Footprint Network Blog - Footprint for Business
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.
HUD required all applicants to use a more complete benefit-cost analysis developed by Earth Economics, a close partner of Global Footprint Network. It is exactly the kind of approach that Global Footprint Network and Earth Economics called for in July in our State of the States Report, which found the United States demands twice the resources that its ecosystems can regenerate. It is also similar to the approach that Global Footprint Network piloted with the state of Maryland when developing our Net Present Value Plus tool.
To assert the HUD/Rockefeller competition marks a significant departure from business as usual is an understatement. In fact, HUD has opened the door to a brand new approach where sustainability and resiliency are the guiding principles in deciding which disaster preparedness projects are worth funding.
“We are delighted a federal agency is demonstrating such a strong commitment to incorporating the value of nature into infrastructure and resilience projects,” said Dr. Mathis Wackernagel, co-founder and CEO of Global Footprint Network. “This is a profound shift that is bound to transform industry standards.”
Eligible applicants to the competition were required to incorporate nature into the economic impact analysis of their disaster resilience projects. All of them received training by Earth Economics on how to assess their costs and benefits more comprehensively, including the value of natural assets. The applicants then were allowed to seek Earth Economics’ assistance with their applications. Indeed, all of the applicants who sought Earth Economics’ assistance—including the state of California—won HUD money, totaling $680 million altogether.
In each case, Earth Economics coached the jurisdiction to understand how natural systems work within its specific region, and to make nature part of the solution recovering from natural disasters.
For the New York City Housing Authority’s (NYCHA) Storm Resiliency Program, for instance, Earth Economics found New York City’s urban parks and green space affected by Hurricane Sandy provide $3.9 million in ecosystem services ranging from aesthetic and recreational value to water purification and storage value. NYCHA was awarded $176 million.
Decision-makers both inside and outside the United States ought to pay close attention to how this competition was conducted and to the innovative economic analysis that was applied. By using comprehensive methods for measuring the multiple benefits of post-disaster projects, government decision makers can have a far more beneficial, resilient and sustainable impact. This is the only way to avoid repetitive damage and billions in future costs, while building healthy lands and vibrant economies.
For more background on our Net Present Value Plus assessment tool, visit www.footprintentwork.org/npvplus.
Learn more about Earth Economics at www.eartheconomics.org.
Photo credit: US Department of Agriculture flickr 20120817-FS-UNK-0034
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.
As people move on from the suspense, excitement, and sometimes disappointment that was Rio+20, at least one thing is clear to us—the Ecological Footprint is more important than ever in a world where international cooperation on sustainable development has not delivered everything the world hoped it would.
Global Footprint Network Science Coordinator Kyle Gracey (far right) at the Eye on Earth Panel
Global Footprint Network is thrilled to announce that Co-Founder and President Dr. Mathis Wackernagel and Dr. William Rees, co-creators of the Ecological Footprint, have been named the winners of the 2012 Kenneth E. Boulding Award, the world’s top honor in the field of ecological economics.
The International Society for Ecological Economics (ISEE), made the announcement leading up to the Rio+20 Earth Summit, the United Nations Conference on Sustainable Development (UNCSD), in Rio de Janeiro, where the awards will be presented.
The biennial award is given to “outstanding individuals who have contributed original and seminal approaches that have furthered our understanding of the interfaces between the social, ecological, ethical, economic and political dimensions of our world,” said the ISEE in announcing the award.
Building on Rees’ earlier work on human carrying capacity, Wackernagel and Rees in the early 1990s developed the Ecological Footprint, the world’s premier resource accounting system, to track humanity’s demands on nature. The Ecological Footprint measures the area of productive land and water, or “biocapacity,” required to produce the resources a human population consumes and to absorb its carbon waste.
For the last 10 years, Global Footprint Network has contributed to WWF’s bi-annual flagship publication “The Living Planet Report,” which has become a key publication for Ecological Footprint results. The 2012 edition was released in May from the International Space Station, generating the largest media response of any Living Planet Report so far. The latest Global Footprint Network calculations show that humanity’s demand for bio-resources exceeds the long-term regenerative capacity of Earth by over 50 percent.
“Ever more countries continue to use more resources than they can renew within their own boundaries,” Drs. Wackernagel and Rees said. “Until countries begin tracking and managing their biocapacity deficits, they put not only themselves at risk but, more importantly, the entire planet.”
The award will be presented at the ISEE Conference 2012 in Rio de Janeiro on June 19, where Wackernagel and Rees will deliver the keynote Boulding Award lectures.
Dr. Wackernagel has promoted sustainability on six continents and lectured at more than 100 universities. Dr. Rees is an ecologist, ecological economist, Founding Director of the One Earth Initiative, Professor Emeritus and former Director of the University of British Columbia’s School of Community and Regional Planning.
Kenneth E. Boulding (1910-1993) was President of the American Economics Association and American Association for the Advancement of Science. Past notable recipients include Herman Daly (American economist, considered the father of Ecological Economics) and Manfred Max-Neef, author of Real-Life Economics: Understanding Wealth Creation.
We thank you, our valued partners and supporters, for helping to promote our work around the world, and making awards such as these possible as we continue to make ecological limits central to decision-making.