Natural Capitalism
| Company type | Book |
|---|---|
| Industry | Environmental economics, Sustainability |
| Founded | 1999 |
| Founder | Paul Hawken, Amory Lovins, Hunter Lovins |
| Products | Book on environmental economics |
Natural Capitalism: Creating the Next Industrial Revolution is a 1999 publication on environmental economics authored by Paul Hawken, Amory Lovins, and Hunter Lovins. The book has been translated into several languages and was also condensed in the Harvard Business Review.
Content
The writers portray the global economy as fundamentally dependent on natural resources and ecosystem functions, critiquing conventional "Industrial Capitalism" for neglecting natural and social capital in its framework. They contend that traditional capitalism effectively "liquidates its capital and calls it income," overlooking the critical worth of natural assets and human systems that support long-term business viability.
Natural Capitalism highlights the crucial link between manufactured capital and natural capital, emphasizing that acknowledging this connection is essential for sustained economic health. The authors propose an economic model structured around sustainable business practices, describing this transformation as "the next industrial revolution."
This revolution is built upon four principal approaches: enhancing resource conservation through efficient production methods, adopting material reuse strategies inspired by nature, shifting priorities from quantity to quality, and committing to the restoration of natural capital. Contrary to traditional capitalism’s focus on financial and manufactured assets alone, Natural Capitalism integrates natural and human capital within economic metrics. Problems such as pollution and social inequality are depicted as consequences of failing to value all forms of capital properly, rather than inherent defects of capitalism itself.
The book rests on several fundamental premises:
- The potential for future economic expansion is constrained by the availability and functionality of natural capital, particularly life-supporting services that lack substitutes or market recognition.
- Depletion of natural capital results from inefficient business designs, population increases, and excessive consumption habits—all factors demanding corrective measures for sustainability.
- Sustainable advancement is most effectively achieved within democratic, market-oriented systems that comprehensively value human, manufactured, financial, and natural capital.
- Substantial improvements in resource productivity are critical to maximizing the use of labor, financial resources, and environmental assets.
- Elevating human well-being relies more heavily on enhancing service quality and delivery than solely increasing monetary flows.
- Addressing global disparities in income and material conditions is necessary to realize both economic and ecological sustainability.
Meaning of book's title
In a 2009 interview, Paul Hawken clarified that the title Natural Capitalism plays on the term "natural capital", originally introduced by E. F. Schumacher in 1973. Hawken embraced the idea of natural capital but appended "-ism" to emphasize its broader social implications.
Nevertheless, many readers misinterpreted the title, focusing on Capitalism as the central theme and assuming the authors were endorsing conventional capitalism. Hawken later expressed regret about this misunderstanding, explaining that although he supports entrepreneurship and commerce, he rejects the "pathological" characteristics associated with unfettered capitalism.
Other editions
- Zi4 ran2 zi1 ben3 lun4, Simplified Chinese version (2000, Shanghai Popular Science Press)
- Capitalismo naturale (2001, Edizione Ambiente, Milan)
- Japanese translation (2001, Nikkei, Tokyo)
- Traditional Chinese version (2002, CommonWealth, Taipei)
- Öko-Kapitalismus: Die industrielle Revolution des 21. Jahrhunderts (2002, Riemann, Munich)
- Loodus-kapitalism: uue tööstusrevolutsiooni algus (2003, Estonian edition)
- Capitalismo Natural (Editora Cultrix, São Paulo)
- Natural Capitalism: Comment réconcilier économie et environnement (2008, Scali, Paris)
- Korean edition (circa 2011, Gongjon, Seoul)