A few weeks ago, I broke my ankle and it completely shifted the dynamic of my family. Suddenly there was a new goal due to hard ‘limits’ – Mama was unavailable but the washing, cooking and school run still needed to be done. So, my two sons and husband adapted, and did so with an abundance of imagination and new ways of working that previously seemed inconceivable. Every day my 8-year-old walked in from school asking ‘Mama, what can I do to help?’. The result is that he now can wash the clothes, go to the shop on his own and put out the bins. My 6-year-old can make breakfast, feed the dog and unload the dishwasher. And they do it without grumbling!
Why am I telling you this? Well, because it got me thinking about systems, how change happens and what it takes for that change to become the norm. “Leverage points are places where a small shift in one thing can produce big changes in everything” says systems thinker, Donella Meadows. It took a relatively small, unforeseen incident for my family system ‘see itself’, adapt to a new goal and ultimately change.
See the system
We all live in systems. A couple is a system, a family is a system, a city is a system, a nation is a system. Our society is a system – a complex one – and so is our economy. And systems are always changing. Today, our economic system is creaking at the seams. After centuries of continuous growth, we are learning that we cannot indefinitely borrow natural resources from other geographies and future generations.
So, how do we move towards a new economic system that values nature, people and the economy in equal measure? That was the proposition posed by the Capitals Coalition, in collaboration with S&P Global, in Paris on July 4th, 2024. A gathering designed to provide people with a safe space in which feel confident enough to be pushed outside of their comfort zones. ‘The system needs to see itself’ were the opening words of the day, inviting people to have the courage to look at the innovation, and limits, of our efforts to value what matters. The day was politically charged. Independence Day, the day of the UK general election and two days before the final French legislative vote. On 4th July 2024, the discussion was as urgent politically, as it was environmentally and economically; a first for our crowd.
“What we do (impact) is deeply political due to its multi-dimensional consideration and requires courage and creativity to ensure the increased momentum of investment volume going into the space of investing for impact makes a tangible difference.” (Attendee, finance)
The agenda was ambitious: new data on unpriced environmental costs was released alongside a white paper on global innovations to deliver a new economic paradigm. The narrative arc presented was one of possibility and based on the research with business and finance. Courageously, attendees from business, finance, policy and civil society leaned into a challenging day to see the system and acknowledge that it sits among other systems. While many leaders recognize that markets alone can’t effectively address climate change, nature loss or persistent inequality, solving these requires thinking, organizing and acting differently across systems. Yet, we struggle to act outside of our own bubble. We rarely connect with others who are pushing boundaries, and – as demanded by last year’s event – we lack a narrative to talk about system change within and among the private sector.
“It was an important respiration, moment to strategize, think outside the box and regroup with partner organization to make integrated decisions more mainstream. I felt I need to step up and do even more to lead on the area that I’m working on.” (Attendee, finance)
“The Capitals Coalition continues to facilitate a critical space and conversation about how private sector actors can better account for overlooked value relating to human, social, and natural capital. As a former investor, I see this as a critical element of what is missing to incentivize change.” (Attendee, civil society)
The power of stories
We tell stories to make sense of the world. On July 4th, the story told was brave and one we must continue to tell: it is within our collective power to update the economic system, and – given the blinkered approach of focusing on financial capital only – change is fast becoming inevitable. The economic system can be updated; we can shape how it adapts.
“I think I speak for all that the afternoon discussion on the future narrative has been brave, insightful and productive. It was a perfect mix of connectivity, content and engagement. I think everyone left feeling energised, informed and encouraged to continue lead and act knowing that it will not be easy, but then ‘system change’ never been easy.” (Attendee, finance)
“The session to discuss the narrative arch was profoundly inspiring. When people with different backgrounds saw the proposed text, instant feedback and reactions took place, starting a good discussion about how to speed up this system transformation, and how to tailor it according to each audience. One of my takeaways is that policy makers, standard setters, and investors are the stakeholders who influence the most a large number of people and corporations.” (Attendee, corporate)
So, what’s next? We heard a call for courageous leadership, creativity and collective wisdom. And strong demand for collaboration and action. The next few years will be crucial politically, economically and socially, as well as environmentally because systems pushback (my sons are less willing to help as I get back to normal). The Capitals Coalition’s new 2025-2035 strategy will work to change the economic paradigm and make sure decisions account for what matters. “You could say paradigms are harder to change than anything else about a system” says Meadows, “but there’s nothing physical or expensive or even slow in the process of paradigm change. In a single individual it can happen in a millisecond. All it takes is a click in the mind, a falling of scales from eyes, a new way of seeing.”
Let’s be brave enough to let systems see themselves. All it takes it is a millisecond.
