The Four Systems Conditions

The guiding principles for sustainability of The Natural Step are known as the four systems conditions. The conditions, as we interpret them, are:

1) Substances extracted from the Earth's crust
must not systematically increase in nature.

Fossil fuels, metals, and minerals must not be extracted at a faster pace than they can be redeposited into the Earth's crust. This is because wastes from these processes tend to spread and accumulate in the system beyond limits considered safe for human health. Therefore, the strategic business question to ask is, "How can my organization take steps to decrease its dependence on underground resources?"

For example, OK Petroleum of Sweden is working to develop an ethanol-based fuel derived from organic matter.

2) Substances produced by society must not
systematically increase in nature.

Man-made substances must not be produced at a faster pace than they are broken down by natural processes of assimilation. In part, this is because these compounds will eventually spread and increase their concentration in the natural system beyond limits acceptable for human health. Therefore, the strategic business question w ask is, "How can my company take steps to decrease its dependence on non-biodegradable, manmade compounds?"

For example, Skandic Hotels stopped using bleach in its guest towels and sheets, a change that resulted in significant savings with no customer complaints.

3) The physical basis for the productivity and diversity
of nature must not be systematically damaged.

The productive natural surfaces of the earth (such as oxygen-yielding forests) should not be destroyed at a rate faster than they can regenerate. We depend on the oxygen and the food that are produced by green plants in order to breathe and to eat; they are critical to our survival. Therefore, the strategic business question to ask is, "How can my company take steps to decrease its dependence on activities that destroy productive natural systems?

For example, AMOCO replaced an old pipeline in a manner designed to create minimal disruption in the Indiana Prairie State Nature preserve. As a result of its efforts, the company won an award from a U.S. government organization.

4) Resources should be used fairly and efficiently.

Given the physical constraints of our biosystem (the planet Earth and its atmosphere) as articulated in system conditions 1-3 above, the basic human needs of all people must be met with increasing efficiency. Therefore, the strategic business question to ask is, "How can my company increase the efficiency with which it uses resources? How can we waste less?"

For example, Wintergreen Clothing in northern Minnesota is making fleece coats, suitable for protection against winter's bitter cold, out of material derived from plastic soda bottles.

Source: Karl-Henrik Robert, 'Simplicity Without Reduction," The Natural Step Environmental Institute Ltd. (Stockholm, Sweden), 1994.

The Power of Mental Models

In the industrial culture of the 20th century, several mental models have prevailed that do not support a sustainable future. In order to create a different future reality, we must understand the impact of these beliefs on our current actions, and consider how these assumptions might be reshaped in order to contribute to global prosperity.

Mental Model: The economic system is the entire system.

The economic paradigm that has prevailed in business schools and executive boardrooms often suggests that the economic system is the entire system. This view forgets that economic benefits are derived from the overall natural system in which the firm operates. The social and environmental costs of doing business, such as consumption of natural resources and disposal of wastes, are often not included in the balance sheet. If the real costs to the natural system were reflected in accounting practices, some companies that are currently considered profitable would actually show a loss.

A more sustainable point of view recognizes the earth as the source of all profits. If I run an oil company, my profits are generated from petroleum extracted from the earth. If I run a lumber company, my profits are generated from the forests of the earth. Even if I work in the information industry, my profits are generated by providing knowledge or information to other companies that profit by producing goods from the earth. Ultimately, we must recognize that the economic system is a subsystem of the ecosystem.

Mental Model: Industrial processes are linear.

Most of us were taught in school that processes begin at point A and end at point B. This kind of thinking does not consider the systemic cyclical repercussions of our otherwise well-intentioned actions. We are therefore often surprised when our original actions produce dangerous consequences: the drums of chemicals that we buried "securely" beneath the earth 20 years ago leak into and contaminate the local water supply, or a product that made our firm tens of millions of dollars in profits costs us hundreds of millions in environmental cleanup a few years later.

A more sustainable view sees a cyclical process of design, production, and recovery of resources that can then be used again in the production process.

Mental Model: There are infinite resources for the production of goods. We can throw wastes away.

In the early days of the Industrial Era, when the world population was one-tenth of what it is today, the perception prevailed that physical resources were unlimited. Given an assumption of limitless goods and an infinite capacity of the system to absorb our wastes, there was no reason to focus on efficiency, reducing waste, or reusing goods. We could generate wastes and simply throw them away.

A more sustainable perspective recognizes that we do not have an unlimited supply of raw material to work with, so we must be more efficient in our use of materials. In addition, we must recognize that the earth is, indeed, a closed system. There is no “away" to throw our garbage -- my "away” is someone else's backyard, water supply, or home. What waste we generate and are unable to reuse will become dispersed junk, which could have potentially devastating consequences for human survival and the survival of other inhabitants of the earth.