The Natural Advantage of Nations: Business Opportunities, Innovation and Governance in the 21st Century

, by Hargroves, Karlson; Smith, Michael H.; Lovins, Amory B.

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ISBN: 9781844071210 | 1844071219
Cover: Hardcover
Copyright: 5/30/2005

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This book is more than just a "palliative care" guide for the planet-it is about innovation, solutions, competitiveness and profitability. At work, at home and as members of society, our generation has an obligation-and an exciting opportunity-to be part of the solution in restoring the balance. The authors present a bold vision for the future and demonstrate how we can get there, drawing on lessons of competitive advantage theory and the latest in sustainability, economics, innovation, business and governance theory and practice. The result is nothing less than the most authoritative and comprehensive guide to date, to building the new ecologically sustainable economy. For further information about The Natural Edge Project and to view the book's online companion, visit www.naturaledgeproject.net.

List of Figures and Tables

xiii

Forewords by

Alan AtKisson

xvii

Amory B. Lovins

xix

William McDonough

xxiii

L. Hunter Lovins

xxix

Michael Fairbanks

xxxv

Preface by Karlson 'Charlie' Hargroves and Michael H. Smith

xxxviii

Acknowledgements

xlii

List of Acronyms and Abbreviations

xlvi

Introduction: Insurmountable Opportunities

(6)

SECTION 1: THE NEED FOR A NEW PARADIGM

1 Natural Advantage of Nations

(27)

Progress, competitiveness and sustainability

(5)

Significant potential for resource productivity improvements

(2)

Creating competitive advantage of the firm

(2)

A critical mass of enabling technologies

(6)

Externalities: who pays?

(2)

Benefits of valuing nature

(1)

Implications and benefits for global development

(9)

2 Risks of Inaction on Sustainable Development

(9)

A great transition

(2)

A sense of urgency

(3)

Declining ecosystems: a new limiting factor for growth?

(2)

Can we replicate nature's services?

(2)

3 Asking the Right Questions

(14)

How should we measure growth?

(2)

What is meant when we speak of 'sustainability' and 'sustainable development'?

(2)

Achieving sustainable genuine progress or sustainable development

(1)

Can we achieve no major trade-offs and win-win opportunities?

(3)

How do nations measure progress?

(2)

How do we design for legacy?

(2)

Can we turn 'vicious cycles' into 'virtuous circles'?

(3)

4 A Dynamic 'Platform for Change'

(11)

Economic policy: the broader context

(6)

The invisible hand

(2)

Collaborative approaches

(3)

Tripartite world

(1)

Whole of society approach

(11)

Importance of capacity building

(1)

5 Thinking Locally, Acting Globally

(7)

SECTION 2: NATURAL ADVANTAGE: A BUSINESS IMPERATIVE

6 Natural Advantage and the Firm

(34)

The changing nature of competition

(6)

Achieving competitive advantage through strategic positioning

(2)

What will be the major driver of innovation in the 21st century?

(4)

Moving early to exploit structural change

(2)

Why integrate sustainable development into corporate strategy?

(3)

Downsizing: a strategy that no longer cuts it

(2)

The shifting nature of competition in emerging economies

(4)

Additional drivers for sustainable development

(10)

Achieving radical resource productivity

(3)

New opportunities for product differentiation

101

(3)

Increasing profitability and minimizing risk (Porter's 5 Forces Model)

104

(5)

Threats of new entrants

104

(1)

Threat of substitute products or services

105

(1)

Bargaining power of buyers

105

(3)

Power of suppliers

108

(1)

7 Innovation and Competitiveness through Industry Cluster Development

109

(9)

Cocoa beans...and what else?

Michael Fairbanks and Andrew Smith

110

(1)

The cluster development process

111

(1)

Government role in promoting cluster competitiveness

116

(1)

A way forward

117

(1)

8 The Political and Social Context: A Sixth Force on Business?

118

(17)

Consumer demand change: knowing your market

118

(2)

Human resources: attracting the best people

120

(1)

Staying ahead of changes to government regulations

121

(3)

Can market based mechanisms be designed to assist firms to achieve competitive advantage?

121

(1)

Can regulation be designed to assist firms to achieve competitive advantage?

122

(1)

Raising the bar: independent certification schemes

123

(1)

The insurance industry: responding to climate change

124

(3)

The finance industry: a new paradigm in investment

127

(8)

The practice of ethical and socially responsible investment

130

(5)

9 Accelerating the Sustainability Revolution

135

(26)

Overcoming short-termism

135

(15)

Incentives for business leaders

136

(1)

Reform of fiduciary duty for pension and superannuation funds trustees

L. Hunter Lovins and Walter Link

137

(4)

Environmental management accounting in Japan

Chika Saka, Roger Burritt, Stefan Schaltegger and Tobias Hahn

141

(9)

Grounds for change: the exciting developments in firm level economics

150

(11)

Efficiency gains within firms under voluntary environmental initiatives

Bruce Paton

157

(4)

10 Operationalizing Natural Advantage through the Sustainability Helix

161

(10)

The business case for sustainability

161

(17)

The management helix for the sustainable organization (Sustainability Helix)

162

(1)

Sustainable Business Practice: The Fieldguide to Natural Capitalism

163

(8)

SECTION 3: ACHIEVING A NATURAL ADVANTAGE OF NATIONS

11 The Role of Government

171

(46)

The tragedy of the commons: 35 years on

178

(3)

Government mechanisms

181

(1)

The regulatory measure response

182

(11)

Mental models of voluntary environmental initiatives

Bruce Paton

188

(5)

Voluntary agreements: effectiveness analysis - tools, guidelines and checklists

Roger Burritt

193

(1)

Allars' characteristics of effective voluntary agreements

193

(1)

The generic Canadian pro forma for voluntary initiatives

194

(1)

The United Nations Environment Programme's (UNEP's) Industry and Environment Technical Report

196

(1)

The Organisation for Economic Co-operation and Development's (OECD's) approach

199

(1)

Can regulation be designed to improve competitiveness?

200

(9)

Effective economic measures to complement either voluntary or regulatory approaches

202

(3)

Natural resources

205

(3)

Government-industry partnerships to improve innovation

208

(1)

From clusters to national systems of innovation

Rob McLean with Jaya Pillia

209

(3)

Managing industry transitions through waves of innovation

Philip Sutton

212

(5)

12 Towards a Deeper Understanding

217

(27)

Markets and efficiency

217

(9)

What is a market?

217

(1)

How do economists define efficiency?

218

(1)

The classical understanding

218

(1)

Perfect complete markets

219

(1)

The economics of information

220

(2)

Financial markets: what they do and why they are fragile

222

(2)

Anti-monopoly legislation: competition policy

224

(2)

Challenges to governments and institutions

Stephen Dovers

226

(1)

Attributes of policy problems in sustainability

227

(1)

Clarifying government, governance and institutions

228

(1)

Available scales of sustainability governance

230

(1)

Scaling responses

231

(1)

Principles and elements of policy and institutional reform

233

(1)

Is there 'credible commitment' to sustainabilty?

236

(2)

National Councils for Sustainable Development

Stephen Dovers

238

(1)

Features of NCSDs

239

(1)

Specific NCSDs as examples

239

(1)

NCSDs and international agreements

242

(1)

General observations

243

(1)

13 National Systems of Innovation

244

(27)

Paul M. Weaver

Practice makes perfect

244

(2)

Innovation systems are part of today's development paradigm

246

(1)

The challenge to innovation systems

246

(7)

The Dutch National Sustainable Technology Development programme

253

(2)

The Netherlands context

255

(1)

Recent developments

258

(2)

Lessons from the Dutch and other programmes

260

(4)

Concluding remarks

264

(7)

14 Sustainability in the Wild West (State Government)

271

(14)

Peter Newman

The Fremantle Declaration: 'Passing the Torch to the Regions'

272

(1)

The Western Australia State Sustainability Strategy: is change happening?

272

(1)

Process for developing the strategy

276

(1)

Public engagement

276

(1)

The policy change process

277

(1)

What have we learned?

282

(3)

15 Delivering Sustainability Through Local Action (Local Government)

285

(16)

A worldwide movement of local governments

Wayne Wescott, Martin Brennan and Yolande Strengers

285

(3)

Sustainability Street: it's a village out there

Vox Bandicoot and Environs Australia Projects

288

(1)

Leadership in the local government sector: working from inside out

Valerie A. Brown

289

(1)

Sustainability leadership in the local government sector

290

(1)

Profile of sustainability leadership

290

(1)

'When everything is said and done - more is said than done'

293

(1)

Sector-wide action

294

(1)

Sustainability advocacy in the local government sector

295

(6)

SECTION 4: SUSTAINABLE CITIES: THE CHALLENGE OF THE 21ST CENTURY

16 Tomorrow's Mega-cities: How Will They Develop?

301

(15)

Governance of municipalities: a snapshot of sustainable development in China

Mark Diesendorf

303

(3)

The Goa 2100 Project: a breakthrough project from India

Alan AtKisson

306

(10)

17 Profitable Greenhouse Solutions

316

(30)

Michael H. Smith and Alan Pears

Energy systems: drivers for change

316

(1)

Vulnerabilities in the energy system

317

(1)

Threat of climate change

320

(1)

Greenhouse solutions that do not cost the earth

326

(1)

A historic opportunity

337

(1)

Issues identification

342

(4)

18 Greening the Built Environment

346

(25)

Cheryl Paten and Janis Birkeland with Alan Pears

Building positive examples

347

(3)

The significance of greening the building and development industry

350

(2)

Perceived barriers to change

352

(1)

Information failures

352

(1)

Market failures

352

(1)

Institutional failures

352

(3)

From pioneers to systemic change: cultural reform

355

(1)

Information reform

356

(1)

Market reform

359

(1)

Institutional reform

360

(1)

Rating schemes

361

(3)

Design practice reform

364

(1)

Design process elements

364

(1)

Residential buildings

365

(1)

The future in design approaches

368

(2)

Summary

370

(1)

19 Sustainable Urban Transport

371

(16)

Jeff Kenworthy, Robert Murray-Leach and Craig Townsend

Economic impacts of transport choices are significant

371

(1)

Methodology of the Millennium Cities Database

373

(1)

Characteristics of urban transport systems

373

(1)

Sustainable transport systems

380

(1)

The importance of urban form

381

(1)

Sustainable urban development

382

(1)

Designing around the mind: understanding behaviour

383

(1)

Civil society and business

384

(3)

20 Water: Nature's Gold

387

(20)

Michael H. Smith with David Dumaresq

Key drivers for change

388

(1)

Rationale for dams in the past

391

(1)

Creating a robust foundation and framework for water management

396

(1)

The Council of Australian Governments Agreements on Water Policy

398

(1)

The COAG communique to develop a National Water Initiative

399

(1)

A robust separation framework

401

(1)

Water access entitlements: allocations and use conditions

401

(3)

Conclusion

404

(3)

SECTION 5: A NATIONAL COLLABORATIVE APPROACH: THE BIGGER PICTURE - BUILDING RESILIENCE

21 Integrated Approaches to Sustainable Consumption and Cleaner Production

407

(23)

Christopher Ryan

Consumption and low impact affluence

407

(3)

Patterns of consumption are a global issue

410

(1)

Policy approaches and action

411

(1)

Summary of policy approaches for sustainable consumption

412

(5)

Industry attention and action

417

(1)

Strategies for the future

418

(1)

Clarifying the focus for action on consumption

418

(1)

Developing better indicators

418

(1)

An alternative conceptual approach for describing systems of production and consumption

421

(1)

Enhancing the potential of limited, localized actions

425

(1)

Improving products and services: the logical focus for production and consumption

426

(1)

The overall strategic goal: leapfrog to new systems of products and services

427

(3)

22 Changing Hearts and Minds: The Role of Education

430

(15)

The need for critical literacies in sustainability

430

(2)

Sustainable development in schools

Anna McKenzie

432

(1)

Constructive environmental education

432

(1)

Adding value not load

433

(2)

Key role of higher education and the professions

435

(8)

Harnessing universities' research capacity

437

(3)

Partnering with professional bodies to build capacity

440

(3)

The power of individuals

443

(2)

23 Achieving Multi-stakeholder Engagement

445

(17)

What is multi-stakeholder engagement?

445

(2)

Where does multi-stakeholder engagement fit in?

446

(1)

Current issues with multi-stakeholder processes

446

(1)

Looking forward: multi-stakeholder process design

446

(1)

Engaging the spirit

447

(1)

Introducing the Pyramid: a versatile process and planning tool for accelerating sustainable development through multi-stakeholder engagement

Alan AtKisson

447

(1)

What is the Pyramid?

448

(1)

How the Pyramid process works

451

(6)

Building a network around a project: The Natural Edge Project

Karlson 'Charlie' Hargroves, Michael H. Smith, Cheryl Paten and Nick Palousis

457

(5)

Notes

462

(29)

References

491

(22)

Index

513

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The Natural Advantage of Nations: Business Opportunities, Innovation and Governance in the 21st Century

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Table of Contents

Supplemental Materials