NATURAL CAPITALISM

This document, a chapter from 'Natural Capitalism', argues for a fundamental shift in business and economic models to prioritize resource productivity and the preservation of natural and social capital. It critiques the polarized nature of environmental debates and proposes a 'whole-system' approach that integrates diverse worldviews to ensure long-term economic and ecological viability.

• Environmental debates are often trapped in a cycle of compartmentalized issues and media-driven conflict, which prevents the development of pragmatic solutions. This 'expert's dilemma' leaves the public confused and disheartened when scientists or experts present contradictory views on issues like CO2 emissions.
• There are four primary worldviews regarding economics and the environment: 'Blues' (free-marketers who trust technology and markets), 'Reds' (socialists focused on labor and social injustice), 'Greens' (ecosystem-focused advocates concerned with carrying capacity), and 'Whites' (synthesists who prefer local, integrated solutions over ideology). The document asserts that all four perspectives are partly correct but incomplete on their own.
• Humanity is currently experiencing 'overshoot,' where temporary improvements in living standards and life expectancy are achieved by exceeding the earth's carrying capacity and depleting natural capital. Evidence of this includes CO2 levels in the atmosphere reaching their highest point in 420,000 years due to 100 years of industrial combustion.
• A 'natural capitalism' approach requires businesses to move beyond incremental improvements and 'leapfrog' existing technologies. This shift involves treating resource productivity as a strategic advantage, which can free up capital for reinvestment in human and natural capital.
• The transition to natural capitalism requires reversing two hundred years of policies that encouraged extraction and disposal. This includes reforming trade policies to protect indigenous rights and environmental capital, and updating financial systems so that social and biological values are included on balance sheets rather than being externalized.
• There is a growing global consensus on sustainability, evidenced by tens of thousands of diverse organizations and documents—such as the Brundtland Report and the Convention on Biological Diversity—that provide common frameworks for understanding the relationship between human and living systems.

APA

RMI (n.d.). NATURAL CAPITALISM. https://rmi.org/app/uploads/2017/05/RMI_Document_Repository_Public-Reprts_NCchapter15.pdf

Chicago

RMI. NATURAL CAPITALISM. n.d. https://rmi.org/app/uploads/2017/05/RMI_Document_Repository_Public-Reprts_NCchapter15.pdf.

Wikipedia

{{cite report |author=RMI |title=NATURAL CAPITALISM |url=https://rmi.org/app/uploads/2017/05/RMI_Document_Repository_Public-Reprts_NCchapter15.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmindnatural, author = {{RMI}}, title = {{NATURAL CAPITALISM}}, institution = {RMI}, url = {https://rmi.org/app/uploads/2017/05/RMI_Document_Repository_Public-Reprts_NCchapter15.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }