accumulation • Production-for-production’s-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

Companies that provide products or services that improve the quality of life in their communities Companies that invests their profits in social or environmental causes Values-Driven Business Companies that operate more responsibly

employees community company 5 Dimensions of Values. Driven Business customers suppliers

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.