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The Carbon Productivity challenge The concept of Carbon Productivity10 was born of a recognition that we — business leaders, policy-makers, investors, citizens — face a twin challenge: how to reverse global warming and, simultaneously, deliver economic prosperity for a rapidly expanding global population. The implications are profound: an economic transformation at least on the scale of the Industrial Revolution is required — but on a significantly accelerated timeline. The Industrial Revolution spurred a tenfold (or 10X) increase in labour productivity in the United States, but it took 125 years (from 1830 to 1955).11 We must now do the same with carbon, globally — and in less than a third of the time. At the heart of this new Industrial Revolution is a radical shift in the way we use carbon to create economic value. “If humanity has changed the climate by mistake, can we change it with intent?” Interface, Climate Take Back12 The principles of Carbon Productivity So how do we enable this radical shift? There are three guiding principles that should, in our view, inform those designing tomorrow’s metrics, products and business models: 1. Take into account the carbon impacts of the entire lifecycle of a product, including material and energy inputs, production processes, product design and use, and after-use disposal or recovery of materials. 2. Consider CO2 emissions generated, future emissions avoided and carbon removed from the atmosphere — recognising the need for the sum of the second and third to outweigh the first. 3. Look at financial value and carbon impacts in an integrated way, recognising the need to optimise both at the same time (and for both to be part of the same strategic discussion, rather than being addressed by separate organisational silos). 10 The term ‘Carbon Productivity’ was originally coined in a 2008 McKinsey paper, The Carbon Productivity challenge: Curbing climate change and sustaining economic growth, https://mck.co/2OA8Hzs 11 Ibid. 12 http://www.interface.com/EU/en-GB/campaign/climate-take-back/Climate-Take-Back-en_GB 6PDF Image | Our Carbon Future White Paper
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