Corporate Social Review Magazine 3rd & 4th QUARTER 2013 | Page 78

Business Buzz Creating a “Regenerative Economy” to transform global finance into a force for good What if the economy protected people and the planet? John Fullerton and Hunter Lovins John Fullerton is President of the Capital Institute, and a former managing director at JPMorgan. Hunter Lovins is President of Natural Capitalism Solutions and a professor of sustainable business. Both are members of the Steering Committee of the Alliance for Sustainability And Prosperity, and advise Richard Branson’s B-Team. Science tells us we are in ecological overshoot. We are using Earth’s resources faster than they can be regenerated. So, too, are we in economic and financial overshoot, propelled by a financial system that demands growth with no concern for the environment and little regard for human well-being. Common sense tells us that an economy that is growing by using up its material resources at an exponential rate is fundamentally misaligned with the finite boundaries of Earth’s ecosphere. Unless we shift to a new economic model, the result will be a series of mutually reinforcing crises--economic, social, and ecological--a catastrophe on a scale without historical precedent. Our modern global economy, recent crises notwithstanding, has delivered remarkable historical achievements, and prosperity (for many) unmatched in human history. Now, however, it must evolve to address the grotesquely inequitable distribution of wealth, intractable poverty in much of the world, and chronic failure to deliver living-wage jobs, all while respecting ecological boundaries. The World Bank, the International Monetary Fund, the Organization for Economic Co-operation and Development and the International Energy Agency all agree that meeting these challenges demands not merely problem solving as we’ve done in the past, but systemic change to address root causes. “”The speculative excess and ethical shortcomings of contemporary Wall Street are now legend. But wh ]Z[