Hunter Lovins

Natural Capitalism Solutions

INOVATION

© NCS 2017

Quality vs Innovation

Jack Welch saved GE $12 billion with Six Sigma

Jeff Immelt made GE$160 billion with Ecomagination since 2005

May 2005 GE $(135 billion in annual revenue) "We believe we can help improve the environment and make money doing it," GE Chairman Jeffrey Immelt GE announced it would spend $.5 billion, then $1.5 billion a year to research conservation, pollution and reduction of greenhouse gases.

Joining Immelt for the announcement were executives from such mainline corporations as American Electric Power, Boeing and Cinergy.

May 2007 Sales of GE’s Ecomagination products doubled to $12 billion in next two years, with back orders for $50 billion more, “will blow away" the original goal of $20 billion by 2010.

Overall sales at GE grew just over 20 per cent to $163 billion. GE reduced greenhouse gas emissions by 4% in 2006, Original target 1% before 2012.

May 2010 Revenues rose to over $25 billion in 2010. GE to cut its emissions by 22 percent in 2009 compared to its initial goal of one percent in 2004. By 2015 GE will cut energy intensity of its operations by 50%. In annual letter to shareholders, Immelt reported: "Ecomagination is one of our most successful crosscompany business initiatives. If counted separately, 2009 ecomagination revenues would equal that of a Fortune 130 company and ecomagination revenue growth equals almost two times the company average.”

2010

"The 80 product lines in ecomagination tallied $17 billion in sales last year, a 21% jump over 2007, even as most of the conglomerate’s other divisions treaded water or went backwards. GE aimed for $25 billion in sales in the unit that year, despite the tough economic environment.”

RE < C

“By the way, in 2011, GE's wind turbines achieved RE less than C for the first time. It really happened. Now we're designing super efficient and flexible combined cycle gas turbines that will compliment renewable intermittency, while we work on energy storage technologies. Solar is next...”

Edwin Land “People who seem to have had a new idea have often just stopped having an old idea.”

The Nine Dots Problem

The Nine Dots Problem

The Nine Dots Problem

origami solution

geographer’s solution

mechanical engineer’s solution

statistician's solution

wide line solution

Edwin Land

Invention is, “… a sudden cessation of stupidity.”

Thinking Differently When NASA first started sending up astronauts, they quickly discovered that ball-point pens would not work in zero gravity. To combat this problem, NASA scientists spent a decade and $12 billion developing a pen that writes in zero gravity, upside down, underwater, on almost any surface including glass and at temperatures ranging from below freezing to over 300 C. The Russians used a pencil.

True quality is the difference between innovation and stupid

When is an action innovative, or reckless?

If we insist on ruining the planet, we have to stop calling ourselves a superior species

Dr. Sylvia Earle: “What we do in the next ten years is more important than what humanity does in the next 10,000 years”

Principles of Natural Capitalism

1. Buy Time Buy time by using resources dramatically more productively

2. Redesign Redesign industrial processes and the delivery of products and services to do business as nature does

3. Regenerate Manage all institutions to be regenerative of natural and human capital

Economic Realities: Saving energy strengthens the entire economy

STMicro-electronics’ Goals Zero net CO2 emissions by 2010 40-fold increase in production over 1990 Commitment to this goal has taken the company from the #12 chipmaker to the #6

Set 2010 goal of 15% renewable energy 55% cogeneration and 30% conventional Won 04 Best Industrial Renewable Energy Partnership from EU When ST is climate neutral, it will have saved $900 million

DuPont’s Goals

Since 1990 have kept energy use the same and increased production 30%

GHGs from global Cut greenhouse gas emissions operations are down 67% 65% 1990–2010 Global energy use 9% below Raise revenues 6%/y 2000–10 1990 levels with no increase in energy use Savings of $2 billion over 12 By 2010, 10% of energy & 25% year of feed stocks from renewables On track with renewables

The second principle can drive your innovation The approach of biomimicry asks, Janine Benyus Author Biomimicry

“How does nature do business?”

Nature as model, measure & mentor Biomimicry is a new way of viewing and valuing nature, based not on what we can extract from the natural world, but on what we can learn from it. Janine M. Benyus

How does nature do business? Nature uses: • Low energy flows •Sunlight • No persistent toxics •Near Body manufacturing •Ambient temperature manufacturing •Closed loops, in which everything is recycled •Nature shops locally

Computer Recycling (?)

Club of Rome study on social benefits of circular economy What would carbon emissions and job opportunities be if Finland, France, the Netherlands, Spain and Sweden: Enhanced energy efficiency by 25% Increased renewable portion in the energy mix by cutting fossil fuel use by 50% Enhanced material efficiency by 25% overall increase and replaced 50% of virgin materials with secondary materials + doubling the life-time of long-lived consumer products compared to today Would cut carbon emissions by 70% Employment increase by more than hundred thousand jobs (3% of the Swedish work force)

Velcro, a synthetic interlocking device, was modeled after the grappling hooks of seeds.

A shoe manufacturer wanting to design a better hiking shoe…

Sure-footed mountain goats cradle rocks with their hooves due to soft-inner pads.

How does nature stay sure-footed?

The sole of Nike’s GoatTek, a rock-scrambling shoe, mimics the hoof structure with soft and firm tread.

Spiders make silk, stronger than steel and tougher than Kevlar, from digested crickets and flies, at room temperature without boiling sulfuric acid and high-pressure extruders.

The Abalone excretes proteins that assemble an electrically charged framework on which seawater deposits minerals, forming a crystalline inner shell twice as tough as ceramics - all accomplished in ambient temperature water, with zero waste.

How would you design a sewage plant if you had to live downwind?

Eco Machines Eco Machines™ turn sewage into clean water and flowers.

Dr. John Todd

Eco Machine™ at Oberlin College

The Body Shop had an Eco Machine™ in its boutique in Toronto

Nature creates conditions conducive to life

The Ultimate Evidence: Synthetic Compounds Found In Mother’s Milk HALOGENATED COMPOUNDS chlorodifluoromethane chlorotrifluoromethane dichlorofluoromethane chloromethane trichlorofluoromethane dichloroethylene Freon 113 methylene chloride chloroform 1,1,1 – trichloroethane carbon tetrachloride trichloroethylene chloropentane chlorobenzene iodopentane 3-methyl-1-iodobutance chloroethylbenzene dibromodichloromethane dichlorobenzene trichlorobenzene

ALDEHYDES acetaldehyde methyl propanal n-butantal methylbutanal crotoaldehyde n-penanal n-hexanal furaldehyde n-heptanal benzaldehyde n-octanal phyenyl acetaldehyde n-nonanal methyl furaldehyde n-decanal n-undecanal n-dodecanal

KETONES acetone methyl ethyl ketone methyl propyl ketone methyl vinyl ketone ethyl vinyl ketone 2-pentanone methyl pentanone methyl hydrofuranone 2-methyl-3-hexanone 4-heptaonone 3-heptaonone 2-heptaonone methyl heptaonone furyl methyl ketone octanone acetaphenone 2-nonanone 2-decananone alkylated lactone phthalide

OXYGENATED ISOMERS C4H6O C4H8O C5H10O C4H6O2 C7H10O C7H14O2 C6H6O2 C6H16O C7H8O2 C9H18O C8H6O2 C10H12O2 C10H14O C10H16O C10H18O CH10H20O C10H22O C9H8O

ALCOHOLS methanol isoproponal n-proponal 1-butanol 1-pentanol x-furfuryl alcohol 2-ethyl-1-hexanol phenol 2,2,4trimethylpenta1,3-diol x-terpineol ACIDS acetic acid decanonic acid

Nature as mentor Design that adopts the experience of life, refined by 3.8 billion years of rigorous testing. All products that didn’t work were recalled by the Manufacturer.

The future is already here;

it’s just not widely distributed. William Gibson

We have all the technologies we need to solve all the challenges facing humanity

Dr. Mark Jacobson’s Solutions Project

How fast can a shift to renewables happen? World will be 100% solar by 2030, says Tony Seba, Stanford Professor and Silicon Valley entrepreneur,

www.tonyseba.com

Fifth Ave NY Easter Morning 1913 Where is the horse?

Fifth Ave NY Easter Morning 1900 Where is the car?

How the world has changed

Tesla is valued at more than GM – despite producing 300 times fewer cars

It’s a battery company

Aliso Canyon Battery deployment

Dubai commissioned 800 MW solar and wind at ~2.9/kWh

Butte College – 75% renewable Could be first college in the U.S. to generate more electricity than it uses.

It would gain $50-$75 million for academic programs if the utility would let it.

Low tech solutions

“This is the era of renewables”

“Alarming fall in cost of solar”

“Fossil fuels further up the cost curve are most at risk, and new projects built now will face competition with new technologies within the first quarter of their anticipated 25-year life. These project entail significantly more risk than is widely recognised”

“With no technological breakthroughs cost reduction will continue, with costs of 4-6 c/kWh expected by 2025, and 2-4 c/kWh by 2050.” Change is happening fast. In 2014, CA increased utility-scale solar from1.9% of its electricity to 5%. “Most scenarios underestimate the role of solar power in future energy systems.”

Saudis announce $2 trillion mega-fund to finance transition out of oil – plan to be world’s largest solar exporter

We have achieved a universal legal agreement to limit future man-made climate change, the greatest existential threat to life on earth

A recent paper in Nature showed that to keep warming below 2 degrees C, emissions reduction is necessary, but that ways must be found to capture carbon and return it to the soil

Long Root Ale

Wyoming – both taken same day

Left-side upstream, managed holistically - 260% stocking increase in10 years

Right-side is downstream land managed ‘conventionally’

White Oak Pastures Profitable 2,500 acre farm Committed to Holistic Management 137 employees - largest privately owned employer in the county. Breathed new life into 200-year-old farm village, Bluffton, that had slipped almost into oblivion.

White Oak Pastures: De-commoditized- produce 5 pastured red meat proteins, 5 pastured poultry proteins, pastured eggs, Certified Organic vegetables. De-industrialized- not monocultural factory. but living ecosystem. 10 species of humanely treated animals live in symbiotic relationships with each other. The land is holistically managed to become a living organic medium teeming with life. De-centralized- Own abattoirs to vertically integrate production system. Full control over humane quality

Gabe Brown numbers Runs cows, sheep, broiler hens ($5 a pound for these) corn costs him $1.35 to produce, it’s now selling at ~$3.50 Cannot keep up with demand Started in 1993 with shallow soils, 1.3% organic matter. In ‘95 started no-till, diversifying cash crop, using rotations. In 1997 focused on cover crops. In 2006 planting multi-species cover crops, mob grazing and different livestock species. 2013, have plot with 11.1% organic matter – can increase soil health fast If healthy soil will have clean water, clean air, healthy plants animals and people – healthy ecosystem

2013 UNCTAD report Modern industrial agriculture has not ended hunger and is particularly vulnerable to climate change Small-holder peasant farmers could easily feed the populations of developing countries with existing labor-intensive, environmentally friendly agricultural technologies— were it not for corruption, extreme inequality, and misguided attempts to impose inappropriate “modern” crops and techniques.

A greener economy already employs almost 3 million - more than fossil fuel It could create between 15 million to 60 million jobs worldwide over the next two decades At least half of the global workforce will be affected in some way by 2030 2012 ILO

Young Professionals 96% of workers aged 18-35 want to work for a responsible and greenminded company. -Johnson Controls Global Workplace Innovation

Intent TO PAY MORE CONSUMERS UNDERPurchase 34 ARE WILLING FOR SUSTAINABLE BRANDS 66% of millennials are willing to pay more for sustainable brands

• • • •

Baby boomer: 33% Millennial: 66% gen z : 66% Likelihood of purchase intent

2014 CDP report: S&P 500 companies that build sustainability into their core strategies outperform those that fail to show leadership. Corporations that are actively managing and planning for climate change secure an 18% higher return on investment (ROI) than companies that aren’t 67% higher than companies who refuse to disclose their emissions.

Sustainable Living Brands:

GREW FASTER THAN THEY DID IN 2014

DELIVERED NEARLY HALF THE GROWTH

#collectiveaction

GREW 30% FASTER THAN THE REST OF THE BUSINESS

Creating whole new institutions

Bard MBA in Sustainable Management Integrates sustainability into all the core business classes

The second mouse gets the cheese

Natural Capitalism Solutions L O N G M O N T, C O L O R A D O

Email: [email protected] Visit: www.natcapsolutions.org

Regenerative Future Summit May 15-17, 2017 Boulder, CO Join 300 executives, entrepreneurs, and change agents to reframe the economy and develop action plans to implement a regenerative future.

Dr. David Orr

Mark Eckhardt

Dr. Robert Costanza

Dr. Kate Raworth

Daniela IbarraHowell

Randy Hayes

www.RegenerativeFutureSummit.org

We are failing to meet basic human minimums

Inequality

Almost half of the world’s wealth now owned by just one percent of the population

We are called to be architects of the future, not its victims. Buckminster Fuller

Who Are We? Paul Lawrence – Four Drivers Drive to acquire Drive to defend Drive to bond

Drive to comprehend

Greener Solutions Approach • Demand side management • Consumer demand • Load shaping or load management

• Why do we need X? • Who cares about X 2 (stakeholder engagement) • Why do we use X in the first place? • Can the need for X be eliminated based on our understanding of the system?

• Material substitutions • Dematerialization • Reverse logistics

3 Can demand on the system be reduced or changed?

4

Reduce or eliminate the impact

5 Close the loops

Define Problem Statement

1 Understand Your System

• Value chain ecosystem mapping, knowing your system • Input/Output analysis • “LCA Light” • Mass balance • Carbon footprint • Ecological Footprint • Chemicals of Concern

• Identify the inefficiencies and byproducts that are created by the system • Look for “who wants what you don’t want” • Create value from waste streams

6 Re-design • Biomimicry opportunities • Supply “system” versus chain opportunities • Irresistibly sustainable design

27

Design for human productivity We need to design for well-being We are only getting a clue on how to do this Well-being is where green building was 15 years ago – if you sold lights, then CFL’s were the solution, if you sold AC then HVAC was the solution. The industry now sells standing desks and non-toxic furniture and calls it wellbeing

Design to solve real problems Don’t focus only on kbtu/sq ft, Focus on occupant health, and on resource efficiency per unit of use

Don’t solve only to cut costs, but to maximize human and organizational performance

Even high performance buildings waste space dollars and energy if they are not fully utilized On average 66% of fully leased seats are vacant during business hours – you heat them, lamp them, furnish them, insure them, provide security and they are empty This is daft Fixing it is a huge business opportunity

Alliance for Sustainable Colorado Retrofit of 1908 building One of five first LEED Dynamic Plaque 50 organizations; 200 individuals Mission to advance sustainability In Colorado

Alliance for Sustainable Colorado Uber-green building that was a bummer to be in Designed to maximize low utility bills to cut carbon footprint – zero waste, hyperefficient lighting

Not designed for people

Pre-Renovation energy efficiency

• Disintegrated Design • Failing HVAC system estimated @ $1M

• Extensive energy efficiency measures cut annual utility bill cut to $60/yr • Energy Star 85 • LEED Silver CI

• LEED Gold EBOM v4

But it was ugly, poorly lit, stuffy and largely unused

Expanded Integrated Design Design Goals • Improve human and organizational performance • Optimize floor plate use • Increase owner ROI

Source: Gensler

THE SEVEN CONCEPTS OF THE WELL BUILDING STANDARD®

Design for well-being

LEED Gold Dynamic Plaque communicates real-time performance to users in intuitive, efficient manner Monitoring and displaying progress in water & energy meters through Energy Star Waste, VOC and CO2 Surveying for transportation reductions Most important: Human Experience

Collaborative space in center, quiet spaces on exterior with daylight

People matter: • Alliance focused on what people need and want to innovate and produce • Increased office capacity from 120 people to 260 • Doubled revenue • Increased appraised value from $6 million to $14 million • Held events for 30,000 people last year, all of which spread the mission – politicians who want the environmental community all came to the Alliance

Each person must see himself as though the entire world were held in balance and any deed he may do could tip the scales Maimonides