sustainable
wealth
creation
within environmental limits
Tom Chambers, Jonathon Porritt, Peter Price-Thomas,
March 2008
acknowledgements
Sincere thanks to our colleagues who assisted in creating
this paper.
At The Natural Step International: Stanley Nyoni and
Karl-Henrik Robèrt for illustrating contraventions of
the System Conditions.
At Forum for the Future: Peter Madden, Sally Uren,
David Bent, Audrey Healy, Lynne Elvins, Ben Tuxworth
and Mardi Neumann, for their comments and contributions.
contact details
The Natural Step
Stephen Jacobs
Executive Director
The Natural Step, Southern Africa
E: [email protected]
T: 021 7150526
www.thenaturalstep.com
Forum for the Future
E: [email protected]
T: 020 7324 3639
www.forumforthefuture.org.uk
Registered office: Overseas House,
19-23 Ironmonger Row, London, EC1V 3QN
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Company limited by guarantee: 2959712
Date of publication: October 2007
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2
Sustainable wealth creation: Introduction
introduction
Global population is increasing and consumption rates
are rising. In conventional terms, this is good news for
business, but you don’t need to read the papers every
day to realise that these trends now pose serious
problems for business leaders all over the world.
The resources on which we rely are being depleted at
accelerating rates. Climate change is threatening supply
chains, and social injustice is restricting access to
markets. Consumers and investors are more critical of
business than ever before, and their views are reflected
in a growing burden of government regulation on a range
of issues from energy to workers’ rights.
These trends make ‘business as usual’ impossible. Most
businesses are at least managing their environmental and
social impacts as risks. Some – the Leader Businessess –
are beginning to see the opportunities that will come by
embracing the idea of sustainable development and
developing the goods and services that will help us
overcome these challenges.
Forum for the Future defines sustainable development as
‘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’. The implications for business are clear:
wealth creation needs to proceed within environmental
limits. This report explains what it means to create wealth
within those limits, and aims to help you to develop a
business model fit for the 21st Century.
At the heart of the report is The Natural Step (TNS)
Framework. The Natural Step has argued for a long time
that many of today’s favoured methods of assessing
environmental limits are not sufficient nor as
helpful to business as they should be.
As part of the commitments it made at the 2002 World
Summit on Sustainable Development in Johannesburg,
the UK Government’s Department of Environment,
Food and Rural Affairs (Defra) initiated five high-level
‘Sustainable Development Dialogues’ with China, India,
South Africa, Mexico and Brazil. As part of the Dialogue
with South Africa, Defra agreed that we should test out a
rather different approach to defining environmental limits,
with the specific purpose of helping businesses in South
Africa, and using The Natural Step.
A key element in that project was to bring together a
number of businesses and other participants in a special
workshop in Cape Town on 25th May 2007. The
workshop was led by Jonathon Porritt, Chair of The
Natural Step in the UK - also Chairman of the UK
Sustainable Development Commission - working with
Defra to help promote its Sustainable Development
Dialogues. This report is a further contribution to
those dialogues.
The Natural Step holds true just as much in South Africa
as in any other part of the world, as it anchors
environmental responsibility in hard science and offers
an uniquely rigorous approach to managing impacts.
The Natural Step has helped a wide range of businesses
around the world set a strategy for profitability and
sustainability. We hope this report will enable you to
set your business on that path.
For more information on how to address environmental
limits in your business planning, you can refer to a more
detailed version of this report that is available in PDF
format from Forum for the Future. You can also go into
more detail on the business opportunities arising from
sustainable development, by referring to Leader Business
Strategies – also in this series and available from Forum
for the Future.
3
Sustainable wealth creation: sustainable wealth creation
sustainable wealth creation
It’s easy to forget that all profit ultimately depends on the
goods and services provided by the natural environment.
Nature is the ultimate source of all raw materials, the final
destination and processor of wastes, and provides a
range of life-support services that we take largely for
granted, including clean air and water and the regulation
of disease and natural hazards. In economic terms, nature
provides ‘natural capital’ from which all income derives.
Clearly this sets all of us – business included – on a
dangerous path. With no clear sense of the rate at which
we are using up natural capital, it is very difficult to avert a
disaster that might be 10, 15 or 50 years into the future.
Far more sensible, surely, would be to understand how
we are capable of overstepping the limits imposed by
the natural world – and use this knowledge to learn to
operate within them.
Unfortunately, the value of these goods and services
provided by nature is not accurately reflected in the
market. The price of resources or of waste disposal
does not accurately ‘internalise’ the true environmental
and social cost of either, and as a consequence the
average business has no way of telling if it is generating
profit by overexploiting natural resources – using up
our stores of natural capital - or by living off
the income.
Profitable business within environmental limits is certainly
possible. Most businesses are at least potentially
sustainable. The challenge now is to find ways for
organisations to make a rapid transition to sustainability.
4
“The Natural Step is a helpful, pragmatic
approach which recognises the business realities
without compromising the objective.”
Vivienne Cox, BP
Sustainable wealth creation: environmental limits
environmental limits
Sustainable development depends upon all of us
functioning within ‘environmental limits’. So what exactly
are these? The Natural Step Framework offers a way of
understanding these limits by using the analogy of a
funnel, illustrated below.
Imagine humanity being poured into the funnel. The sides
of the funnel represent the way in which we encounter
natural and social limits. One side is the ‘supply’ axis:
the declining ability of nature to provide products and
DECLIN
ING LIF
E
two further planets like Earth to sustain current rates,
let alone those anticipated in the middle of the century.
But the analogy of the funnel also allows for survival and
success. As the walls of the funnel close in, we need
to ensure we do not place more demands on the
environment than can be sustained, either by reducing
per capita consumption, or reducing population, or a
range of other activities that will avoid a damaging impact
with the many factors that make up the walls of the
SUSTA
INING
RESOU
RCES
THE PRESENT
SUSTAINABLE SUPPLY
SUSTAINABILITY
SUSTAINABLE DEMAND
THE FUTURE
RCES
RESOU
R
O
F
MAND
TAL DE
IE
C
O
S
The resource funnel.
ASING
INCRE
services as a result of damage caused by pollution and
the destruction of habitats. The other represents demand:
the increase in the world’s population, and with it the rate
of resource consumption.
funnel. This is what it means to live ‘within environmental
limits’. Ultimately, it is possible for the walls of the funnel
to open out again, as we work to restore the capacity of
the environment whilst reducing our demands on it.
Entering the funnel, humanity finds itself in increasingly
stressful conditions, leading to more intense competition
for the remaining resources. As well as further impacting
on the natural environment, this increased competition
yields social problems: inequalities, limited access to the
essentials for life, and conflict.
The funnel helps us conceptualise limits and the strategies
we might need to overcome them. But The Natural Step
goes further in identifying the fundamental principles that
lie behind those limits, and reducing them to a set of
‘System Conditions’ – the rules that govern the relationship
between all of us, business included, and nature.
In some respects, this relationship between civilisations
and environmental limits is familiar from history, with
isolated civilisations from Easter Island to the Maya
collapsing because of overexploitation of diminishing
resources. But the challenge we face today is on a
different scale, with consumption and population growth
eating away stocks of natural capital at an unprecedented
rate. WWF estimates that around 40% of natural resources
have been consumed since the 1970s, and that we are
consuming resources at such a rate that we would need
The System conditions
In a sustainable society, nature is not subject to
systematically increasing:
1. concentrations of materials from the Earth’s crust
2. concentrations of substances produced by society
3. physical degradation of nature
and, at the same time, society does not systematically:
4. undermine people’s capacity to meet their needs.
5
Sustainable wealth creation: who should do what
who should do what
The System Conditions might at first sight look like a
rather demanding formula for business to understand and
use. It would certainly make life easier to imagine that
caring about environmental limits and social wellbeing
are properly the domain of government, whose job it is to
set a framework of incentive and regulation within which
business exists to generate profit and wealth. ‘The
business of business is business’, as the saying goes.
But most businesses have long since abandoned this
view. They recognise that they have wider responsibilities
– for their staff, the resources they draw on and the waste
they produce. On many of these issues leadership must
come from within industry - it simply will not be enough to
say that they comply with current regulations if they want
to remain competitive.
The businesses at the forefront of this transition now see
sustainability not only as a responsibility, but as an area
of opportunity – a space that will lead to innovation,
differentiation and access to new markets.
“To work towards sustainability in business
is not only the right thing to do. It is also
profitable. In the short term, non-sustainability
has already started to cost more resources and
money than most people realise. And in the long
term, head-over-heal investments in sustainable
practices will be more and more costly, the longer
you wait. To strategically earn money from stepby-step progress towards social and ecological
sustainability, you need feeling, thought and
competence. It was love at first sight when I
learnt about The Natural Step and its methods.”
Mats Lederhausen, Executive Vice President,
McDonald’s Corporation
6
That’s not to say that business alone can create a
sustainable future. Governments and individuals need
to play their part too. Government must move society
towards sustainability through the use of policy tools such
as environmental taxes and investment in research and
development. Government also needs to set minimum
standards for the environmental performance of products
and services, as well as regulating the amount that
companies can pollute. Lastly, government can use its
own considerable spending to provide incentives to
companies to meet its requirements in an environmentally
and socially responsible manner.
Citizens also have a role to play in encouraging
businesses to provide sustainable products and services.
Just as government spending decisions can help to
transform the market towards sustainability, so the
‘sustainable consumption’ choices of the general public
will continue to encourage businesses to change.
Sustainable wealth creation: how businesses can move away
how businesses can move
away from breaching
environmental limits
In practice, it can be very hard to identify the
environmental limits for every activity your business
undertakes. Trying to ascertain exactly how much
pollution or resource use or land-take your business
is entitled to raises some very complex questions.
It is hardly surprising that progress has been slow and
that standards set by governments have not been
enough to keep us within environmental limits. Leading
businesses are therefore anticipating the risks they will be
exposed to and maximising the opportunities associated
with being well prepared.
“When we were introduced to The Natural Step,
we realized we had found our framework.”
Tachi Kiuchi, former CEO Mitsubishi Electric America
“The Natural Step is a clear voice in
the commotion.”
Leif Johansson, CEO, Volvo
In this document we set out a six-step process you
need to go through in order to ensure the long-term
sustainability, and profitability, of your business,
using The Natural Step Framework.
7
Sustainable wealth creation: step one
1
step one
Adopt the System Conditions as sustainability objectives
Step 1 is to adopt the System Conditions
as the bedrock of your business model’s
sustainability objectives. The System
Conditions address the fundamentals of
environmental limits and our interaction
with them. They present a simple way of
addressing the causes of an otherwise
bewildering array of interconnected problems
such as climate change, dwindling resources,
species extinction, pollution, health
problems, and so on.
For example, climate change is caused mainly by burning
fossil fuels (System Condition 1), but also other activities
such as deforestation (System Condition 3) and the
release of certain chemicals such as chorofluorocarbons
(CFCs) (System Condition 2), all of which are the result of
how people try to meet their wants and needs (System
Condition 4). By working in a planned and systematic
way to avoid compromising the System Conditions,
you reduce your contribution to climate change as well
as a host of other issues that may affect your business.
Not only do the System Conditions enable you to move
away from all the limits, they also help you to clarify how
to (as Steps 2 to 6 will show you). For example, to prevent
materials from the Earth’s crust from building up in our
environment (System Condition 1), you can identify
various options: consider using different resources that
can be harvested in a sustainable way – such as timber
instead of metal, or wind power instead of fossil fuel; or
use recycled materials and recycle your wastes in order
to cut down on resource use and ensure that waste
cannot accumulate.
8
The System Conditions are like the rules of a game.
They set the boundaries but do not prevent us from being
enterprising in the way we play. Thinking about how to
avoid undermining the System Conditions opens up a
creative space for new business ideas and innovation.
The System Conditions can also be used to support more
detailed business strategy. For example, the major UK
construction firm, Carillion, used the System Conditions
as the starting point for their ‘Sustainability Excellence
Model’. They used the System Conditions to clarify
what they needed to do to achieve their goal of being
recognised as an industry leader in sustainability.
Their model is both unique to Carillion, and informed
by the System Conditions.
The System Conditions will be your companion
throughout Steps 2 to 6 as you consider how to achieve
business success whilst moving away from environmental
limits. The inside back cover provides a brief overview
of how it is possible to violate the System Conditions.
Further information can be found in the more detailed
PDF version of this report.
“As a guiding star, a compass, for our
environmental work, we have adopted the
four System Conditions. Each of us in our
various roles must now seek to put these
into practice, within the framework of our
business idea.”
Anders Moberg, former President, IKEA
Sustainable wealth creation: step two
2
step two
Identify violations of the System Conditions
Having adopted the System Conditions as
the bedrock of your sustainability objectives,
you need to establish a baseline that sets
out where you currently stand in relation
to them. To do this, it is best to look at the
full life cycle of your products and services –
taking a 'cradle to grave’ approach. For
instance, in the case of product manufacture,
you need to consider:
• the acquisition of energy and materials (the cradle)
• the processes for converting them into products
At each life stage, various forms of materials and energy
may be used. Material inputs could include water, fuel,
metals and plastics. Energy inputs may come from a
range of power sources such as coal, gas and oil.
Waste energy is likely to be in the form of heat or light.
And material outputs could include unutilised or altered
raw materials, and emissions to air, water, and land.
The Natural Step Streamlined Life Cycle Assessment
(SLCA) tool can be used to help you to establish your
baseline against the System Conditions. The tool features
a series of questions that enable you to summarise your
performance for each System Condition.
• the use of those products
• their disposal at the end of their useful life (the grave)
• the transportation logistics involved.
The SLCA has been used by ICI to define what
sustainable paint products might look like. Pret A Manger
have been using the SLCA to analyse the sustainability
of their food and drink ingredients.
Streamlined Life Cycle Assessment
For each stage of a given product, from sourcing to waste management (‘the life cycle’), a company can assess its
performance on the System Conditions, prompted by questions that stimulate innovative thinking. The priorities can
then be illustrated in a colour-coded matrix.
raw materials
production
packaging and
distribution
use
end of life
good
quite good
quite bad
bad
don’t know
Mostly positive
responses.
System condition
mostly met.
Mostly negative
responses.
System condition
mostly not met.
All answers
negative.
System condition
not met
Insufficient
knowledge to
make judgement
SC1
scarce materials
taken from the earth
SC2
man made toxic and
persistent materials
SC3
destruction and
pollution of nature
SC4
work and or
use conditions
All answers
positive. System
condition met.
9
Sustainable wealth creation: step three
3
step three
Create a vision of success
Having identified where you are in relation
to the System Conditions, you can now
work out ways in which to meet your
business objectives without infringing
the System Conditions. This sets the
aspiration of successfully creating wealth
within system limits.
Your vision should describe what your business would
look like if it didn't compromise the System Conditions.
Ideally, your business would be generating wealth by
playing an active role in contributing to environmental and
social progress. If your business is in products, you could
consider whether the function delivered by the product
could, instead, be delivered by a service.
Your vision needs to be inspiring. It should be high level
and ambitious, unhindered by detail. For instance, an
energy company’s vision could include providing an
energy service from renewable energy sources – rather
than exactly defining the technologies and how to make
the transition.
Multi-national carpet providers, InterfaceFLOR, provide a
good example of the value of a sustainability vision
10
founded on the System Conditions. They set themselves
the goal of climbing ‘Mount Sustainability’. To achieve
this, they identified seven challenges: eliminating waste,
achieving benign emissions, using renewable energy,
closing the loop, using resource-efficient transportation,
sensitising stakeholders and redesigning commerce.
InterfaceFLOR is gradually trying to switch its business
model from selling carpets to providing the service of
quality carpeting. One of the ways the company does this
is by leasing its carpet tiles and only replacing those in
worn areas, thereby avoiding replacing a whole carpet
each time there is a small area of wear.
“Interface is committed to shifting from linear
industrial processes to cyclical ones. To do this,
we use a compass to guide us, and a set of tools
to help us. They are both the result of The
Natural Step. Interface will use the four
fundamental principles of science described by
The Natural Step as a guide to reduce its impact
and footprint upon the planet. We believe that
institutions that continuously violate these
principles will suffer economically.”
Ray Anderson, CEO, InterfaceFLOR
Sustainable wealth creation: step four
4
step four
Backcast from success to come up with potential actions
The Natural Step uses an approach to
planning called ‘Backcasting’. Backcasting
enables you to develop a plan of action to
achieve your vision. It involves using your
vision of success to determine the actions
that need to be taken now. Another way of
expressing this is ‘beginning with the
end in mind.’
This is different to the more familiar forecasting approach
that is often used in business planning. Though
forecasting can be a useful tool, strategy built on
forecasts risks amplifying and repeating the problems of
the past. Backcasting is about mapping a path back from
a desirable objective – a genuine vision of success.
When applied to creating wealth within environmental
limits, Backcasting should involve setting out the steps
that need to be taken to comply with the System Conditions.
Sourcing
Supply chain management
i.e. improving the SD
perfomance of suppliers
Process
Let’s take the example of a production process. If you are
trying to transform a production process so that it does
not overstep environmental limits, you need to consider
where to focus your efforts. This means understanding
the possibilities for action at each stage of the process.
The figure below illustrates some of the ways you may be
able to reduce violations of the System Conditions at
different stages of a product lifecycle. It shows how the
design of your product can help to determine the
possibilities for improvements at all stages in the process.
Step 4 is about brainstorming actions by which the vision
can be achieved. As we discussed in Step 1, thinking
about the System Conditions can lead to an array of
potential actions. To return to the InterfaceFLOR example,
having clarified their vision and the need to address the
System Conditions, they identified numerous potential
actions in several key areas. These included reducing the
use of synthetic chemicals and materials from the Earth’s
crust by redesigning the content of their products,
reducing their need for material inputs, using recycled
materials and recycling their waste.
Consumption of product/
use of service
A. Process design and
management
Guidance to customers
on appropriate usage
e.g. efficiency of machinery
e.g. car manufacturers
could explain principles of
fuel efficient ‘eco-driving’.
B. Product design
- has upstream and
downstream influence…
…affecting the type of
materials used and where
they are sourced from.
…affecting how much
material is needed and how
efficiently it can be used.
…affecting how the
product/service is used
e.g. durability, ‘time-out’
functions etc.
Disposal
Reuse/recycle.
e.g. take back schemes
where manufacturers
collect post-consumer
waste and recycle it into
new products.
…affecting the capability
of the product to be
used/recycled.
11
Sustainable wealth creation: step five
5
step five
Create an action plan
Having prepared your list of possible actions,
you need to prioritise them. It’s impossible
to do everything at the same time. The
Natural Step Framework suggests a process
for doing this, based on three key questions:
1. Does this action (or combination of actions) contribute
to progress on all four System Conditions?
It’s important that you make progress on contraventions
of all System Conditions simultaneously, and avoid
progressing one System Condition at the expense
of another.
A good illustration of the need to consider all System
Conditions comes from the use of chlorofluorocarbons
(CFCs). When CFCs were first introduced they were
considered to be harmless on account of being non-toxic
and non-accumulative in organisms. However, their
gradual accumulation in the atmosphere resulted in
unforeseen damage to the ozone layer. This damage
could have been avoided had System Condition 2 been
adhered to by deciding not to use the kind of synthetic
chemicals that accumulate in the environment.
2. Does this action (or combination of actions) provide a
flexible platform?
A ‘flexible platform’ is one that will keep open the
opportunities for future progress. It is important to keep
your eyes on the vision of success and consider your
actions as stepping-stones for getting there, allowing you
to change your approach quickly and easily as you proceed.
12
This could apply to picking the technologies of the future:
an energy company might prefer to invest more in wind
power than in solar power because of the abundance of
wind in a particular location in comparison to sunshine.
This decision could be reversed in countries with high
solar resource and low wind levels. If an energy company
were to invest hugely in an obscure technology that would
prove difficult to mainstream, the decision is unlikely to
prove to be a flexible platform.
A flexible platform does not necessarily have to be a
perfect solution. The energy company could choose to
invest in wind turbines now, even though it knows that in
five years their design will have improved. This decision
could reflect the need to act now as well as the need to
stimulate future market innovations which could be
adopted in due course.
3. Does this action (or combination of actions) provide a
good return for investment?
Financial realities have to be taken seriously. Obviously
you will want to choose actions that are cost effective or
will create income. As well as generating profit, this will
help to generate resources for ongoing investment and
continued progress towards complying with the
System Conditions.
Sustainable wealth creation: step six
6
step six
Select the right tools for the job
The System Conditions define
environmental limits at the level of general
principles, providing you with a structure
for progressing towards sustainability.
However, in themselves they do not do
everything. The System Conditions need
to be supported by carefully selected tools,
techniques and indicators.
There are a multitude of tools and resources which
organisations can use to support their efforts to achieve
sustainability. The important thing is to recognise their
supporting role, and not let them take over. Tools should
therefore be selected according to how they help
to progress priority actions (as derived from
Steps 1 to 5) which contribute to complying with
the System Conditions.
Tools and indicators can fulfil several functions to help
plan, deliver, check, and review your efforts to comply
with the System Conditions.
• They can help to assess how processes measure up
against the System Conditions and to clarify priorities
for improvement. The Streamlined Life-Cycle
Assessment tool has been developed to do exactly this.
• They can go into more detail on the System Conditions.
For example, an energy audit could identify the extent
of a product or company’s use of fossil fuels and its
emissions of greenhouse gases, thereby clarifying an
important aspect of System Condition 1.
• They can assist in the implementation of actions, such
as following protocols to ensure the successful
management of projects.
• They can help to monitor actions. For example,
Environmental Management Systems help
organisations to ensure they are implementing their
actions as planned.
• They can help to monitor the state of the environment,
for instance, through techniques for sampling soil,
water and air quality.
The key thing is to use the System Conditions to decide
which tools and techniques will be most useful in helping
to move towards sustainability.
13
Sustainable wealth creation: conclusions and next steps
conclusions and next steps
We are currently living beyond our environmental limits
by drawing down natural capital instead of living on the
interest derived from it. As all wealth ultimately stems
from natural capital, this is not an effective strategy for
sustainable wealth creation.
Businesses will only be able to create wealth in the long
term if they operate within environmental limits. To be able
to do this they need a thorough understanding of the
principles behind environmental limits. The Natural Step
Framework sets out a clear approach to understanding
environmental limits and developing a way of living and
working within those limits. It also stresses the need to
consider social processes alongside environmental limits
– because both are crucial and interdependent.
By working towards compliance with the System
Conditions, we give our businesses the best possible
chance of avoiding the impacts of environmental and
social problems. Better still, the Natural Step Framework
can foster innovation and enhance profitability.
14
next steps
This report sets out a constructive approach to creating
wealth in a sustainable fashion. The next step is to get
started and benefit from the opportunities in doing so.
The Natural Step is a cyclical process, having embarked
upon the mission to improve performance, it’s important
to regularly renew your efforts by defining a vision and
Backcasting from success. Each iteration allows for
further advances towards a more sustainable, innovative,
and successful business model.
Our intention has been to provide a straight-forward guide
to tackling the issue of environmental limits. Nonetheless,
it may be useful to receive support in undertaking this
process. If your business is intent on showing leadership
in creating wealth within environmental limits, there may
be potential to work with Forum for the Future and
The Natural Step.
Businesses in the UK can contact Forum for the Future.
Businesses in South Africa can contact The Natural Step.
Please use the contact details provided on the inside
front cover.
Sustainable wealth creation: the system conditions
System Condition
1
Sustainable wealth creation does not contribute to systematically increasing
concentrations of substances from the earth's crust
Release of: Substances derived from mining. Unusual or rare metals and minerals are likely to be particularly problematic,
such as lead, cadmium, mercury, zinc, copper, and chrome. These substances can be present in fertilizers, electronics,
batteries, low-energy lamps, materials, packaging, machines, buildings and building sites, and so forth. This also includes
elements used in nuclear energy generation.
Hydrocarbons derived from oil, coal and gas, for instance through their use as a non-renewable energy source,
as non-recycled materials in plastics and packaging, as chemicals used in workshops (such as lubricants), and so on.
System Condition
2
Sustainable wealth creation does not contribute to systematically increasing
concentrations of substances produced by society
Release of: Persistent substances foreign to nature such as PCBs, bromine anti-flammables, certain refrigerants,
particular additives in plastics, paints, solvents, pesticides, degreasing compounds, cleaning agents, chemical waste,
medicines, dioxins.
Large emissions of substances that are already present in nature but accumulate systematically, such as oxides of carbon,
sulphur and nitrogen that are released by incineration or transportation.
System Condition
3
Sustainable wealth creation does not contribute to systematic degradation of
the biosphere by physical means
Over-harvesting (extraction at a rate which outstrips the ability of the resource to regenerate – i.e. living on natural capital
rather than interest), and poor handling of raw materials from forests, fields, rivers/lakes/seas, and so forth. This includes
over-fishing, clear cutting of forests, overuse of groundwater, bio-fuels grown on former rainforest land, soil compaction
and erosion, the importing materials which contributes to overuse of land in other countries, and so on.
Building and other physical destruction or manipulation of living systems. For instance, purchasing and developing land in
fragile natural environments and thereby causing damage to air, soil and water, habitat and wildlife, and the provision of
ecosystem services such as the filtering of water, ability to grow food and harvest fish, etc. Further examples include
hydroelectric dams which alter water flows through ecosystems, soil pollution that can impact health and contaminate
groundwater, strip-mining without subsequent restoration, and so on.
System Condition
4
Sustainable wealth creation does not contribute to conditions which
systematically undermine the capacity of people to meet their needs
Business examples include:
• Abuse of economic and political power, for instance through lack of transparency, influence, accountability, and honesty.
This applies to relationships with business partners, with employees, along the supply chain, and with customers.
This includes poor corporate governance, corruption, etc.
• Poor working environments. For example: lack of clean water or light, poor food safety, insufficient ergonomic arrangements,
exposure to health risk from hazardous chemicals, danger of robbery or physical accidents, psychological stress through
overwork, discrimination, criticism, judgement or lack of equality regarding age, gender, sexuality, race, physical capability,
etc), failure to observe human rights, use of child labour.
• Needs of suppliers’ personnel (as above).
• Customer needs (as above), plus the provision of unhealthy or insecure products, exploitative prices.
• Compromising the needs of the general public and future generations, for instance by diverting drinking water for production
purposes, high noise levels, vibrations, odours, and land-use leading to relocation and worsened possibilities for recreation.
15
Forum for the Future - the sustainable
development charity - works in
partnership with leading organisations in
business and the public sector. Our vision
is of business and communities thriving in
a future that is environmentally
sustainable and socially just. We believe
that a sustainable future can be achieved,
that it is the only way business and
communities will prosper, but that we
need bold action now to make it happen.
We play our part by inspiring and
challenging organisations with positive
visions of a sustainable future; finding
innovative, practical ways to help realise
those visions; training leaders to bring
about change; and sharing success
through our communications.
www.forumforthefuture.org.uk
Since 1988, The Natural Step has worked
to accelerate global sustainability by
guiding companies, communities and
governments onto an ecologically,
socially and economically sustainable
path. More than 70 people in eleven
countries work with an international
network of sustainability experts,
scientists, universities, and businesses to
create solutions, innovative models and
tools that will lead the transition to a
sustainable future.
www.thenaturalstep.com
ISO 14001 EMS 59526