How the Doughnut Economy Will Drive Sustainability Forward

Our current classic economy is unsustainable because it's centred around constant and unlimited growth. It is also dominated by a 'rational economic man' way of thinking, where decisions are made in a rational way for one's personal gain. But no person or company is alone in the world and such a short-term egocentric way of thinking is doomed to fail in the long run as it depletes the social and ecological resources that we all collectively depend on. Not only does it hurt ourselves, it will also harm those who come after us.

With current rates of resource depletion and growing stress on our social model, it is impossible to maintain this idea of economics. The Doughnut Economy is an alternative approach, one that strives to spread growth and find balance. What best practices and design questions should we adhere to so that we can drive sustainability forward?

What is the Doughnut Economy?

The Doughnut Economy translates the 20th century growth-centred economy into a sustainable model in accordance with ESG (environmental, social and governmental). It identifies two concentric rings, a social foundation and ecological ceiling, between which lies an environmentally safe and socially just doughnut-shaped space where humanity can thrive.

The social foundation is the minimum to an economy. It ensures we don't fall short of the twelve essential needs of all people within the means of the planet, from food and housing to healthcare and equality. This should be the foundation of our products, services, organisations and general way of thinking.

There is a maximum to the economy, an ecological ceiling that we fundamentally depend on. Overshooting the ceiling puts pressure on Earth's life-supporting systems such as stable climate, fertile soils and a protective ozone layer. This should be the ceiling of our products, services, organisations and general way of thinking.

Simply put, the Doughnut model keeps us from under or overshooting our environmental, social and governmental responsibilities. When we can't build a social foundation, we fall short to the economy. Breaching the ecological ceiling means we have overshot the economy and won't be able to keep things in place for the long run. Everything we do, create and organise should lie in the Doughnut-like space between the foundation and ceiling.

We need balance: what design questions will help us find the right balance?

The Doughnut model is about finding the right balance. Growth can't be the target if the foundation is not built or the ceiling is breached.

To find this balance, here are some design questions to adhere to:

·??????????Purpose: Ask yourself why your product, service or organisation exists. What is its focus and how does it fit in the doughnut.

·??????????Networks: What is the network around the organisation? What is your relationship with all stakeholders and how aligned are they with your value proposition?

·??????????Governance: How are decisions being made in your organisation or about your product? How can you stand guard over the doughnut?

·??????????Ownership: Who owns what part of the organisation or product? Who owns the data, the physical components, the assets and shares, the design, etc.?

·??????????Finance: Where and who are you getting financing from and what are their objectives? Do they want financial returns no matter what or are they a philanthropist?

Best practices to finding your doughnut-shaped balance

1.?????????Embrace both the foundation and ceiling – fitting within the doughnut is a good starting point.

2.?????????See the bigger picture – recognise that you are not alone in the world and that your choices have a wider impact.

3.?????????Nurture human nature – design for inclusion and let other people design with you.

4.?????????Think systems – everything becomes a system, a non-linear process without a start or end.

5.?????????Be disruptive – be aware of your power and redistribute it to those who co-created with you.

6.?????????Be regenerative – aim to work within the cycle of the world by thinking about what you use and how you can reuse it in your life or product.

7.?????????Thrive rather than grow – Growth should never be the sole goal as endless growth will breach the ceiling. It is better to spread and you'll find yourself thriving in unexpected dimensions.

The Doughnut model help you to thrive by spreading growth, find balance and drive sustainability forward. Let's have a conversation over a doughnut to figure out how we can design or transform your business model.