Shah & Anchor Kutchhi Engineering College Department Of Management Studies

Topic: Natural Capitalism

Group Members: Rohan Kadam Naushad Chauhan Viral Shah Hiren Gadda Gaurang Sanghavi Vignessh Nath Milind Bharwada

What is Natural Capitalism?

Natural Capitalism can be defined as the worlds stocks of

natural assets which include geology, soil, air, water and all living things. It is from this Natural Capital that humans derive a wide range of services, often called ecosystem services, which make human life possible.

Why is Natural Capital an issue?

With Financial capital: When we spend too much we run up debt,

which if left unchecked can eventually result in bankruptcy

With Natural Capital: When we draw down too much stock from

our natural environment we also run up a debt which needs to be paid back,
For example by replanting clear-cut forests, or allowing aquifers to

replenish themselves after we have abstracted water

Allowing or encouraging nature to recover Effects of Overexploiting Natural Capital

Natural Capitalism The journey to Natural Capitalism involves four major shifts in business practices, all virtually interlinked.

Principle 1:RADICAL RESOURCE PRODUCTIVITY

Cornerstone of natural capitalism Has Three significant benefits: It slows resource depletion at one end of the value chain, lowers pollution at the other end, and provides a basis to increase worldwide employment with meaningful jobs The result can be lower costs for business and society, which no

longer has to pay for the chief causes of ecosystem and social disruption

Principle 2: Biomimicry Operating Vision

Shift production to biologically- inspired patterns that close

materials loops, eliminate waste and toxicity, and minimize throughput. Nature as model, measure and mentor

Living Machine (Oberlin College, Ohio)

Principle 3: Service Solutions and Service Business Model

A solutions-based business model that delivers value as a

continuous flow of services rather than the sale of goods rewarding both the provider and the customer for doing more and better with less for longer.

Product as Service
Agfa Gaevert leasing photocopiers (copier company

owns/maintains copier) Carrier Corporation (United Technologies)-comfort lease and retains ownership of A/C unit Interface, Inc. leasing the comfort, beauty, warmth of floor coverings Schindler leasing vertical transportation services!

Product as Service
The Right Incentives are Created! Minimization of materials/

resources (continuous increases in resource productivity) Maximize product durability Enhanced ease of maintenance Could stabilize business cycle (constant $ flow) Protect manufacturers investment & bottom line Happy customer

Principle 4: Reinvest in Natural Capital

Reinvest in restoring, sustaining, and expanding our own

natural habitat and biological resource base Otherwise, shortages of ecosystem services are likely to become the limiting factor to prosperity in the future Nature does the production Working with nature is more productive than working against it

An organization using Natural Capitalism will

Incorporate Natural Capitalism principles into Core Strategy Realize that solutions lie in understanding the

interconnectedness of problems and not in confronting them in isolation Seek a common framework of understanding about the functions of earth and the dynamics of society Comprehensively plan for a future with natural capital and human capital appropriately valued

Thank You