Steps to natural capitalism

The impact of concerns about environmental degradation has prompted many initiatives to improve the environmental efficiency of businesses, such as environmental management systems and industrial ecology as well as recycling, waste reduction and energy reduction programmes. Hawken et al. (1999) argue that these kinds of change are part of processes so profound that humankind is actually participating in another industrial revolution, a revolution to Natural Capitalism. These three authors outline basic changes to the capitalist system that necessitate different mind‐sets and sets of values that ultimately lead to profound differences in the ways in which businesses are managed. This paper considers the possibility that we are on the verge of an industrial revolution that will implement a new form of capitalism that will facilitate an easier transition to sustainable industrial development. This paper proceeds by first identifying key approaches to the management of the environment and then identifying six steps that will have to be taken if the putative revolution is to be realized. Copyright © 2001 John Wiley & Sons, Ltd and ERP Environment