Scaling for the New Local

Speakers

• Linda Hwang, Manager, Research, BSR
• Ted Howes, Director, Advisory Services, BSR

Highlights

• Localization is shifting human interaction at a rapid pace, and will consequentially shift business models and practices. Communities that are popping up to share food and localize food systems are a growing trend in which business can become an enabler.

• Sustainable consumption has not taken off because it lacks a solid business model; but inspirational ideas based on sustainable consumption can be put into practice in tangible and immediate ways through localization and scaling down.

• The diversity of possibilities when planning for the future can at first appear paralyzing, but there are opportunities in moving beyond this initial obstacle to understand the potential for future business and markets as a result of localization—such as mobile, small-scale units that convert biomass to energy, for example.

Memorable Quotes

“People are trying to interact more in order to build trust, value, and a human connection.” —Ted Howes, BSR

“Should you—and how do you—tax collaboration?” —Linda Hwang, BSR

“With the increasing trends in sharing, collaboration, and personal connections, people are rethinking how to do the same things differently.” —Linda Hwang, BSR

Overview

Population explosion, environmental degradation, excessive consumption, and compromised societal well-being are all regarded as global issues with local impacts. The rise of these issues is compounded by the astronomical growth in wealth in emerging markets, leading to unequal distribution and segregated demand patterns that range from overconsumption to struggling for basic necessities. These consumption patterns are increasingly driving different systems around us everyday, leading to an explosion of choices in the way we live, eat, work, play, and move. These pressures helped create trends that were originally explored in the Sustainability Outlook, and in Hwang’s continued research into common global issues that are impacting corporate sustainability practices.

Companies and consumers alike are reacting to trends that are primarily tailored toward local, personal, and often shared solutions. For instance, green roofs, reclamation of abandoned land, food exchanges, bike shares, collaborative eating, and participatory budgeting are just some examples that highlight the diversity and local scale of such trends. These networks allow individuals to be part of something and reconnect with key areas of their lives, and this shift has spurred company thought around products and services that foster human connection in a hyper-localized world.

Howes highlighted how redefining boundaries and common terms like “stranger” are becoming a stronger part of the human experience. As an example, he shared his experience of using the online platform Airbnb to find an apartment instead of a hotel for a recent business trip. Howes described the experience as slightly uncomfortable because he was in someone else’s home, yet also strangely comforting because he felt he was in a more human setting than an impersonal hotel room.

Howes and Hwang put forth a challenge to attendees to envision how localization will grow over the next 15 to 20 years in different cities around the world. Framing the question with possibilities—such as the return to old models, the role of fun, and the transformation of space and communities—attendees broke into small groups to dissect and envision communities of the future. A rich variety of responses and perspectives emerged, including the role and potential for jobs, informal trade, planned buying, and supply chain impacts as a result of shifting consumer demands. Participants highlighted a key opportunity for developing nations to not only leap-frog developed countries, but also to build upon this knowledge to develop local solutions that could be sold back to the developed world. Picking apart potential for industries, products, and communities, participants grappled with questions like What does local really mean? and What governmental challenges do communities face when informal nonmonetary means are the main form of trade?

The diversity of participant backgrounds added to the ingenious and at times outlandish solutions for the future. From personal air-conditioning necklaces to an entirely web-based food community, the conversations continually evolved back to localized systems for creating healthy and diverse communities. Hwang drew attention to the interconnectedness of the key issues, which can enable a solution to address multiple issues, such as air-conditioning units that also insulate buildings and purify air.

In light of the extensive dialogue around envisioning a localized future, Howes surprised the audience by asserting he did not believe in forecasting. Because of unforeseen innovations that sprout up rapidly (like Twitter), he does not believe we will be able to account for future inventions; instead, he recommended developing portfolios of innovations that can adapt to changing times.