Compete in a world of finite resources

- Given that our living and business space, the Earth, is finite and that the global consumption of natural resources has grown exponentially in the past century, the question of how we can better manage our natural resources for business is an urgent one. Driven by population growth, consumer demand, and emerging economies in developing countries global pressure across all major environmental resources will continue to increase over the coming years. And the risks and environmental stresses derived from climate change, such as water and land availability and biodiversity loss, means that there is pressure on business to reinvent the way it utilizes natural resources going forward. With an additional two billion people predicted to inhabit the planet by 2055, that's a lot of potential new business customers. However, an additional two billion humans competing for limited natural resources could trigger commodity shortages that may prove disastrous. We define natural resources as both the physical components of the environment, wood, water, minerals, oil, natural gas, air, solar energy, et cetera, and living things like animals, plants and vegetables that can be directly used or transformed to cater to satisfy human needs. They're the literal building blocks of global business. Natural resources are divided into two categories, renewable and nonrenewable. A natural resource is called renewable if some natural process can replenish it in a perceivable amount of time. Soil, air, sunlight, wood, and water. Nonrenewable resources refer to those that are not replaced. Once it's used it can never be replenished. Things like oil, coal, and aluminum. Concerns about the limitations of these resources to national, political, and economic security have caused countries to limit, embargo, and or block exporting of commodities such as cotton, rare Earth minerals, oil, and other essential resources. We're all aware of what happens when oil producing countries limit the sale of crude oil. From a business perspective natural resource limits act as constraints to business growth, production, and distribution, particularly in resource intensive industries like the agriculture and energy sectors. The long-term viability of companies will depend on their ability to successfully operate in a world of finite natural resources and to develop the ability to do more with less. Here are some initial steps your company can take to mitigate natural resource constraints, manage risks, and address opportunities. Measure your environmental footprint in your owned and operated facilities, as well as your supply chain. Start by appointing a small team of trusted staff and charter them with gathering the basic data that identifies where your greatest environmental impacts lie. Reduce your energy and water use and work with supplier partners to reduce their own. I'm sure you pay your energy and water bills, right? Is there someone at your company currently responsible for identifying ways to save on those bills? Reduce the waste you generate in your own operations and divert more of it from landfills. Start by asking your facilities, or finance team, for information on your annual waste hauling costs. Audit what primary materials are being discarded. Many waste management companies have programs to assist you with this. Collaborate with stakeholders and non-company experts to make progress toward your goals. Do you have a process for collecting and understanding the voice of your primary stakeholders? If not it's time to start thinking about who those key influencers are and begin to regularly interact with them. The most important step you can take right now to better manage your natural resource inputs is to explicitly acknowledge at the senior executive and board level that they're at risk. Craft a strategy that identifies your key material inputs and assign the management of that strategy to a trusted internal team who are measured and rewarded based on their ability to effectively manage that natural resource strategy. Your future depends on it.