Economies of Scale, Ecology Can't Fail
Fully Charged and Thriving, and artwork for Henoscene.
The Solution
If you haven't read the first article, detailing "The Problem" please click here.
Many who want to retain the current economic paradigm will argue that not all aspects of capitalism and economies of scale are inherently negative and that capitalism has also played a significant role in driving technological advancements, innovation, and improving living standards for many people. However, continuing down this path can only ever cope with the catastrophic cascade of negative consequences it continually gives rise to ecologically and socially. To do as we have done is to build against borrowed resources and time, essentially continuing our ridiculous game of economical Mancala and environmental Jenga with humanity and the biosphere, where we move credits from one hole we have dug for ourselves into the next one through debt swaps. We could cease play and pave a new path instead, toward creating sustainable wealth through regenerative biomimetic frameworks that promote and preserve abundance but that would mean sincere conviction toward a novel integrated approach.
Our current consumerist trajectory cannot reconcile with the natural world or with collective well-being, which means continuing to find a balance between economic growth, social equity, and environmental sustainability is a fool's errand and a pipe dream. It is a way to placate ourselves in the present by dismissing the future instead of accounting for it. The sooner we admit to this, the healthier our synergistic outcome. In acknowledging the obvious, we would be able to relinquish the patriarchal power structures in play that prioritize ego above eco, carbon-fueled economies over decarbonized ecologies and chart our course expediently away from T.S. Elliot's Wasteland and toward Thomas Moore's Utopia.
We must be honest enough with ourselves to acknowledge the current injustices and imbalances we have caused out of our cumulative ignorance, negligence, and violence toward the earth and one another. In taking stock of where we are now and how we got here, we must learn what failed to foster all life, both human and wild, and apply our learnings toward prioritizing context and community above capital and commerce.
The issues created by the Industrial Revolution and by our persistent commitment to its linear, extractive, impersonal, assembly-line model, have burgeoned a bleak landscape with complexities that demand our collective effort to resolve. We may have interjected circularity and sustainability into our supply chains, but the overall framework continues to remain archaic, and divorced from the true needs of both people and planet. We now need to see all stakeholders represented and engaged, from biodiversity, natural resources, indigenous peoples, and the Global South majority, to companies, governments, nonprofits, storytellers, creators, and consumers in co-creating models of mutualism.
Instead of looking to governments to establish and enforce stricter climate action protocols, and labor regulations and discerning legislative measures to hold companies accountable for their adverse terrestrial and marine impacts, corporations need to proactively evidence greater stewardship. Companies need to evolve past doing the bare minimum of adopting responsible business practices, advancing worker welfare, and creating transparency throughout their supply chains toward comprehensively emulating nature's processes and consanguineous networks across their entire architecture.
The earth is interlinked by blood and breath, the integrity and resilience of which remain unaccounted for in all capitalistic ventures, as they are built to serve the fiction of money before benefiting the factions they claim not to marginalize. All corporations need to question how they fundamentally add value to the finite realities of the world, instead of to the infinite fantasies construed by mankind. As consumers, we need to do more than make informed choices that support sustainable products and ethical companies, we need to dramatically dial back the ecological and social footprints of our everyday lives, by actively sacrificing convenience for coexistence and pleasures for presence. It is rare for anyone to want to be uncomfortable, yet we all claim we want to be a part of the change. What change? We perpetually do more of the same under pithy, catchy new hashtags, distracting ourselves from what is needed by continuing to do what we want. We convene at carbon-intensive, financially exorbitant, bureaucratic gatherings annually to talk about a walk that is at its best petulant, self-indulgent, unproductive poppycock, but no one wants to admit to it. This is why I sat out of COP28 in 2023 and most other intellectually saturated, application devoid, ideas bacchanals that revel in verbal masturbation.
We have been operating under the auspices of The Nash Equilibrium, seeing the earth as a non-cooperative player in our capitalistic game, where it is best to continue sticking to our guns, our initial strategy, to extract and expense the world away to meet our targets. We may have changed the name of the game but the rules of engagement are retained in their original integrity so the game is still familiar and in favor of its legacy players. So sure, we call it "regenerative models" "stakeholder capitalism" and "Net Zero Economy," but the marketing of the game continues to remain the twice-removed cousin of its state of play, i.e. execution. In this way maintaining the status quo of ever-growing profit margins and shareholder returns continues to remain the unaddressed elephant in the room.
It has always confounded me how for all that we know there is very little that we truly understand and even less we translate into action.
What if we were to transform the entire structure of how we do things? What if we rethink what we consider valuable, how we generate value, and the ways we acquisitively pursue concentrating said value into the grasp of a few instead of being distributive conduits for the continual flow of value to many?
Nature achieves economies of scale in terms of resource efficiency and other benefits through a combination of complex processes and interdependencies within its inalienably linked ecosystems. Here are a few ways nature accomplishes this without resulting in destructive outcomes:
1. Energy optimization: Nature maximizes resource efficiency by creating forms that optimize how energy flows through its entire expression. Organisms have evolved to efficiently harness and utilize energy from the environment, such as through photosynthesis in plants, which converts sunlight into chemical energy. Nature stores only what it needs, it allows the rest to pass through it and onto other organisms and systems that need the energy. This state of perpetual energy flow allows for each organism and channel to make the most efficient use of every resource it comes in contact with. No being or conduit hoards those essentials to the detriment of the whole, rather each entity and pathway is engineered with others in mind, transmuting that which it comes in contact with in readily available ways they can be best received. Optimization cannot occur without consideration of others as well as the self i.e. both the whole it belongs to and the part it plays within the greater context, if an entity or pathway is only optimal to itself, then it is detrimental to all else.
Rather than viewing resources as commodities to be stockpiled for individual gain, businesses can adopt a mindset of optimizing energy flow throughout their operations. This involves structuring processes and systems in a way that allows resources to circulate efficiently, similar to how energy flows through natural ecosystems. By prioritizing the needs of the larger ecosystem in which they operate, corporations can ensure that resources are utilized in a way that benefits not only themselves but also other stakeholders.
One key aspect of transitioning towards a more distributive model is recognizing the interconnectedness of all elements within the business ecosystem. Just as organisms in nature interact symbiotically to exchange and utilize resources, corporations can collaborate with suppliers, partners, and communities to create a more integrated and sustainable approach to resource management. This holistic view encourages sharing resources and knowledge to create mutually beneficial outcomes for all involved parties. Corporations need to stop competing against one another and work toward common goals that perpetuate social and ecological abundance.
Furthermore, corporations can break away from the zero-sum mentality ingrained in traditional economic models by embracing a more cooperative and collaborative mindset. By moving beyond the short-term focus on maximizing profits and shareholder returns, businesses can adopt a long-term perspective that prioritizes the well-being of all stakeholders, including employees, customers, and the environment. This shift towards stakeholder-centric practices promotes a more equitable distribution of resources and benefits, fostering a more balanced and resilient business ecosystem.
2. Biodiversity: High levels of biodiversity in ecosystems contribute to the most coherent distribution of resources. Different species have specialized niches and unique adaptations, enabling them to make the most of available resources. Biodiversity also helps maintain balanced ecosystems by reducing the risk of dominance by a single species, which can lead to destructive outcomes. There are no monopolies, no obscene aggregation of wealth (i.e. the creation of the one percent), no intentional deprivation of organisms (i.e. poverty), no surplus or waste, and no redundancies. Every part knows its specific role in the whole, and it does not need a two-dimensional onion diagram to discern its sense of purpose, as that is self-evident.
Corporations can learn from the concept of biodiversity in ecosystems and apply a similar logic to reorganize their structures, priorities, and hierarchies. Corporations can benefit from having a diverse workforce with employees who bring different skills, perspectives, and backgrounds to the table. This diversity can enable the company to make the most of available resources and opportunities, leading to innovation and growth.
Corporations can avoid the risks associated with a rigid, hierarchical structure by promoting a more inclusive and collaborative work environment. By reducing the concentration of power and decision-making in the hands of a few individuals, corporations can foster a culture where ideas can flow more freely, creativity can flourish, and employees feel empowered to contribute their unique talents. This can then ensure more equitable pay for all, instead of wealth concentration in the pockets of the C-Suite.
3. Nutrient cycling: Nature efficiently recycles nutrients through processes such as decomposition and nutrient uptake by different organisms. For example, decomposers break down organic matter, releasing nutrients back into the environment for uptake by plants. This cyclic process minimizes waste and ensures efficient use of resources.
Brands can design products and services with the intent of maximizing resource utilization, reuse, and recycling. By focusing on materials that can be repurposed or recycled at the end of their lifecycle, companies can significantly reduce waste generation. Corporations can embrace the circularity of materials used by ensuring all designed and packaged items can be recaptured, reused, or composted. This can involve working with suppliers to source materials that are easily recyclable or compostable and establishing take-back programs for used packaging. Packaging and products at the end of their life cycle can be engineered with other use cases in mind, which is then recommended to the consumer. By encouraging customers to return packaging for reuse or offering refill options can help reduce waste generation and promote a more sustainable consumption model.
Instead of relying on traditional plastic packaging, companies can explore biodegradable alternatives such as compostable plastics, bio-based alternatives derived from corn starch or other plant-based sources, mycelium packaging made from mushrooms, vegan leathers, or seaweed-based packaging.
Streamlining transportation routes, using eco-friendly shipping methods, and reducing packaging material waste during distribution can further reduce the environmental impact of shipping materials.
4. Mutualistic relationships: Nature often relies on mutually beneficial relationships between different organisms. For instance, pollinators and flowering plants have a mutualistic relationship, where plants provide nectar as a food source for pollinators, while pollinators assist in plant reproduction through pollination. Such symbiotic relationships optimize resource utilization without causing destructive outcomes.
Corporations could look to evolving their relationships on a macro and micro level with every human being, organism, and ecosystem in their footprint and wake, cultivating reciprocity and inevitably the equitable redistribution of resources, access, earnings, benefits, opportunities, and outcomes.
Corporations can collaborate with researchers and startups to develop innovative packaging materials and technologies that mimic natural nutrient cycles. For example, studying how nutrients are cycled in ecosystems can inspire new packaging designs that can easily biodegrade or be reused.
Brands can engender receptivity to real-time feedback from their stakeholders, and explore conduits and conversation channels that enable such active, deliberate, open, and transparent dialogue and engagement toward corroborated outcomes. I founded my startup Henoscene to embolden such interactions between brands and their stakeholders.
Promoting publicly visible, candid communication channels with all stakeholders helps build trust and advance meaningful relationships. On Henoscene for instance we encourage brands to inclusively brainstorm, co-create, champion, and co-earn from sustainable products, media, and impact outcomes that have been given rise to through stakeholder consensus.
Corporations need to create value for all stakeholders rather than solely prioritize their own growth, and profits. On the contrary, brands need to nurture long-term relationships based on symbiotic benefits. All metrics, KPIs, and OKRs set, used to evaluate, and pursued as an end goal need to be tailored to democratically represent all stakeholders' interests and custom cater to each party's needs equitably.
5. Resilience and adaptation: Nature's ability to adapt and recover from disturbances contributes to overall resource efficiency. Ecosystems have built-in mechanisms to respond to changes, adapt to new conditions, and restore balance after disturbances like natural disasters. This adaptability helps prevent damaging outcomes and allows ecosystems to efficiently use resources over the long term.
Homeostasis, the tendency toward a relatively stable equilibrium between interdependent elements, especially as maintained by physiological processes, is the default of nature, yet not the default state for brands. Corporations can behave directly at odds with the stability and balance of society, communities on the ground, and entire ecosystems if doing so lines its own pockets. Its organizational structure is not predisposed to internal checks and balances that stop it short of greed, cruelty, apathy, and ignorance. While it is unfortunate when a corporation lacks a moral compass, it is catastrophic when it lacks the self-awareness to put checks and balances in place that ensure holistic self-regulation. Without internal protocols to ensure an abuse of power and misuse of resources does not occur, there is no way for a corporation to ever be accountable to itself or others.
It's important to note that while nature demonstrates efficient resource utilization, it is not without its own limits and challenges. Human activities, such as habitat destruction and pollution, can disrupt these natural processes and lead to destructive outcomes. Therefore, it is crucial to understand and emulate these natural systems to achieve sustainable and beneficial outcomes.
Key Take Aways:
Incorporating life and living systems into corporate decision-making is crucial for businesses to move beyond basic responsible practices and truly emulate the interconnected and sustainable processes found in nature. Focusing on the integrity and resilience of Earth's fragile and finite networks and processes can lead to more ethical and effective business practices that benefit not only profitability but also the well-being of all stakeholders.
By aligning their strategies and operations with the principles of distributive resource management inspired by nature, corporations can not only enhance their sustainability and resilience but also contribute to the greater good of the entire ecosystem in which they operate. This transformative approach requires a fundamental shift in mindset, but the potential benefits of creating a more harmonious and distributive business environment far outweigh the challenges of breaking free from outdated hoarding practices.
By embracing diversity, fostering collaboration, and reducing hierarchical dominance, corporations can reorganize their structures to better adapt to changing environments, maximize resource utilization, and ensure sustainable growth in the long term.
Brands can actively seek out new materials and technologies that emulate nutrient cycles in nature. Corporations can reduce the environmental footprint of their products, packaging, and shipping practices by consciously opting out of any choices that have negative social and ecological consequences.
