NATURAL CAPITALISM

The text explores the application of 'lean thinking'—the systematic elimination of 'muda' (waste)—to business operations and the broader economy. It advocates for 'service and flow,' where companies provide the function of a product as a service rather than selling the physical object. This shift is presented as a way to align the interests of providers and customers toward resource productivity, reduce the volatility of the business cycle, and minimize environmental impact through dematerialization and closed-loop systems.

• Lean thinking is defined by four inter-linked elements: the continuous flow of value as defined by the customer, the pull of the customer, a search for perfection, and the elimination of 'muda' (waste).
• Traditional 'batch-and-queue' production and the optimization of individual machines in isolation often lead to systemic inefficiency. For example, a windshield production process involving multiple shipping and reheating stages can take over 100 days and travel nearly 1,500 miles, most of which is waste.
• Right-sizing production equipment to match the rate of customer pull can significantly increase value. In the electric power sector, decentralized power sources are estimated to be about tenfold more valuable than traditionally assumed due to uncounted effects of scale.
• The 'service and flow' business model replaces the sale of products with the direct provision of the service the customer desires. This aligns the interests of both parties toward increasing resource productivity, as the provider earns more by using fewer inputs to deliver the same result.
• Interface transitioned from selling carpet to leasing floor-covering services via the 'Evergreen Lease,' replacing only worn tiles. This reduced material requirements by approximately 80%. Their 'Solenium' product further reduces the net flow of materials and embodied energy by 97% compared to standard nylon broadloom carpet.
• A shift to a 'solutions economy' could create a 'post-cyclical economy' by dampening the volatility of the business cycle. By shortening lead times and removing the incentive to 'churn' assets, firms can eliminate the need for permanent average excess capacity.

APA

RMI (n.d.). NATURAL CAPITALISM. https://rmi.org/app/uploads/2017/05/RMI_Document_Repository_Public-Reprts_NCchapter7.pdf

Chicago

RMI. NATURAL CAPITALISM. n.d. https://rmi.org/app/uploads/2017/05/RMI_Document_Repository_Public-Reprts_NCchapter7.pdf.

Wikipedia

{{cite report |author=RMI |title=NATURAL CAPITALISM |url=https://rmi.org/app/uploads/2017/05/RMI_Document_Repository_Public-Reprts_NCchapter7.pdf |access-date=23 October 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_NCchapter7.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }