8 September 2020
r3.0 (Redesign for Resilience & Regeneration) released the Sustainable Finance Blueprint and Value Cycles Blueprint, the sixth and seventh in its Blueprint Ecosystem, at the 7th International r3.0 Conference on September 8, 2020. The release coincided with the Plenary Keynote Sessions on Finance & Growth and on Value & Circularity.
You can download the final reports by clicking the titles below:
- Sustainable Finance Blueprint: Systemic Transformation to a Regenerative & Distributive Economy
- Value Cycles Blueprint: From Value Chains and Circular Economies to System Value Cycles
Each Blueprint is the result of a 12-month development process with a Working Group of about 40 global experts (see below for full lists of Working Group members for each Blueprint) who first provided input on a literature and practice review, and then on two rounds of Exposure Drafts, in two Working Group Meetings and one Virtual Dialogue. Lead Authors Bill Baue and Ralph Thurm then produced a Public Exposure Draft for a 30-day Public Comment Period, after which they integrated inputs into a Final Draft for release at the Conference.
Each Blueprint contained a set of broad Recommendations, reprinted here:
Sustainable Finance Blueprint Recommendations
- Enabling Factors
Framing Enablers
Eight Principles of a Regenerative Economy: Apply the eight Principles of Regenerative Economics to align the design of financial systems with living systems dynamics.
Nine Disclosure Principles of a Regenerative & Distributive Economy: Filter reporting — and reporting standards and systems — through the nine Disclosure Principles of a Regenerative & Distributive Economy.
Process Enablers
Eight Principles for Governing a Commons: Integrate the eight Principles for Governing a Commons into the foundational structure of finance systems.
Eight Elements of Civic Fiduciary / Equity Culture: Apply the elements of Civic Fiduciary / Equity Culture as a complementary means of enhancing the Commons.
- Activation Factors
Scope
From ESG Integration to Threshold Investing: Align investment and finance systems with ecological and social thresholds that define a safe and just operating space for life on earth.
From Monocapitalism to Multicapitalism: Assess impacts of finance in the context of the carrying capacities of the capitals as a means of supporting the paradigm shift to Multicapitalism.
From Impact Valuation to System Value Creation: Assess System Value Creation, focusing on the sustainability of ecological and social impacts, before applying Impact Valuation.
Policy & Governance
From Fiduciary Duty to Strategic Duty: Campaign to redefine Fiduciary Duty to align with beneficiaries’ strategic best interests, namely, long-term System Value creation.
From Alpha Generation to Beta Activism: Abandon Alpha as the measure of investment success, and replace it with Beta Activism, or advocacy for healthy markets.
From Dirty Lobbying to Positive Lobbying: Shift the orientation of lobbying from entrenching negative effects, such as exacerbating climate change, to supporting positive transformations, such as supporting climate action.
Engagement
From Tea & Biscuits Engagement to Forceful Stewardship: Adopt an assertive stance of Forceful Stewardship through industry-scale engagement to shift entire sectors toward sustainability.
From Competitive Advantage to Collaborative Advantage to Collaborative Advocation: Recognize the merging of self-interest and collective interest when risks become systemic and existential, thus calling for joint advocacy for new operating system constraints aligned with ecological and social thresholds.
Practice & Performance
From Scenario Analysis to Transformation Planning: All finance actors produce specific plans for transformation in response to emerging realities, and compel the entities they finance to do the same.
From Outside-In Enterprise & Portfolio Risk to Inside-Out Systemic & Existential Risk: Expand risk radars to encompass both outside-in and inside-out risk horizontally, and vertically extending to include systemic and existential risk.
- Transformation Factors
Foundational Transformation Factors
Holism: Base economic and finance system design on holism, recognizing the inherent interconnectivity of complex adaptive systems.
Economies as Ecosystems: Design economies as ecosystems, following the principles that govern all other living systems.
Regeneration: Adopt regeneration as the general specification for economic and finance system design, embracing sustainability as the baseline.
Functional Transformation Factors
Multiscale (Bioregional): Adopt the bioregion as the locus of attention for scale-linking transformations up and down.
Post-Growth: Shift to Post-Growth strategies that satisfy the core needs of all living beings within the carrying capacities of resource bases.
Mutualism: Actively dismantle dominance-based economic and finance systems, replacing them with mutualistic economies and finance systems.
Value Cycles Blueprint Recommendations
- Identify your Definition of “Value”
- Acknowledge the Current Value Crisis, and Work for a New System of Value
- Embrace and Apply the Sustainability Quotient
- Advance a System of Value that Embraces System Value
- Transcend Linear and Circular to Embrace Cyclical and Spiral Value
- Integrate Value Scales through Fractal Nesting (or Panarchy)
- Apply Thermodynamic Accounting
- Encourage Bioregional Circulation
- Spur the Emergence of a Cyclical Economy
- Map Value Development Pathways Using the r3.0 Maturation Matrix
- Apply the Integral Materiality Process to Determine Impact Relevance
We look forward to real-world actors implementing these Recommendations!
Members of the Working Groups
Sustainable Finance Blueprint Working Group:
Keith Ambachtsheer, Founder, KPA Advisory Services; Trae Ashlie-Garen, Executive Coach, Animis Philanthropic Ventures Inc. and the WINfinity Framework; Chauncey Bell, Chairman and Chief of Design, Harvester Academy; Salomon Billeter, Founder, sim2sustain; Joe Brewer, Director, Center for Applied Cultural Evolution; Jane Fiona Cumming, Co-Founder & Director, Article 13; Jed Davis, Director of Sustainability, Cabot Creamery Cooperative; Frank Dixon, Founder, Global System Change; Catharina B. Dyvik, Program Manager, Blended Finance Taskforce / SYSTEMIQ; Gil Friend, CEO, Natural Logic Founder Critical Path Capital; John Fullerton, Founder, Capital Institute; Adam Garfunkel, Managing Director, Junxion; Radoslav Georgiev, ESG Disclosure Lead, ING; Sven Griemert, Owner, Griemert Consult; Jessie Henshaw, Founder, HDS; Silke Hohmuth, Founder, MenschBank e.V.; Paul F.M. Hurks, RA Director International Affairs, NBA; Astrid Kaag, Policy Advisor, Province of Noord-Brabant (NL); Christoph Klein, Managing Partner, ESG Portfolio Management GmbH; Jan Köpper, Head of Impact Transparency & Sustainability, GLS Bank; Taeun Kwon, Head of Wealth Management Programs, Center for Sustainable Finance and Private Wealth (CSP), University of Zurich; Natasha Lamb, Managing Partner, Arjuna Capital; Laurie Lane-Zucker, Founder & CEO, Impact Entrepreneur, LLC; Sanford Lewis, Director, Shareholder Rights Group; Steve Lydenberg, Partner, Strategic Vision Domini Impact investment & CEO, The Investment Integration Project; Tim MacDonald, Producer/Publisher, Evergreencore; Magdalena Matei, Founder, The Urban Tree Village; Herman Mulder, Chairman SDG Charter Foundation (Netherlands); Co-Founder/Chair True Price Foundation; Jeremy Nicholls, Professor Social Value, Staffordshire University; Prof. Dirk Schoenmaker, Academic Director, Erasmus Platform for Sustainable Value Creation, Jérôme Tagger, Chief Executive Officer, Preventable Surprises, Raj Thamotheram, Founder & Chair, Preventable Surprises; Will Szal, Head of Economics, President of the Board, Regen Network; Mark van Clieaf, Managing Partner, Organizational Capital Partners; Rens van Tilburg, Director, Sustainable Finance Lab; Dr. Koos Wagensveld RA, Professor Financial Control, HAN (Hoogeschool Arnhem Nijmegen); Volker Weber, Chairman of the Board, Forum Nachhaltige Geldanlagen e.V; Cynthia Williams, Osler Chair in Business Law, Osgoode Hall Law School, York University; Allen White, Vice President & Senior Fellow, Tellus Institute; Co-Founder, Global Reporting Initiative; Alan Willis, President, Alan Willis & Associates
Value Cycles Blueprint Working Group:
Bernd Ankenbrand, Purpose Economist, University of Applied Sciences Wuerzburg-Schweinfurt; Trae Ashlie-Garen, Executive Coach, Animis Philanthropic Ventures Inc. and the WINfinity Framework; Paul Barnett, Founder & CEO, Strategic Management Forum; Renilde Becqué, International Sustainability Consultant; Sharona A. Ceha, Co-Founder, Stichting Nederland Kantelt; Jane Fiona Cumming, Co-Founder & Director, Article 13; Jed Davis, Director of Sustainability, Cabot Creamery Cooperative; Henk de Man, Co-Founder & Value Architect, VDMbee; Gil Friend, CEO, Natural Logic; Founder, Critical Path Capital; Delphine Gibassier, Associate Professor of Accounting for Sustainable Development, Audencia Business School; Linda Grieder, Founder & CEO, RethinkResource GmbH; Henk Hadders, Founder, Impact in Context; Reiner Hengstmann, Founder, Go4moreGlobal; Karin Huber-Heim, Circular Economy Systems Research, BCSSS (Bertalanffy Center for the Study of Systems Science); Ladeja Godina Košir, Founder & Executive Director, Circular Change; Alexander Laszlo, Director of Research, Laszlo Institute of New Paradigm Research; Karel Leeflang, CEO StrategyPod, powered by AlignAlytics; Zoe Le Grand, Principal Partnerships Manager, Forum for the Future; Alexander Lemille, Founder & Managing Director, Wizeimpact; Mark McElroy, Executive Director, Center for Sustainable Organizations; CEO, SustainAccounting LLC; Co-Creator, MultiCapital Scorecard; Alexander Prinsen, Managing Partner, The Zero Waste Consultant; James Quilligan, Managing Director, Economic Democracy Advocates; Senior Advisor, Peer to Peer Foundation; Martina Prox, Sustainability Strategy, iPoint Group; Caroline Rees, President, Shift; René Schmidpeter, Director, Center of Advanced Sustainability Management (CASM), Cologne Business School; Josef Schöggl, Christian Doppler Laboratory, University of Graz, Austria; B. Lorraine Smith, Writer, Independent Advisor; Antony Upward, Flourishing Enterprise Designer, Better My Business; Martijn Veening, Founder/Analyst, EntropoMetrics; Aldo van Duivenboden, Project Manager Conscious Business Lab, Saxion University of Applied Sciences; Koos Wagensveld, Professor Financial Control, HAN (Hoogeschool Arnhem Nijmegen); Andy Whitman, Director, Sustainable Economies Program, Manomet
