Regenerative_Enterprise_Excerpt_Dec2016
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This document introduces the concept of regenerative enterprise, which aims to produce wealth while increasing ecosystem health. It notes that global ecosystems are rapidly degrading due to human activities, threatening biodiversity and human well-being. The authors propose a new model called the "Eight Forms of Capital" that recognizes financial, social, material, living, intellectual, experiential, cultural and spiritual capital. They argue that infinite growth of financial capital requires loss of other capital forms. The document advocates for enterprises that mimic natural ecosystems to regenerate multi-capital abundance.
Regenerative_Enterprise_Excerpt_Dec2016
- 1. Regenerative Enterprise Optimizing for Multi-Capital Abundance Version 1.0 Ethan Roland Soloviev & Gregory Landua
- 2. Regenerative Enterprise: Optimizing for Multi-Capital Abundance Regenerative Enterprise Optimizing for Multi-Capital Abundance - Version 1.0 Print Format ©2013 Ethan Roland Soloviev & Gregory Landua. All Rights Reserved. No part of this book may be used or reproduced without written permission except in cases of brief quotations embodied in articles and books. The information in this book is true and complete to the best of our knowledge. All recommendations are made without guarantee on the part of the authors and the publisher. The authors and publisher disclaim any liability in connection with the use or misuse of the information. Holistic Management® is a registered trademark of Holistic Management International. GROW BIOINTENSIVE® is a registered trademark of Ecology Action. Excerpts from A Brief History of Everything, by Ken Wilber, © 1996 by Ken Wilber. Reprinted by arrangement with The Permissions Company, Inc., on behalf of Shambhala Publications Inc., Boston, MA. www.shambhala.com. For Regenerative Enterprise updates, consulting, and speaking engagements, visit regenterprise.com Regenerative Enterprise2
- 3. Contents 1. Thesis and Assumptions 5 2. Global Degradation 7 3. The Eight Forms of Capital 9 Thank you for reading the excerpt of 12 Regenerative Enterprise: 12 Optimizing for Multi-Capital Abundance 12 To download or purchase the full version, 12 please visit: 12 www.regenterprise.com 12 4. Regeneration Defined 13 Extraction vs. Cultivation 14 Edges & Connections 15 Harvesting the Surplus vs. Stealing the Core 18 5. Regenerative Enterprise 21 The Four Nurture Capitals 22 Financial Capital to Living Capital 23 External & Internal Development 25 Ecosystem Mimicry 31 6. Regenerative Enterprise Ecologies 33 Multi-capital Optimization 35 “Sustainable” / Living & Dying 37 Financial Capital Flows: Opportunity & Investment 38 7. Global Imperatives 41 The Personal Imperative 41 The Trade Imperative 43 The Capital Imperative 44 Ethan Roland Soloviev & Gregory Landua 3
- 4. Regenerative Enterprise: Optimizing for Multi-Capital Abundance 8. Principles for Regenerative Enterprise 47 9. Conclusion and Invitation 53 About the Authors 59 References 61 Index 65 Regenerative Enterprise4
- 5. 1. Thesis and Assumptions Thesis and Assumptions We live in the anthropocene era, a time of rapid global change dominated by the actions of the human species. Politically,1 economically, and ecologically, we exist as a global society. Never before has our level of interconnection been so international and so influential. Sudden changes in the government, economy, or environment of any nation quickly reverberate throughout the rest of the world. Capitalism is the most prevalent and powerful economic system on the planet. The amount of money and financial wealth in the world is increasing exponentially, as required by capitalism’s dependence on continued economic growth. At the same time, global ecosystems are degrading. The fundamental basis of human productivity (the land, water, and soil under our feet) is being damaged, polluted, and eroded at an increasingly rapid rate. Contributing to both trends is our growing human population, which requires more resources to sustain than ever before in history. We (the authors of this book) are entrepreneurs, ecologists, and global citizens. We believe in democracy, enterprise, and the incredible power of individuals and groups to envision and create the world they want to live in. We believe that there is a rational way that humans can exist on the planet, one that reverses current trends and actually increases the health of all ecosystems and living beings. Working from within the current system of capitalism over the last decade, we have Ethan Roland Soloviev & Gregory Landua 5 Chapter 1
- 6. Regenerative Enterprise: Optimizing for Multi-Capital Abundance witnessed and developed enterprises that demonstrate the power of business for creating good in the world. We believe that enterprises are the most effective tool for creating positive change. Through clear vision, hard work, and innovative business models, they carry massive potential for global regeneration. Our thesis is that enterprises can be created that produce wealth while increasing the health and vitality of living human communities and the ecosystems in which they live. These enterprises will produce multi-capital abundance by mimicking natural ecosystems and collaboratively forming multi-entity alliances: Regenerative enterprise ecologies. In this book, we articulate the context of global degradation, the conceptual underpinnings of a new model of capital, and the definition of regeneration. We then develop the theoretical and practical requirements for regenerative enterprises, entrepreneurs, and enterprise ecologies. We conclude with three global imperatives and a clear set of principles that invite well-designed and effective action. Regenerative Enterprise6
- 7. 2. Global Degradation Global Degradation According to the Millennium Ecosystem Assessment, more than 60% of global ecosystem services are being degraded or used unsustainably. The basic ecosystem functions that supply what humans2 and other species require to survive are crumbling around us: from the provisioning of food, water, fiber and fuel to the regulation of climate, floods, droughts, and diseases. The breakdown of ecosystem services threatens countless species with extinction – projected extinction rates in the next 40 years are between 10,000 - 100,000 times that of the historical record.3 This degradation of ecosystems is also causing significant harm to human well-being around the world. Loss of land- and sea-based4 livelihoods due to ecosystem degradation cost billions of dollars each year, levels of poverty remain high, and inequities are growing. Many people still do not have a sufficient supply of or access to ecosystem services, especially in vulnerable coastal, island, and tropical areas of5 the planet. Many of the trends in degradation will be exacerbated by rapid climate change we are experiencing. The Intergovernmental Panel on Climate Change Special Report on Extreme Weather predicts an overall increase in droughts, floods, heat waves, and hurricanes around the world. These extreme events will incur billions of dollars in damages and untold harm to human health Ethan Roland Soloviev & Gregory Landua 7 Chapter 2
- 8. Regenerative Enterprise: Optimizing for Multi-Capital Abundance and well-being, especially in coastal areas. In 2012, exceptional drought6 and ‘super storm’ Sandy grounded these severe warnings into reality, even in the financially affluent United States. Culturally, we are also living in a time of rapid degradation. The world’s languages are disappearing at a rate even faster than that of biological diversity, with some estimating that 90% of all existing languages (nearly 7000) will be either dead or moribund within the century. With many of the unique beliefs, stories, songs, seeds, and7 foods connected to each language disappearing, this loss of languages represents an incredible loss of culture. Many of these languages are spoken by indigenous peoples, whose lands and lifeways are threatened on a daily basis by our current extractive global society. A recent World Wildlife Fund study named the 200 places on earth that have the highest and most fragile biodiversity, and found that 95 percent of them are on Indigenous territories. Yet8 those same Indigenous lands are routinely raided for minerals, timber, farmland, oil, and other resources. Governments give industries concessions to use Indigenous land without ever consulting the Indigenous groups who live there, and in almost no case do Indigenous Peoples benefit from the financial income generated by this activity.9 As cultures and ecosystems degrade around us on a global scale, some of the worst effects harm the world’s poorest people and are sometimes the principal factor causing poverty. This is painfully and10 graphically illustrated in India, where each year thousands of farmers who depend on healthy productive ecosystems are committing suicide because of economic, social, and environmental factors exacerbated by degraded ecosystem services.11 In this context of ecological and cultural degradation, one trend seems to be heading in the opposite direction: There is exponentially more money in existence than there ever has been before. Ecosystems12 are degrading at increasing rates, and the amount of money is increasing – what’s going on here? Regenerative Enterprise8
- 9. The Eight Forms of Capital 3. The Eight Forms of Capital I n 2 0 0 9 , t h e a u t h o r s developed a new economic map to fully conceptualize and account for the world’s multiplicity of resource flows: The Eight Forms of Capital. Even as the soils erode13 away, biodiversity plummets, and ecosystems reel from the shocks of species loss, fragmentation, and climate change, economists and governments insist that economies must ‘keep growing’. How is this possible? Can our global society truly continue to grow forever? The infinite growth required by our current global system is primarily an infinite growth of one form of capital: financial. The Eight Forms of Capital economic model recognizes that there are other forms: social, material, living, intellectual, experiential, cultural and spiritual capital. We propose that the ongoing growth of financial capital is only possible through the loss of other forms of capital. The current global society is organized and controlled primarily through the flow of financial capital, but the survival of any human or society depends primarily on living capital and the material capital that arises from it: food, water, energy, and shelter. It is the cooperation and collaboration of people in the forms of villages, tribes, regions and nations that support each other to successfully gather these provisions of ecosystem services and transform them into the goods and services that underly the global economic system. Ethan Roland Soloviev & Gregory Landua 9 Chapter 3
- 10. Regenerative Enterprise: Optimizing for Multi-Capital Abundance The Eight Forms of Capital provides a clear framework to understand this global web of interactions and transactions. The Eight Forms of Capital can be summarized as follows:14 • Social Capital - Connections, relationships, and influence. Can be complexed to webs of social indebtedness. • Material Capital - Non-living physical objects: Timber, minerals, metals, fossil fuels. Can be complexed to plastic & electronic products, and further into structures, infrastructure, and technologies. • Financial Capital - Money, currency, securities, and other instruments. Currently, facilitates the exchange of goods and services. • Living Capital - Soil, water, animals, plants, human health and the health of other organisms, complexed to the ubiquitous ecosystems of which humans are a part. • Intellectual Capital - Ideas, concepts, knowledge, “truth”. Held primarily in the human neocortex, intellectual capital is highly valued in the current society. • Experiential Capital - Actual embodied ‘know-how’, built from personal experience. • Spiritual Capital - Sometimes expressed as karma, faith or presence, spiritual capital is defined by an entity’s internal Regenerative Enterprise10 Figure 3.1 - The eight forms of capital.
- 11. connection and awareness of a greater whole. Spiritual capital is often complexly intertwined with cultural context and Cultural Capital. • Cultural Capital - Shared internal and external experiences of a group of people: Cultural capital is an emergent property of the complex inter-capital exchanges in a community, village, city, bioregion, or nation. Story, myth, song, and art are tangible manifestations of cultural capital – they are also sometimes liquidated and exchanged for other forms of capital, usually financial. Pools of capital can be held and developed by multiple entities, and various flows can occur within and between each form of capital: The sum total of global inter- and intra-capital exchanges is the current economic system. The international trend is to deplete the pools of most forms of capital while exponentially increasing the amount of financial capital. This mono-capital trajectory has significant impacts on the sustainability of current and future generations. Ethan Roland Soloviev & Gregory Landua 11 Figure 3.2 - Multi-capital pools and flows.
- 12. Regenerative Enterprise: Optimizing for Multi-Capital Abundance Thank you for reading the excerpt of Regenerative Enterprise: Optimizing for Multi-Capital Abundance To download or purchase the full version, please visit: www.regenterprise.com Regenerative Enterprise12