The aim of Natural Capital is to engage business, which accounts for the majority of human exploitation of the environment, as a force for valuing and restoring it. It draws on many other ideas such as environmental footprinting and social enterprise. It is based in a recognition that many decades of “traditional environmentalism” — traditionally somewhat antagonistic to business — have demonstrably and spectacularly failed to change anything.
The World Forum on Natural Capital 2015, organised by Scottish Wildlife Trust, took place ten minutes from my house. I was there as a volunteer but managed to participate in almost the whole event, although some frantic last-minute registration meant I missed the First Minister Nicola Sturgeon who, according to all the reports I heard, skilfully name-checked such an incredible number of initiatives that everyone came out feeling special. There were plenty of Scottish participants including SNH; good news of new initiatives especially the launch of the Peatland Code which could have important impacts on the Scottish landscape; and a specific Scottish Natural Capital ‘stream’ of breakout meetings which I hope to hear a report from. I think, however, that the question someone asked about how North Sea Oil fits into Scottish Natural Capital accounting, which wasn’t answered, needs to keep being asked.
I hope that the sceptical environmentalists, of whom there were many present, were won over by the possibilities even if they remained healthily critical of the claims of specific businesses and governments. “In the sustainability sector we love reinventing the wheel and preaching to the converted”, said one speaker welcoming the hundreds of business participants. “Today we have a chance not to do that”. “I’m from a financial background,” said Michael Meehan, “and I’ve been working for this convergence with environmentalism all my life — as I know many people in the business community have”.
We learned about a proliferation of initiatives to turn the theory of Natural Capital into practice. The Inclusive Wealth Index, which combines produced capital, human capital and natural capital and demonstrates that most countries are experiencing serious economic decline; Natural Captains, a Dutch-based coalition of businesses committed to leadership in Natural Capital processes; and Cradle to Cradle, one of the tools they use to improve product design, are just three.
The fact that this multiplication of experiments makes the whole area impossibly confusing especially for smaller businesses was discussed, illustrated by the clip of Robin Williams playing a Soviet immigrant to the US having a melt-down trying to choose from a whole aisle of types of coffee. The launch of the consultation on the first draft of the Natural Capital Protocol was a key event of the Forum which aims to address this issue.
We heard inspiring case studies of state-scale approaches to Natural Capital policy making. A telling graph from Botswana (below) showed how water use in different sectors had been compared to GDP and employment: either agriculture (far left) is using far too much water, or its contribution to Botswana’s society is drastically undervalued, or perhaps both.
Pakistan, a country which is one of the smallest contributors to and one of the biggest victims of climate injustice to date, has used natural capital accounting to implement state-scale strategies for climate change resilience (below), including a project to (I could have cheered at this) plant a billion trees in five years. “Resilience” was one of the key words of the project: it is why biodiversity per se is the most valuable asset we have.
An example from Canada demonstrated how collaboration is required in public-sector policymaking as much as in business: from the mountain behind our town to the sea, said one speaker, a cubic metre of water passes through six different policy regions.
What struck me as the conference went on was how radical the thinking was within the business paradigm, that is, amongst CEOs, accountants, insurance underwriters, who had no intention of closing their operations down, getting out of the way, and waiting for some kind of experiment in social organisation to emerge. “Our challenge is not to monetarise nature but to naturalise the economy” was one phrase I noted down, which was my most-shared on twitter although someone pointed out it needed a good deal of unpacking to mean anything. “We must standardise our Natural Capital accounting in a few years, not the 150 years it took global financial reporting” was another. “It’s my firm belief”, said another, “we are building a better system, which takes genuine account of environmental and social as well as financial value”. “Our current economic models are as unscientific as the flat-earth movement”, said a fourth. “We can and must change our whole concept of money and value”. The urgent need for rapid, profound, fundamental change was everywhere, and the one concept which was completely absent was any possibility of “business as usual”.
What I found most interesting, because I hear the environmental viewpoints all the time, were the contributions from the business side. The ones I noted included these. Natural Capital assets are great assets to have because if maintained properly they maintain their value, never depreciating or having to be replaced. The average life of a business is less than ten years, so the biggest sector to be engaged to create change in 20 or 40 years are businesses not yet started. (I heard a practical way to address this capacity-building issue in another session: get sustainability tools into MBAs.) “I bet he’s a pretty hard-nosed businessman though”, said my forester friend Simon as we discussed Peter Bakker of the CEO-led World Business Council for Sustainable Development. “That thing he said: ‘you can come and talk to me about anything, but you have to tell me which of the Sustainable Development Goals it relates to first'”.
Also inspiring were the large-scale examples of rapid ecosystem restoration. An experiment in creating “no-take” marine zones (initially to the chagrin of local fishermen) showed that it only took three years for fishermen to start increasing their income as the regeneration of fish in the no-take zone spilled out into neighbouring areas. The National Geographic Pristine Seas project is preserving the last remaining unexploited marine ecosystems as priceless examples of how the seas should be, yielding surprising scientific discoveries for example that the biomass of top predators (like sharks) is greater than everything else — as if the African plains had two lions for every wildebeest. “One of the most important stories I’ve ever covered”, said film-maker John Liu (below), describing such transformations in China and Mali, “is that it is possible to restore degraded ecosystems”.
One of the points made in the closing plenary was that these extraordinary stories of nature’s restoration, which inspire people to participate in ‘doing their bit’ are far too rarely told compared to disaster stories which cause people to give up.
I am most personally grateful to the Forum for its coffee breaks where I met all sorts of wonderful people for the first time: Angelika Końko from the Forestry Commission, Maggie Keegan of Scottish Wildlife Trust, James Nikitine of Green TV, Matthew Roy of Greener Leith, Nicky Chambers of the Future Centre and Alex Kinninmonth of Scottish Wildlife Trust amongst others.
What do I hope the Forum will achieve? One small hope of mine is it might provoke the venue, the Edinburgh International Conference Centre, to consider its natural capital management – especially if the Forum takes place there for the third time in 2017. I walk through its environs almost every day and always imagine what it could be like if the piazzas were ‘de-paved’, with more trees, wild-flower beds and flowering shrubs humming with pollinators and birds and soaking up the perpetual puddles which block my path.
I also noticed the EICC lights were halogen, tangibly warming the rooms beneath: when we calculated the energy savings of switching from halogen to LED’s at St John’s Church just around the corner, we found the payback time was so short that the replacement was made instantly. I did, however, love the EICC’s classy tap-water dispensers which I hope appear at all conferences not just sustainability ones — although as someone pointed out, you could make havoc with a bottle of vodka…
I had one reflection as a historian. Most references to “the current system”, our capitalist economy, seemed to assume that it was the problem, an unprecedented new curse creating an unprecedented new crisis. This was the implication of the speaker from the Netherlands, when he put up an image (below) of the charter of the first (Dutch) commercial company in 1606, commenting that this model of business which separates money and ideals was no longer sufficient.
But one speaker gave a different narrative. Every civilisation in human history has met with the fate we face: they over-reached their natural resources and collapsed. The only unprecedented thing about our predicament is that our civilisation is planetary. People nodded sagely at both these narratives, but they conflict. Moreover, the second narrative (which I find much more historically satisfactory) challenges the oft-repeated idea that “traditional cultures” can provide alternative models of human existence we can use. They are not civilisations; and whether we like it or not, we are. Our challenge is to be the first civilisation in history not to destroy itself.
I put this to Nicky Chambers in the final coffee break, and she said, “As a biologist, I’d go further: the challenge is, can we do better than yeast?” The environmental crisis is not just a crisis of civilisation: it is a crisis of humanity. We are at the point where we prove whether we are, or aren’t, in any way more intelligent or moral than yeast, eating up its food source until it runs out and dies. At the World Forum on Natural Capital, every mind was focused on demonstrating that we are.
I hope to hear more reflections, plans, and outcomes of the World Forum on Natural Capital. “I insist you go out of these doors as a leader”, said Jonny Hughes in the final plenary. If the 500+ delegates (not to mention us volunteers) took that insistence to heart, armed with the information and connections we made in the last two days — well, I always said I believed in miracles.