Footprint Network Blog - Footprint for Business
Can China become such a civilization?
To find out, we engaged with the Province of Guizhou. We are launching the results of our close collaboration with the province on Wednesday, July 6, at the EcoForum Global conference with a report titled "The Guizhou Footprint Report: Metrics for an Ecological Civilization."
Without a doubt, China is facing steep challenges: growing resource demand far beyond its own ecological resources and services; heavy dependence on fossil fuels; and growing expectations among citizens, with many people, particularly in rural areas, still needing to be lifted out of harsh economic conditions.
The Guizhou Footprint Report was created with financial support from the Swiss government. With mountainous ecosystems, rich biodiversity, and diverse people, Guizhou Province is a unique region of China that shares geographic similarities with Switzerland. So the report also includes a comparison of the two countries, China and Switzerland.
Here are some findings that highlight the challenges that Guizhou is facing:
Global Footprint Network first began encouraging greater environmental risk integration into bond credit analysis five years ago. Since then, a growing number of fixed income investors are following suit. We are particularly delighted by the recent announcement PRI (Principles for Responsible Investment), an influential investor group who is calling on credit rating agencies to incorporate environmental, social and governance (ESG) factors into their credit analysis more systematically and transparently.
Some of the world’s major rating agencies last June confirmed their willingness to participate in a project to make this vision a reality. Now the PRI is calling on fixed-income investors to sign a Statement on ESG in Credit Ratings before its official launch on Friday, May 6, to be at forefront of this call to action.
If an acre of forest burns up in flames, what’s the cost? Zero, was FEMA’s reply in 2013. The Federal Emergency Management Agency rejected California’s request for a federal “major disaster” declaration and funding after the devastating Rim Fire, because it only knew how to put a price tag on man-made structures. The 400 square miles of forests that had been reduced to ashes and charred stumps—including part of Yosemite National Park—couldn’t translate into dollar amounts.
How times have changed. Two weeks ago, the state of California was named one of the 13 winners of the National Disaster Resilience Competition by the U.S. Department of Housing and Urban Development (HUD) and the Rockefeller Foundation. California won more than $70 million to help fund several disaster preparedness projects in communities affected by the Rim Fire.
What happened? As extreme weather events have become more frequent due to climate change, decision-makers are realizing that conventional project assessments won’t do, and that building strong, resilient communities requires drastically innovative approaches. In a first for a federal agency, the HUD Office of Economic Resilience, in collaboration with the Rockefeller Foundation, mandated that nature be a key element in the design of development projects submitted to the $1 billion competition.
Happy New Year from Global Footprint Network!
2015 has been a very important year for humanity and the health of our planet.
Building on the momentum of the historic Paris climate agreement, the stage is set to accelerate major shifts to a low-carbon and resource-secure future. While the goals are clear, the gap is still large, especially for the most vulnerable communities.
We look forward to even more progress next year, tracking our natural capital as carefully as we do our finances, and guiding decision-makers to take action in accordance with a resource-constrained planet.
With your generous support, we made substantial strides advancing global sustainability in 2015. Check out the slideshow below for highlights from the year:
Join us in helping all of humanity thrive within the means of our fabulous planet:
• Calculate: Measure your own Ecological Footprint with our online calculator, which we plan to update with a mobile version in 2016.
• Get social: Get news, photos and videos from Global Footprint Network’s Facebook, Twitter and LinkedIn communities. Invite your friends and family members to learn more about natural resource constraints, one of the most urgent issues of our time.
• Make a difference: Our interns, staff and board members are making a difference in such diverse areas as the Arctic, Iran, Switzerland and China. You can amplify our impact by donating to Global Footprint Network.
Thank you again for everything you do to preserve the only planet we have.
Mathis Wackernagel, President of Global Footprint Network, was in Florence, Italy, this week to receive the IAIA Global Environment Award for developing the Ecological Footprint. “The Global Environment Award is presented annually to a leading individual or institution that has made a substantial contribution to the practice of environmental assessment, management or policy at a global scale,” according to the International Association for Impact Assessment. This global network believes, in its own words, that “the assessment of the environmental, social, economic, cultural, and health implications for proposals is a critical contribution to sound decision-making processes, and to equitable and sustainable development.” IAIA is recognizing the Ecological Footprint for efficiently “translating the complexity of humanity’s impact on the environment into a compelling, understandable and actionable form.”
Previous recipients of the award include:
2014 John Ruggie, USA
2013 International Finance Corporation, USA
2012 Int’l Network for Enviro Compliance & Enforcement, USA
2011 Not awarded
2010 Nicholas Stern, UK
2009 The Carter Center’s River Blindness Program, USA
2008 Elizabeth Dowdeswell, Canada
2007 Lawrence E. Susskind, USA
2006 Wangari Maathai, Kenya
2005 James Gustave Speth, USA
2004 Margot Wallstrom, Sweden
2003 Mostafa Kamal Tolba, Egypt
2002 Jan Pronk, The Netherlands
2001 Maurice Strong, Canada
The text from Wackernagel’s acceptance speech is below:
Our staff has been busy this past month spreading the word about the Ecological Footprint at conferences and engagements around the world. Click locations below to learn more about our work.
Susan Burns, co-founder and CEO of Global Footprint Network, will be honored today at the International Society of Sustainability Professionals (ISSP) Conference in Denver, Colo., as both she and co-founder Mathis Wackernagel are inducted into the ISSP Sustainability Hall of Fame. She has taken this opportunity to share insights from her journey.
How did you "fall" into a career as a sustainability professional?
As a child I loved nature, and I somehow knew there was a problem with pollution and the extinction of species, even though during my suburban upbringing it wasn’t exactly kitchen table conversation.
After earning a degree in environmental engineering, I started working in the consulting industry. I like to joke with my younger colleagues that I was working in this field before “sustainability” was even a word! I started the pollution prevention practice at ERM West. Then I met Ernest Lowe and Gil Friend, some of the early thinkers around the idea of industrial ecology and how the waste of one industrial process can be used as the input for another industrial process. The idea is to mimic nature where production and “waste” are all incorporated into one closed loop, and everything is utilized. I ended up starting a small consulting firm, Natural Strategies, with Adam Davis and the late Charles McGlashan, two brilliant men. Our vision was to help global corporations adopt sustainability as a source of competitive advantage even though the business world was very skeptical at the time.
Did you know the Chinese province of Guizhou in southwest China bears some striking resemblance to Switzerland? I confess I didn't, until I was invited to Guizhou last month to speak at Eco-Forum Global. Since 2009, this annual conference gathers participants from around the world to share knowledge about policies regarding green economic transformation and ecological security. This year I spoke on a finance panel led by the chief economist of Bank of China, Ma Jun, and a panel organized by the Sino-Swiss Dialogue.
Just like Switzerland, Guizhou is landlocked and boasts a mountainous landscape. It is one of two provinces in China that President Xi Jinping declared to be testing grounds for China’s new focus on "eco-civilization" and the "China dream."
Some of the economic implications of resource constraints were introduced to the world of international finance this week in London, when Global Footprint Network and the UN Environment Programme Finance Initiative (UNEP FI), in collaboration with leading financial institutions, launched the E-RISC (Environmental Risk Integration in Sovereign Credit) report at Bloomberg, a leader in global financial data.
The interactive event drew over 150 participants, including representatives from leading financial institutions, investors, asset management firms and rating agencies, including Caisse des Depots, SNS Asset Management, Standard & Poor’s, J.P. Morgan, KfW Bankengruppe, Deutsche Bank, HSBC and Barclays.
To date, tightening resource constraints and their impacts on national economies have been largely absent from financial analyses. The E-RISC report fills this gap by exploring to what extent resource and ecological risks can impact a nation’s economy and how these factors affect a nation’s ability to pay its debts.
Global Footprint Network supports the Natural Capital Declaration, a commitment made by CEOs from the finance sector to integrate natural capital accounting into their financial products and services.
Global Footprint Network is committed to creating a world where everyone can live well within the means of one planet. It is going to take all of us pulling together toward this common goal. We recognize the need to push the frontiers beyond business-as-usual and to explore more integrated approaches to finance. As financial institutions are an integral part of the economy and society, initiatives like the Natural Capital Declaration are important to help lead the way.