Thursday, May 6, 2010

Global Environmental Crisis

Got asked the other day the following question:

What is/are the root cause/s of the Global Environmental Crisis?
How can they be addressed?

Here are my thoughts. I would love to hear yours either here or on facebook via
http://www.facebook.com/notes.php?id=743408854#!/note.php?note_id=418673911003

The root causes of the global environmental crisis stem from the disconnect of people from acknowledging they are part of nature and environmental cycles rather than being separate from or able to control nature.

In the business world there is a growing discussion that measuring a business’s success in terms of profit and shareholder dividends alone is no longer good enough. When assessing the sustainability of the business and the risks it faces, investors can take into account more the impact the operation has on the local communities and the natural resources it is dependent on. Countries continue to use the measure of Gross Domestic Product (GDP) to show the health of the country and how well it is progressing. GDP does not take into account what is being produced (money spent on recovering from natural disasters and building more military arsenal adds to GDP just as providing housing and producing food does) or what effect it has on nature (clear felling forests for the timber adds to GDP however no account is taken for the loss of biodiversity or ecosystem services that the forest provides, such as producing oxygen).

It is measures like GDP that have driven the growth in consumerism where more goods are being purchased and hence need to be produced,therefore raising the GDP of an economy. Marketing leads people to believe that more “things” will make them happy and show them to be successful in their communities, however this does not necessarily lead to a healthy and happy community. People need to appreciate those “things” from a perspective of what has been utilised to produce them.

We can address this disconnect by raising awareness of the interconnectedness and reliance we as the human species have on a healthy planet. Educating people in what is involved in producing food and goods so that they choose options that have a lower embedded energy, along with a lower social and environmental cost, will help reconnect people to their place in nature. This will lead to more meaningful measures of success being adopted such as Genuine Progress Indicator (GPI) or Index of Sustainable Economic Welfare (ISEW) rather than GDP, thus allowing a further break from the current connection between consuming more “things” as measures of success.

Looking at our planning and design requirements in all aspects of life is another way to address the crisis. By giving more consideration to the production processes of products to enable them to be reused and recycled can reduce our environmental impact. Moving back to producing products that have longer design life expectancy rather than adhering to a replacement system and finally, by designing products so that the output from one process becomes the input in another process while utilising nature to assist the cycles and hence reduce the energy required in the production process, are all solutions to addressing the global environmental crisis.

Overall we need to think more strategically around sustainability issues taking into account in our management of the 5 major types of capital being: human capital, financial capital, natural capital, produced and social capital.

In conclusion, the key to addressing the global environmental crisis is having a longer term perspective that revitalises the role humans play in generating sustainable growth that does not disproportionately disadvantage ecosystems or human cultures.

2 comments:

Marcel Wiedenbrugge said...

PART I

I have always worked in the commercial sector and still do. From my point of view we live in a world with an economic system that apparently can only flourish as long as there is growth. This basic idea is the source of many of the problems we face today. In finding (future) solutions for these and related problem we should not talk about growth itself (which in itself is ok), but focus more on the forces that drive and impact growth.

The last - or maybe still current - crisis is (was) not only a financial crisis, but also a moral (lack of principles) and spiritual crisis (lack of trust). Businesses can experience the effects, as banks have become more reluctant or (too) strict to lend money. The focus on pure (exponential) economic growth can and will lead to significant imbalances (such as the credit crisis) and unnecessary waste of time and resources (and thus money). It’s is not easy discussion / topic, as various stakeholders may have different (strategic) interests, especially governments. However, every child can (should) understand, that if you consistently spend more money than you receive, you will sooner or later get problems. I don’t think that there is a quick or easy solution for this problem. So we better make the most out of the current situation and I think a focus on more sustainability and stability is a wise choice.

What does sustainability (in business terms) mean to me?

People may have different ideas about what sustainability means. I am not an exception to that rule, so here is my list what sustainability means to me.

- continuity (what can or do we have do today so we can live at the same or better standards tomorrow)
- efficiency (optimizing processes and procedures, trying to avoiding waste of time, resources and money)
- recycling and re-usability (finding more sustainable ways of consuming, without compromising on quality)
- adaptability / flexibility (as change is a natural and unavoidable process in life)
- cross functional sharing of knowledge and experience (we instead of I, synergy, 1+1=3, giving = receiving)
- being practical (if people don't see it happening in daily life, then it doesn't trigger different behavior)
- changing behavior (one of the most difficult ones, creating awareness is a good start)
- profitability (without profitability, sustainability is not possible, however we need to define what profitability means by taking more factors into account than just revenues and cost)
- there is always room for improvement as a standard way of thinking (perfection is only a temporary status, imperfection is the norm)
- less is more (more focus on quality (sustainable), less focus on quantity (waste, consumption, non-durables)

Dr Merrin Pearse - Asia's #1 Ecopreneur said...

Marcel, great part 1. Looking forward to the next part.