To achieve a just transition towards a new order of regenerative economic growth, we need clear definition of the terms commonly utilised starting with capital, price, cost, and value.
These definitions provide the basis for a transition framework for measuring and managing economic activities; actions, transactions and reactions over time and in place.
Price reflects a financial consideration, cost encompasses natural capital, and value is defined by the individual entity be they human or organisation and can be shared within communities, such as those based on faith or culture.
GDP:GDU – Production : Utilisation
Gross Domestic Utilisation or GDU as a metric will help measure the efficiency of resource utilisation.
By comparing GDP and GDU we are measuring production inputs against the utility of resources in consumption.
This ratio reflects the difference between production as measured today and consumption utility as a measure of waste or lost and latent value. Today the circularity of our economy is estimated at below 10% representing a resource utilisation loss of 90% or a 9x regenerative growth opportunity.
Reliable and validated information reduces risk and opens opportunities for informed procurement and decision making with better visibility of the liability/asset equation of ownership of resources under management.
This baseline data, against a reference of net zero, brings ownership and engagement to meeting other foundational goals and aspirations of citizens, organisations and governments.
