Model 1: Environmental ceilings and social foundations

Since the Second World War almost every nation on Earth has shaped their economy around a single goal: growing their economy. To fuel continuous economic growth, our culture pushes us all to consume ever more resources, regardless of whether they truly support our wellbeing. The pollution and damage to land, sea and air, caused by our over-consumption of goods, services and energy has reached such levels that we are putting at risk the living systems that have allowed humanity to flourish.

An environmental ceiling, also known as a planetary boundary, defines the level of damage that an essential living system can sustain without collapsing.  Our planet has nine environmental ceilings/planetary boundaries. We have already crossed the boundaries for extinction and biodiversity loss, nitrogen and phosphorus pollution and without rapid action will soon pass the point of no return with the climate change and land use change. We must also avoid crossing the boundaries for acidification of the oceans, over-extraction of freshwater, damage to the ozone layer, aerosols in the atmosphere and pollution by toxic chemicals.

But pulling back from the brink and keeping below the environmental ceiling is not enough. We must also prioritise our use of resources in ways that support the “social foundations” for human wellbeing. These foundations are clean water, food, health, income, education, gender equality, resilience, social equity, energy, jobs and a political voice. At present, despite over-consuming our planet’s resources, our societies are failing to deliver the social foundations to huge sections of humanity.

We need re-imagine and re-shape the economy so that we can all thrive in the environmentally safe and socially just space between the environmental ceiling and the social foundation.

Inspired by the shape of this diagram, economist Kate Raworth, creator of the model, calls the economics we need ‘Doughnut Economics’. In response to Kate’s work, cities including Amsterdam, Portland and Philadelphia are exploring what ‘Doughnut Economics’ would look like and starting to change the ways they set the objectives of their economies and measure their success.

Learn more about Environmental Ceilings, Social Foundations and ‘Doughnut Economics’:

• For a deeper dive into why economic growth isn’t sustainable read this blog by Morag Watson, Director of Natural Change.
• Voted ‘Best Business Book’ in 2017, Kate Raworth’s influential bestseller Doughnut Economics: Seven Ways to Think Like a 21st-Century Economist is a very readable introduction to the shortcomings of growth economics and how the alternative would work.

• The Doughnut Economics Action Lab gathers together examples of initiatives that are turning Doughnut Economics from a radical idea into transformative action

Applying this model 1: Within our own organisations.

The goal of economic growth has cascaded through our culture to such an extent that the pursuit of growth – be it profits, size, market share, income, influence, etc. – lies at the heart of most organisations’ strategies. As sustainability leaders we need to question our organisations’ objectives; challenging any that are based on perpetual growth and championing those that are grounded in sustainability – that get us below the environmental ceiling and above the social foundation.

A good place to start is understanding your organisations’ environmental and social impact, and then taking action to improve it.

Practical help to get your organisation on the path to sustainability:

• Certified B Corps are a new kind of business that balances purpose and profit. They are legally required to consider the impact of their decisions on their workers, customers, suppliers, community and the environment. The certification process provides a helpful framework for organisations to evaluate their sustainability impact and identify areas for improvement.
• Such initiatives should build on your work to reduce the impact of the goods and services that your organisation uses. We explored this in more detail in Reality 1 where we looked at concept of the Circular Economy and the work of Zero Waste Scotland
• If you are looking for help with your organisation’s sustainability strategy, Natural Change Director Osbert Lancaster and the Realise Earth team have over two decades of experience supporting private, public and third sector organisations on their sustainability journey. Contact Osbert to discuss how we can help you.

Applying this model 2: Building momentum for change

Businesses are often seen by politicians as resistant to pro-environmental and pro-social change and with good reason given the lobbying record of some business associations. This makes it essential that businesses run by people who do care about sustainability add their voices to lobbying for real change.

Many business associations are also recognising the need for positive change. If you are already a member, find out your association’s position, encourage and influence as appropriate. If you’re considering joining one, take account of their stance alongside the other pros and cons — and let them know what’s important to you.

Practical things you can do to support wider economic change:

• This blog on five things to do about climate change (especially if you run a business) by Osbert Lancaster, Director of Natural Change and Realise Earth, gives more ideas on how to use your own actions to support wider change.
• The Wellbeing Economy Alliance is the leading global collaboration of organisations, alliances, movements and individuals working together to transform the economic system into one that delivers human and ecological wellbeing. Consider joining them and adding your support to this movement.

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Image by Kyle Glenn on Unsplash