when did you last time change your mind not on something minor but on a deeper
not on something minor but on a deeper
not on something minor but on a deeper belief
belief
belief did you ever shake your head over a
did you ever shake your head over a
did you ever shake your head over a belief that you’ve had in the past say
belief that you’ve had in the past say
belief that you’ve had in the past say that the moon is made out of cheese or
that the moon is made out of cheese or
that the moon is made out of cheese or that the market can solve all problems
that the market can solve all problems
that the market can solve all problems of society can you still remember what
of society can you still remember what
of society can you still remember what it felt like when you saw the world was
it felt like when you saw the world was
it felt like when you saw the world was completely different eyes
completely different eyes
completely different eyes for the first time and how did it come
for the first time and how did it come
for the first time and how did it come to you did come very slowly did it grow
to you did come very slowly did it grow
to you did come very slowly did it grow over years or was it an Erica moment and
over years or was it an Erica moment and
over years or was it an Erica moment and you ran through town like Archimedes did
you ran through town like Archimedes did
you ran through town like Archimedes did at this time over the last 20 years I
at this time over the last 20 years I
at this time over the last 20 years I changed my mind
changed my mind
changed my mind step by step and I came to the
step by step and I came to the
step by step and I came to the conviction that our collective next 20
conviction that our collective next 20
conviction that our collective next 20 years have to be about a disruption
years have to be about a disruption
years have to be about a disruption about a good disruption from an economic
about a good disruption from an economic
about a good disruption from an economic system that destroys natural systems to
system that destroys natural systems to
system that destroys natural systems to one where natural systems rive it’s over
one where natural systems rive it’s over
one where natural systems rive it’s over 20 years ago that I left business school
20 years ago that I left business school
20 years ago that I left business school it was quite a change for me when I
it was quite a change for me when I
it was quite a change for me when I arrived because I had been working at a
arrived because I had been working at a
arrived because I had been working at a geologists before in a world of very
geologists before in a world of very
geologists before in a world of very complex geological systems and all of a
complex geological systems and all of a
complex geological systems and all of a sudden I was in a world where everything
sudden I was in a world where everything
sudden I was in a world where everything that was outside the model was called
that was outside the model was called
that was outside the model was called non-linearity
non-linearity
non-linearity well my professional life the last 20
well my professional life the last 20
well my professional life the last 20 years have very much spent in the world
years have very much spent in the world
years have very much spent in the world of nonlinearities of very complex
of nonlinearities of very complex
of nonlinearities of very complex systems a lot is happening in 20 years
systems a lot is happening in 20 years
systems a lot is happening in 20 years this is Fidelis she is the secret CEO of
this is Fidelis she is the secret CEO of
this is Fidelis she is the secret CEO of our family and she’s turning 20 today
many of those 20 years I spent in one of
many of those 20 years I spent in one of the world’s leading consultancies
the world’s leading consultancies
the world’s leading consultancies helping companies to become more
helping companies to become more
helping companies to become more efficient and I enjoyed it to the utmost
efficient and I enjoyed it to the utmost
efficient and I enjoyed it to the utmost I enjoyed the firm I enjoyed the work I
I enjoyed the firm I enjoyed the work I
I enjoyed the firm I enjoyed the work I enjoyed the freedom that I got to build
enjoyed the freedom that I got to build
enjoyed the freedom that I got to build the global sustainability practice of
the global sustainability practice of
the global sustainability practice of McKinsey but it also opened my eyes and
McKinsey but it also opened my eyes and
McKinsey but it also opened my eyes and it started to form a view
it started to form a view
it started to form a view that the economy can work differently no
that the economy can work differently no
that the economy can work differently no it must marked differently according to
it must marked differently according to
it must marked differently according to an utterly different paradigm who of you
an utterly different paradigm who of you
an utterly different paradigm who of you has read Thomas Kuhn structure of a
has read Thomas Kuhn structure of a
has read Thomas Kuhn structure of a scientific revolution he was the first
scientific revolution he was the first
scientific revolution he was the first one to talk about paradigm shift we do
one to talk about paradigm shift we do
one to talk about paradigm shift we do have explanatory models that help us to
have explanatory models that help us to
have explanatory models that help us to understand our reality and then all of a
understand our reality and then all of a
understand our reality and then all of a sudden we are making observations that
sudden we are making observations that
sudden we are making observations that don’t seem to be congruent to that model
don’t seem to be congruent to that model
don’t seem to be congruent to that model to that paradigm and so we call it an
to that paradigm and so we call it an
to that paradigm and so we call it an inert anomaly and then there are more of
inert anomaly and then there are more of
inert anomaly and then there are more of those anomalies and all of a sudden the
those anomalies and all of a sudden the
those anomalies and all of a sudden the paradigm is getting into crisis we are
paradigm is getting into crisis we are
paradigm is getting into crisis we are finding a new paradigm and the old one
finding a new paradigm and the old one
finding a new paradigm and the old one dies
dies
dies I think the point I was wanted to make
I think the point I was wanted to make
I think the point I was wanted to make today is that we need to find a new
today is that we need to find a new
today is that we need to find a new paradigm in the way we think about
paradigm in the way we think about
paradigm in the way we think about economic growth all the way towards the
economic growth all the way towards the
economic growth all the way towards the mid 80s all the major lead indicators of
mid 80s all the major lead indicators of
mid 80s all the major lead indicators of the economy were developing in sync and
the economy were developing in sync and
the economy were developing in sync and since then we are seeing a major
since then we are seeing a major
since then we are seeing a major divergence a great divergence and that
divergence a great divergence and that
divergence a great divergence and that is starting to hit our life today two of
is starting to hit our life today two of
is starting to hit our life today two of the dynamic gaps on this chart are in
the dynamic gaps on this chart are in
the dynamic gaps on this chart are in fact doing that the one is the
fact doing that the one is the
fact doing that the one is the difference between labour productivity
difference between labour productivity
difference between labour productivity and median family income and it could be
and median family income and it could be
and median family income and it could be that the eruptive power of some of the
that the eruptive power of some of the
that the eruptive power of some of the political changes that we have seen over
political changes that we have seen over
political changes that we have seen over the last today two years have in fact to
the last today two years have in fact to
the last today two years have in fact to do with that and the second dynamic gap
do with that and the second dynamic gap
do with that and the second dynamic gap is that between GDP growth and any
is that between GDP growth and any
is that between GDP growth and any reasonable measure of society’s progress
reasonable measure of society’s progress
reasonable measure of society’s progress like the genuine progress indicators
like the genuine progress indicators
like the genuine progress indicators which is stagnating or it’s even
which is stagnating or it’s even
which is stagnating or it’s even declining and that has to do with the
declining and that has to do with the
declining and that has to do with the massive costs of growth we are growing
massive costs of growth we are growing
massive costs of growth we are growing poor and that’s different when
poor and that’s different when
poor and that’s different when externalities get bigger than the
externalities get bigger than the
externalities get bigger than the benefits that is a new paradigm that is
benefits that is a new paradigm that is
benefits that is a new paradigm that is a rubber rabbit and no more a duck so
a rubber rabbit and no more a duck so
a rubber rabbit and no more a duck so let’s talk about growth we can’t talk
let’s talk about growth we can’t talk
let’s talk about growth we can’t talk about growth without celebrating it was
about growth without celebrating it was
about growth without celebrating it was in the 20th century our global GDP grew
in the 20th century our global GDP grew
in the 20th century our global GDP grew from 1.2 trillion to 47 trillion 40
from 1.2 trillion to 47 trillion 40
from 1.2 trillion to 47 trillion 40 times and even in the last 20 years it’s
times and even in the last 20 years it’s
times and even in the last 20 years it’s rippled it took a billion people out of
rippled it took a billion people out of
rippled it took a billion people out of poverty and today we are commanding
poverty and today we are commanding
poverty and today we are commanding materials and goods and possibilities
materials and goods and possibilities
materials and goods and possibilities that even Emperor’s could only dream of
that even Emperor’s could only dream of
that even Emperor’s could only dream of a hundred years ago not to celebrate
a hundred years ago not to celebrate
a hundred years ago not to celebrate that would be cynical at best
that would be cynical at best
that would be cynical at best but particularly because Rose is so
but particularly because Rose is so
but particularly because Rose is so important we need to understand what are
important we need to understand what are
important we need to understand what are the deeper drivers that takes us into
the deeper drivers that takes us into
the deeper drivers that takes us into the territory of growth theory or better
the territory of growth theory or better
the territory of growth theory or better neoclassical growth here Robert Solow he
neoclassical growth here Robert Solow he
neoclassical growth here Robert Solow he taught us it’s all about capital
taught us it’s all about capital
taught us it’s all about capital accumulation and labor however it’s only
accumulation and labor however it’s only
accumulation and labor however it’s only describing 30 to 50 percent of growth
describing 30 to 50 percent of growth
describing 30 to 50 percent of growth and the rest we very politely called the
and the rest we very politely called the
and the rest we very politely called the solo residual very few series get away
solo residual very few series get away
solo residual very few series get away with that by the way there’s a new
with that by the way there’s a new
with that by the way there’s a new generation of economists which is asking
generation of economists which is asking
generation of economists which is asking themselves what could be alternative
themselves what could be alternative
themselves what could be alternative explanations Exedy that’s their answer
explanations Exedy that’s their answer
explanations Exedy that’s their answer they said that is natural resources put
they said that is natural resources put
they said that is natural resources put to work put to useful work in other
to work put to useful work in other
to work put to useful work in other words we have over the last 200 years
words we have over the last 200 years
words we have over the last 200 years since the beginning of the Industrial
since the beginning of the Industrial
since the beginning of the Industrial Revolution just put many natural
Revolution just put many natural
Revolution just put many natural resource and energy to work in our
resource and energy to work in our
resource and energy to work in our economy a resource for an answer and
economy a resource for an answer and
economy a resource for an answer and that sounds very intuitive in a way and
that sounds very intuitive in a way and
that sounds very intuitive in a way and that’s very important to know at a
that’s very important to know at a
that’s very important to know at a moment where we want to have more growth
moment where we want to have more growth
moment where we want to have more growth because we are growing less less decade
because we are growing less less decade
because we are growing less less decade after decade over the last years we have
after decade over the last years we have
after decade over the last years we have seen less growth in our cities economies
seen less growth in our cities economies
seen less growth in our cities economies and if we want to accelerate growth and
and if we want to accelerate growth and
and if we want to accelerate growth and if we do that with the old natural
if we do that with the old natural
if we do that with the old natural resource intensive way of growing there
resource intensive way of growing there
resource intensive way of growing there is a risk that we are running almost a
is a risk that we are running almost a
is a risk that we are running almost a combustion engine hotter and hotter and
combustion engine hotter and hotter and
combustion engine hotter and hotter and that we are countering the positive
that we are countering the positive
that we are countering the positive benefits of growth and that we are
benefits of growth and that we are
benefits of growth and that we are growing poor and that’s exactly what we
growing poor and that’s exactly what we
growing poor and that’s exactly what we see once we have 2% of growth over the
see once we have 2% of growth over the
see once we have 2% of growth over the last 20 decades if you go with a more
last 20 decades if you go with a more
last 20 decades if you go with a more modern definition of what wealth really
modern definition of what wealth really
modern definition of what wealth really could be which is the sum of the wealth
could be which is the sum of the wealth
could be which is the sum of the wealth that we have in terms of social capital
that we have in terms of social capital
that we have in terms of social capital natural capital and manufactured capital
natural capital and manufactured capital
natural capital and manufactured capital then in fact we have been declining 0.2
then in fact we have been declining 0.2
then in fact we have been declining 0.2 percent every year so that is the
percent every year so that is the
percent every year so that is the massive cost that’s accounted for in
massive cost that’s accounted for in
massive cost that’s accounted for in those numbers that comes with climate
those numbers that comes with climate
those numbers that comes with climate change that comes with water scarcity
change that comes with water scarcity
change that comes with water scarcity with ocean pollution all the loss of
with ocean pollution all the loss of
with ocean pollution all the loss of biodiversity we have 60 years of topsoil
biodiversity we have 60 years of topsoil
biodiversity we have 60 years of topsoil left now what’s the way out of that let
left now what’s the way out of that let
left now what’s the way out of that let me start with what is not the way out of
me start with what is not the way out of
me start with what is not the way out of it we won’t grow ourselves green
it we won’t grow ourselves green
it we won’t grow ourselves green at least we won’t grow ourselves green
at least we won’t grow ourselves green
at least we won’t grow ourselves green automatically the shorthand for that
automatically the shorthand for that
automatically the shorthand for that discussion is the cut net curve and the
discussion is the cut net curve and the
discussion is the cut net curve and the observation that as we grow richer our
observation that as we grow richer our
observation that as we grow richer our resource intensity actually decreases
resource intensity actually decreases
resource intensity actually decreases but you can see it immediately it’s
but you can see it immediately it’s
but you can see it immediately it’s visually evident that the peak is just
visually evident that the peak is just
visually evident that the peak is just far too high and this is plastic we
far too high and this is plastic we
far too high and this is plastic we could have shown it for cement for
could have shown it for cement for
could have shown it for cement for aluminium for power the peak is by far
aluminium for power the peak is by far
aluminium for power the peak is by far too high it comes by far too late it’s
too high it comes by far too late it’s
too high it comes by far too late it’s by far too flat post peak and that
by far too flat post peak and that
by far too flat post peak and that they’re by far too many large economies
they’re by far too many large economies
they’re by far too many large economies on this side of the curve so that can’t
on this side of the curve so that can’t
on this side of the curve so that can’t be the answer what could be the answer
be the answer what could be the answer
be the answer what could be the answer he could be in the architecture of an
he could be in the architecture of an
he could be in the architecture of an answer and one of the pillars on the
answer and one of the pillars on the
answer and one of the pillars on the left-hand side should in fact fill us
left-hand side should in fact fill us
left-hand side should in fact fill us with confidence it’s abundant clean
with confidence it’s abundant clean
with confidence it’s abundant clean energy and who would have thought five
energy and who would have thought five
energy and who would have thought five to ten years ago that this for the first
to ten years ago that this for the first
to ten years ago that this for the first time is a thinkable future that we do
time is a thinkable future that we do
time is a thinkable future that we do have a default alized
have a default alized
have a default alized energy sector for the first time it’s
energy sector for the first time it’s
energy sector for the first time it’s not close let’s face it
not close let’s face it
not close let’s face it but it’s thinkable that by mid-century
but it’s thinkable that by mid-century
but it’s thinkable that by mid-century we will have a default life energy
we will have a default life energy
we will have a default life energy sector but that’s not good enough on the
sector but that’s not good enough on the
sector but that’s not good enough on the right hand side we need in the same way
right hand side we need in the same way
right hand side we need in the same way as we are d fossilize in our energy
as we are d fossilize in our energy
as we are d fossilize in our energy sector we need to dematerialize or
sector we need to dematerialize or
sector we need to dematerialize or decouple our industrial sector and we
decouple our industrial sector and we
decouple our industrial sector and we have to make all the natural resources
have to make all the natural resources
have to make all the natural resources we are taking to use an asset and a
we are taking to use an asset and a
we are taking to use an asset and a material backbone and to use it over and
material backbone and to use it over and
material backbone and to use it over and over again but even that is not good
over again but even that is not good
over again but even that is not good enough out of those we need to build the
enough out of those we need to build the
enough out of those we need to build the new systems the high-performing economic
new systems the high-performing economic
new systems the high-performing economic system mobility system food system
system mobility system food system
system mobility system food system housing systems that create prosperity
housing systems that create prosperity
housing systems that create prosperity and only if we see that those systems
and only if we see that those systems
and only if we see that those systems generate prosperity we will have we will
generate prosperity we will have we will
generate prosperity we will have we will change our norm we will see the rabbit
change our norm we will see the rabbit
change our norm we will see the rabbit over the duck and we will we believe
over the duck and we will we believe
over the duck and we will we believe that there is something like decoupled
that there is something like decoupled
that there is something like decoupled gross and that there is something like
gross and that there is something like
gross and that there is something like in that positive system is this a dream
in that positive system is this a dream
in that positive system is this a dream or is this a political reality a
or is this a political reality a
or is this a political reality a political option two years ago the
political option two years ago the
political option two years ago the European Union asked exactly that
European Union asked exactly that
European Union asked exactly that question and we had the chance a friend
question and we had the chance a friend
question and we had the chance a friend of mine Ellen MacArthur a world record’
of mine Ellen MacArthur a world record’
of mine Ellen MacArthur a world record’ yachts woman who started the Ellen
yachts woman who started the Ellen
yachts woman who started the Ellen MacArthur Foundation and myself to put a
MacArthur Foundation and myself to put a
MacArthur Foundation and myself to put a lock in the fire in front of the
lock in the fire in front of the
lock in the fire in front of the European Commission and we didn’t start
European Commission and we didn’t start
European Commission and we didn’t start to talk about the environment
to talk about the environment
to talk about the environment and we didn’t start to talk about
and we didn’t start to talk about
and we didn’t start to talk about resource dependency and we could because
resource dependency and we could because
resource dependency and we could because Europe is hugely resource dependent 760
Europe is hugely resource dependent 760
Europe is hugely resource dependent 760 billion of resource imports every year
billion of resource imports every year
billion of resource imports every year we talked about the economic opportunity
we talked about the economic opportunity
we talked about the economic opportunity and we talked about the structural waste
and we talked about the structural waste
and we talked about the structural waste which is sitting in our system which we
which is sitting in our system which we
which is sitting in our system which we could relieve and we have taken the
could relieve and we have taken the
could relieve and we have taken the three most efficient and matura systems
three most efficient and matura systems
three most efficient and matura systems of the European economy the mobility
of the European economy the mobility
of the European economy the mobility mobility system the food system and the
mobility system the food system and the
mobility system the food system and the housing system and let’s just see what
housing system and let’s just see what
housing system and let’s just see what it what it does the mobility system
it what it does the mobility system
it what it does the mobility system where scars are so efficient that we
where scars are so efficient that we
where scars are so efficient that we have to start cheating as we all know
have to start cheating as we all know
have to start cheating as we all know the system is full of inefficiencies a
the system is full of inefficiencies a
the system is full of inefficiencies a car’s parked 92% of its time out of 5
car’s parked 92% of its time out of 5
car’s parked 92% of its time out of 5 seats only 1.2 or 1.5 are typically used
seats only 1.2 or 1.5 are typically used
seats only 1.2 or 1.5 are typically used out of the energy that we put into a car
out of the energy that we put into a car
out of the energy that we put into a car only 20% actually makes it to the wheel
only 20% actually makes it to the wheel
only 20% actually makes it to the wheel and only a surgeon’s of that is used to
and only a surgeon’s of that is used to
and only a surgeon’s of that is used to transport us 50% of our cities is used
transport us 50% of our cities is used
transport us 50% of our cities is used for traffic space although even during
for traffic space although even during
for traffic space although even during rush hour only 10% of that is covered
rush hour only 10% of that is covered
rush hour only 10% of that is covered let’s look at the food system only 5% of
let’s look at the food system only 5% of
let’s look at the food system only 5% of the nutrients that we apply to the field
the nutrients that we apply to the field
the nutrients that we apply to the field are actually making it into the human
are actually making it into the human
are actually making it into the human body not always to our best health by
body not always to our best health by
body not always to our best health by the way and go for the housing system
the way and go for the housing system
the way and go for the housing system where even on a Tuesday morning only 40
where even on a Tuesday morning only 40
where even on a Tuesday morning only 40 percent utilization is marked so if you
percent utilization is marked so if you
percent utilization is marked so if you look at it all together a European good
look at it all together a European good
look at it all together a European good only has a lifetime of typically 9 years
only has a lifetime of typically 9 years
only has a lifetime of typically 9 years at the end of those nine years only 5%
at the end of those nine years only 5%
at the end of those nine years only 5% of the energy or material value that
of the energy or material value that
of the energy or material value that sits in it is actually recovered and we
sits in it is actually recovered and we
sits in it is actually recovered and we started to accept that it’s a social
started to accept that it’s a social
started to accept that it’s a social norm that’s the duck during those nine
norm that’s the duck during those nine
norm that’s the duck during those nine years of lifespan only 50% it’s utilized
years of lifespan only 50% it’s utilized
years of lifespan only 50% it’s utilized for the reason that I just did I just
for the reason that I just did I just
for the reason that I just did I just spoke about so by all intents and
spoke about so by all intents and
spoke about so by all intents and purposes even in Europe and even in a
purposes even in Europe and even in a
purposes even in Europe and even in a very efficient economy we are still very
very efficient economy we are still very
very efficient economy we are still very resource intensive and very inefficient
resource intensive and very inefficient
resource intensive and very inefficient when it comes on a system level the
when it comes on a system level the
when it comes on a system level the second point that we made is technology
second point that we made is technology
second point that we made is technology can change that because we have it at
can change that because we have it at
can change that because we have it at our fingertips the iPhone the smartphone
our fingertips the iPhone the smartphone
our fingertips the iPhone the smartphone allows us to share the massive cost
allows us to share the massive cost
allows us to share the massive cost degradation that we have seen in
degradation that we have seen in
degradation that we have seen in renewable energies allows us to build
renewable energies allows us to build
renewable energies allows us to build distributed generation or the Internet
distributed generation or the Internet
distributed generation or the Internet of Things is allowing us to track
of Things is allowing us to track
of Things is allowing us to track materials and put them back to use
materials and put them back to use
materials and put them back to use exponential technology we’ve seen how
exponential technology we’ve seen how
exponential technology we’ve seen how technology is different can disrupt
technology is different can disrupt
technology is different can disrupt information sector such as banking such
information sector such as banking such
information sector such as banking such as retail such as the media sector for
as retail such as the media sector for
as retail such as the media sector for the first time now it’s hitting the
the first time now it’s hitting the
the first time now it’s hitting the physical sectors and we ask ourselves
physical sectors and we ask ourselves
physical sectors and we ask ourselves what could technology actually do to
what could technology actually do to
what could technology actually do to transform these sectors a mobility
transform these sectors a mobility
transform these sectors a mobility system which for the first time is
system which for the first time is
system which for the first time is autonomous it’s shared it’s connected
autonomous it’s shared it’s connected
autonomous it’s shared it’s connected it’s electrified and it’s designed for
it’s electrified and it’s designed for
it’s electrified and it’s designed for reuse and the answer is by 2050 we could
reuse and the answer is by 2050 we could
reuse and the answer is by 2050 we could in fact have the same service for only
in fact have the same service for only
in fact have the same service for only 20% of the cost not less resources but
20% of the cost not less resources but
20% of the cost not less resources but less cost for the user this is a major
less cost for the user this is a major
less cost for the user this is a major wage increase to the European family
wage increase to the European family
wage increase to the European family similar for food the building var or the
similar for food the building var or the
similar for food the building var or the build environment and many of those
build environment and many of those
build environment and many of those levers we generate share optimize loop
levers we generate share optimize loop
levers we generate share optimize loop virtualized exchanged those levers that
virtualized exchanged those levers that
virtualized exchanged those levers that actually massively decouple us from
actually massively decouple us from
actually massively decouple us from resource use are in fact in the money
resource use are in fact in the money
resource use are in fact in the money and some of those businesses are that
and some of those businesses are that
and some of those businesses are that are taking advantage of those drivers
are taking advantage of those drivers
are taking advantage of those drivers amongst the fastest growing that at
amongst the fastest growing that at
amongst the fastest growing that at least I am aware of the third point we
least I am aware of the third point we
least I am aware of the third point we made is technology doesn’t take us there
made is technology doesn’t take us there
made is technology doesn’t take us there alone we do know historically that on
alone we do know historically that on
alone we do know historically that on the one hand there rebounds effect it’s
the one hand there rebounds effect it’s
the one hand there rebounds effect it’s getting cheaper and we use more of it
getting cheaper and we use more of it
getting cheaper and we use more of it and secondly we do know that system
and secondly we do know that system
and secondly we do know that system innovation travels much more slowly than
innovation travels much more slowly than
innovation travels much more slowly than product innovation and there is a risk
product innovation and there is a risk
product innovation and there is a risk that we are introducing those
that we are introducing those
that we are introducing those technologies into the old system and
technologies into the old system and
technologies into the old system and over the way that does not address the
over the way that does not address the
over the way that does not address the stress the structural waste that’s built
stress the structural waste that’s built
stress the structural waste that’s built into the system so we need to look for
into the system so we need to look for
into the system so we need to look for principles in the circular economy the
principles in the circular economy the
principles in the circular economy the circular regenerative economy is
circular regenerative economy is
circular regenerative economy is providing some of those principles it’s
providing some of those principles it’s
providing some of those principles it’s an economy that does not know waste
an economy that does not know waste
an economy that does not know waste waste is food and it’s one where finite
waste is food and it’s one where finite
waste is food and it’s one where finite resources are in fact controlled
resources are in fact controlled
resources are in fact controlled principle number one it’s one where all
principle number one it’s one where all
principle number one it’s one where all the resources that we are taking into
the resources that we are taking into
the resources that we are taking into use are maximized in their use principle
use are maximized in their use principle
use are maximized in their use principle number two and where we are avoiding
number two and where we are avoiding
number two and where we are avoiding negative spillovers into other systems
negative spillovers into other systems
negative spillovers into other systems altogether principle number three
altogether principle number three
altogether principle number three and we do that by taking all durables in
and we do that by taking all durables in
and we do that by taking all durables in a cycle to make sure that can be used
a cycle to make sure that can be used
a cycle to make sure that can be used over and over again like my watch or on
over and over again like my watch or on
over and over again like my watch or on the consumable side we are designing
the consumable side we are designing
the consumable side we are designing them in such a way that they can safely
them in such a way that they can safely
them in such a way that they can safely reenter the biosphere like my shirt the
reenter the biosphere like my shirt the
reenter the biosphere like my shirt the fourth point that we made is that this
fourth point that we made is that this
fourth point that we made is that this is an economy where which provides or
is an economy where which provides or
is an economy where which provides or that which provides very good
that which provides very good
that which provides very good instructions for how to build future
instructions for how to build future
instructions for how to build future systems and so we modeled them very
systems and so we modeled them very
systems and so we modeled them very concretely with 200 engineers we try to
concretely with 200 engineers we try to
concretely with 200 engineers we try to find out what would this mobility system
find out what would this mobility system
find out what would this mobility system the housing system the food system look
the housing system the food system look
the housing system the food system look like and not only is it providing the
like and not only is it providing the
like and not only is it providing the services much cheaper to the European
services much cheaper to the European
services much cheaper to the European family it also and brings our resource
family it also and brings our resource
family it also and brings our resource requirements massively down as you would
requirements massively down as you would
requirements massively down as you would expect and it also allows us to stay
expect and it also allows us to stay
expect and it also allows us to stay within the 2 degrees centigrade corridor
within the 2 degrees centigrade corridor
within the 2 degrees centigrade corridor that we committed to in Paris but more
that we committed to in Paris but more
that we committed to in Paris but more than that when we modelled the results
than that when we modelled the results
than that when we modelled the results we also find strong indications that
we also find strong indications that
we also find strong indications that this will be a driver of growth across
this will be a driver of growth across
this will be a driver of growth across Europe we think that until 2030 there
Europe we think that until 2030 there
Europe we think that until 2030 there will be an extra 7% of girls
will be an extra 7% of girls
will be an extra 7% of girls that’s half a percentage point a year
that’s half a percentage point a year
that’s half a percentage point a year that doesn’t sound a lot but just think
that doesn’t sound a lot but just think
that doesn’t sound a lot but just think back 30 years ago when Europe created
back 30 years ago when Europe created
back 30 years ago when Europe created the internal market that was and thank
the internal market that was and thank
the internal market that was and thank God it did that was against the promise
God it did that was against the promise
God it did that was against the promise of half a percentage point extra growth
of half a percentage point extra growth
of half a percentage point extra growth so you could look at the circular
so you could look at the circular
so you could look at the circular regenerative economy for Europe as a
regenerative economy for Europe as a
regenerative economy for Europe as a project a political and economic project
project a political and economic project
project a political and economic project of the same order of magnitude and
of the same order of magnitude and
of the same order of magnitude and that’s why politicians like it Finland
that’s why politicians like it Finland
that’s why politicians like it Finland Sweden the Netherlands Denmark
Sweden the Netherlands Denmark
Sweden the Netherlands Denmark China are starting to adopt it eureka
China are starting to adopt it eureka
China are starting to adopt it eureka time the Vice President of the European
time the Vice President of the European
time the Vice President of the European Commission says that the circle economy
Commission says that the circle economy
Commission says that the circle economy is a mega trend just as globalization
is a mega trend just as globalization
is a mega trend just as globalization and business leader leaders like it
and business leader leaders like it
and business leader leaders like it because they see that this is an economy
because they see that this is an economy
because they see that this is an economy the circular economy that will outgrow
the circular economy that will outgrow
the circular economy that will outgrow global GDP that you want to be invested
global GDP that you want to be invested
global GDP that you want to be invested into and still we are not investing
into and still we are not investing
into and still we are not investing ourselves into the circular economy
ourselves into the circular economy
ourselves into the circular economy capital flows are far too slow we are
capital flows are far too slow we are
capital flows are far too slow we are losing the race and we are continuing to
losing the race and we are continuing to
losing the race and we are continuing to be into a
be into a
be into a viral of natural capital degradation we
viral of natural capital degradation we
viral of natural capital degradation we are long on the linear economy and we
are long on the linear economy and we
are long on the linear economy and we are short on the circular economy one
are short on the circular economy one
are short on the circular economy one linear economy which is very epic
linear economy which is very epic
linear economy which is very epic instead of plastic and plastic packaging
instead of plastic and plastic packaging
instead of plastic and plastic packaging globally we are producing 300 million
globally we are producing 300 million
globally we are producing 300 million tons anything between 8 and 12 million
tons anything between 8 and 12 million
tons anything between 8 and 12 million are entering the ocean today my team has
are entering the ocean today my team has
are entering the ocean today my team has calculated that in 2022 there will be 3
calculated that in 2022 there will be 3
calculated that in 2022 there will be 3 kilograms of fish – 1 kilogram of
kilograms of fish – 1 kilogram of
kilograms of fish – 1 kilogram of plastic in 2040 – it’s 1 kilogram of
plastic in 2040 – it’s 1 kilogram of
plastic in 2040 – it’s 1 kilogram of plastic – 1 kilogram of flesh that’s a
plastic – 1 kilogram of flesh that’s a
plastic – 1 kilogram of flesh that’s a future that no one can want and it comes
future that no one can want and it comes
future that no one can want and it comes with massive costs to communities –
with massive costs to communities –
with massive costs to communities – ecosystems and also to the brand owners
ecosystems and also to the brand owners
ecosystems and also to the brand owners that are operating in the chain and
that are operating in the chain and
that are operating in the chain and that’s at the moment where we do know
that’s at the moment where we do know
that’s at the moment where we do know the answers it’s decoupling ourselves
the answers it’s decoupling ourselves
the answers it’s decoupling ourselves from virgin feedstock it’s about
from virgin feedstock it’s about
from virgin feedstock it’s about designing for reusability recyclability
designing for reusability recyclability
designing for reusability recyclability or bearded degradation and it’s about
or bearded degradation and it’s about
or bearded degradation and it’s about setting up the system that stop it from
setting up the system that stop it from
setting up the system that stop it from leaking into the environment so why
leaking into the environment so why
leaking into the environment so why doesn’t it happen over 20 years of
doesn’t it happen over 20 years of
doesn’t it happen over 20 years of McKinsey I came to the conclusion that
McKinsey I came to the conclusion that
McKinsey I came to the conclusion that this is not technology innovation this
this is not technology innovation this
this is not technology innovation this is system innovation we are dealing with
is system innovation we are dealing with
is system innovation we are dealing with a challenge of systemic change and that
a challenge of systemic change and that
a challenge of systemic change and that was the reason why two years ago we
was the reason why two years ago we
was the reason why two years ago we started systemic jeremy Oppenheim
started systemic jeremy Oppenheim
started systemic jeremy Oppenheim another senior partner from McKinsey and
another senior partner from McKinsey and
another senior partner from McKinsey and myself and we are deploying our
myself and we are deploying our
myself and we are deploying our fantastic team of 80 people and our
fantastic team of 80 people and our
fantastic team of 80 people and our capital to incubate to enable to
capital to incubate to enable to
capital to incubate to enable to cultivate and to scale the solutions
cultivate and to scale the solutions
cultivate and to scale the solutions these new economic systems that are
these new economic systems that are
these new economic systems that are currently under invested we want to make
currently under invested we want to make
currently under invested we want to make them investable we’re doing that for
them investable we’re doing that for
them investable we’re doing that for land use systems for new urban
land use systems for new urban
land use systems for new urban sustainable urban systems we do it for
sustainable urban systems we do it for
sustainable urban systems we do it for new energy systems and we do it for
new energy systems and we do it for
new energy systems and we do it for circular industrial systems well two
circular industrial systems well two
circular industrial systems well two years is too early to tell but as things
years is too early to tell but as things
years is too early to tell but as things are going we might have a case and our
are going we might have a case and our
are going we might have a case and our case is very simple we have over the
case is very simple we have over the
case is very simple we have over the last 200 years build a global economy of
last 200 years build a global economy of
last 200 years build a global economy of 75 trillion with three and a half
75 trillion with three and a half
75 trillion with three and a half percent growth over the next 20 years we
percent growth over the next 20 years we
percent growth over the next 20 years we are going to build a second economy just
are going to build a second economy just
are going to build a second economy just the same size doing it in the same way
the same size doing it in the same way
the same size doing it in the same way we built the first economy with the same
we built the first economy with the same
we built the first economy with the same amount of resource intensity with the
amount of resource intensity with the
amount of resource intensity with the same amount of Integra Dacian for so
same amount of Integra Dacian for so
same amount of Integra Dacian for so and natural capital we will be off the
and natural capital we will be off the
and natural capital we will be off the charts it’s just not an option being
charts it’s just not an option being
charts it’s just not an option being just a little bit more efficient and
just a little bit more efficient and
just a little bit more efficient and being just a little bit more sustainable
being just a little bit more sustainable
being just a little bit more sustainable cannot be the answer we need to
cannot be the answer we need to
cannot be the answer we need to transform the existing economy and we
transform the existing economy and we
transform the existing economy and we need to rethink and reinvent the new
need to rethink and reinvent the new
need to rethink and reinvent the new economy that we are building and that is
economy that we are building and that is
economy that we are building and that is something that needs to happen but
something that needs to happen but
something that needs to happen but currently it’s frankly just unthinkable
currently it’s frankly just unthinkable
currently it’s frankly just unthinkable so it’s time to change our mind it’s
so it’s time to change our mind it’s
so it’s time to change our mind it’s time to move from management to
time to move from management to
time to move from management to leadership it’s time to move from
leadership it’s time to move from
leadership it’s time to move from optimizing existing systems towards
optimizing existing systems towards
optimizing existing systems towards rethinking new systems so who is there
rethinking new systems so who is there
rethinking new systems so who is there who could heal that I think it’s the
who could heal that I think it’s the
who could heal that I think it’s the generation of the 20 year olds and
generation of the 20 year olds and
generation of the 20 year olds and that’s you and Peter thank you
that’s you and Peter thank you
that’s you and Peter thank you [Applause]
”
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