Natural Capitalism Modules for MBA Programs

2003 WRI BELL ConferenceChristina Page

Rocky Mountain Institute

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about RMI

An nonprofit research and consulting organization that fosters the efficient and restorative use of resources.

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Principles of Natural Capitalism

1. Radically increased resource productivity

2. Biomimicry: closed loops, no waste, no toxicity

3. Shift from products to services

4. Reinvest in natural capital

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Natural Capitalism for MBA Students

• Pilot modules with Professor Tom Dean of CU Boulder in fall 2003

• Graduate and undergraduate students in business

• In Phase II, expand to other schools and programs

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Natural Capitalism for MBA Students

• Detailed Natural Capitalism examples students can examine & discuss in-depth

• Integration with core MBA skills (marketing, strategy, operations, finance)

• Tools for addressing real-life barriers

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Shift from Product to Service

ZipCar• Short -term, frequent use• “Mobility service”

without the hassles of car ownership (parking, repair, etc.)

• Vehicles suited to purpose

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Product to Service and Marketing

Zipcar markets convenience and affordability -- sustainability is not the leading point

“Don’t lead with your green chin!”

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Economics & Reinvesting in Natural Capital

New York City needed to upgrade their drinking water system …

A new water filtration plant would have cost them $6-$8 billion, plus annual maintenance fees of $300-

$500 million.

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Instead, City is investing in the integrity of the watershed by purchasing land as buffers &

upgrading local sewage treatment plants

…Cost = $1.7 billion

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Addressing Barriers: Payback Requirements

Know how to find the low-hanging fruit

Simple concepts: framing in terms of Internal Rate of Return instead of Simple Payback

Whole systems thinking: for an efficiency program, include both energy and non-energy benefits

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Rocky Mountain Institute

Chris Pagecpage@rmi.org970/927-7323

http://www.rmi.org