Saturday, March 12, 2011

Natural Capitalism


              This is the Natural Capital model for our groundwater project. By following this system loop the firm should obtain an imitated ecosystem services  that allows the groundwater to be replenished after its extraction. The reason the firm should follow the model is to increase the sustainability of groundwater usage.

Definition of Natural Capital
          
              "Natural capital refers to the natural resources and ecosystem services that make possible all economic activity, indeed all life. These services are of immense economic value; some are literally priceless, since they have no known substitutes. Yet current business practices typically fail to take into account the value of these assets-which is rising with their scarcity.

The first of natural capitalism's four interlinked principles, therefore, is radically increased resource productivity. Implementing just this first principle can significantly improve a firm's bottom line, and can also help finance the other three. They are: redesigning industry on biological models with closed loops and zero waste; shifting from the sale of goods (for example, light bulbs) to the provision of services (illumination); and reinvesting in the natural capital that is the basis of future prosperity.

Natural Capitalism shows how these four changes will enable businesses to act as if natural capital were being properly valued, without waiting for consensus on what that value should be."

Reference : "A Road Map for Natural Capitalism"

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