The environmental and social challenges above cannot be addressed directly as they are inevitable outcomes resulting from the incentives and design of our existing systems. They are merely externalities of how government, charity and business are structured and what actions they incentivise as siloed entities within a wider system. 

In 2024, there was a $700 billion nature financing gap that must be closed. Compare this with the cost of collapsed ecosystem services to the global economy of over $2.7 trillion. We must consider that because our systems do not incentivise actions to close this gap then they cannot fit for purpose.

Simply, if our existing models and systems worked, were logical and incentivised good decision-making then there would not be a nature financing gap, no decimation of our natural world, no climate change and we wouldn’t be heading towards 3 billion climate refugees. 

Let’s break it down. 

Government

Governments are inconsistent by design, as such tend to be unreliable regarding long-term strategic planning. Their incentives simply do not align to long-term actions that prevent accumulative crises, like climate change, but rather to be reactive and deal with immediate issues. After all, “If people can’t eat today, why vote for 50 years from now?”. The incentives of most governments cannot be reasonably expected to result in aligned, fast-paced, innovative action that serves and finances our future economy or planet.

Conversely, well-functioning governments serve and are answerable to their people. This is a form of decentralisation and civilisations first real attempt at maximising the collective intelligence of set populations. Freedom of thought and having a say on your future are important to systems being adaptable to new conditions. 

We group together as a species because we instinctively crave security and community, this has naturally led to various forms of government and governance structures. Safety in numbers is a crucial animal instinct that has evolved in humans and must be prevalent in any successful new system. 

Business 

Although many base-level innovations derive from government funding, business structures and entrepreneurship are what make the actual economy work. The energy that self-preservation and prosperity bring to any system are what drives innovation and incentivises action, whether positive or negative. 

Unfortunately, the often singular focus for institutional investors and businesses is to maximise return on investment. This has invariably led to destructive industrialised business models that extract from our planet without replenishing what is left behind. Unintentionally the incentive-driver here has caused many global challenges, but conversely has also delivered humanity from caves to the technological world we populate in 2024. 

As a species we will always seek to have a good life and prosper, as we should. Therefore any system must include an ROI-driven business model that is attractive to those human instincts if it wants to scale. 

Philanthropy 

There are thousands of philanthropic organisations or individual charities in today’s world that have an incredible impact. However, they are not scalable, the economic conditions of our world do not support them. Earth’s recovery and conservation will be forever doomed if we rely on instruments that negatively impact individual financial wellbeing. 

We must also recognise that the impact of such organisations is incredible and is made possible because humans instinctively find giving and helping others rewarding and fulfilling. It triggers a part of the brain that makes one feel recognised, noble and perhaps righteous. 

With the global challenges we face, this instinct is required to scale impact. A caveat is that creating impact cannot be purely altruistic, today’s economy makes that impossible at scale.  

Conclusion of problem analysis

The world is in trouble and the only way to genuinely solve it is to implement new alternative, yet complimentary, systems. Beyond any reasonable doubt our existing structures have failed in terms of planetary health and future-proofing Earth for sustainable life. 

The only answer is a new type of system that combines the security, community and collective intelligence of a decentralised governance structure. The economic energy and financial incentive of a business where ROI triggers self-preservation, prosperity and therefore action. The impact of a charity that triggers the human need to be seen as noble and feel fulfilment, but without the economic cost. 

“Insanity is doing the same thing over and over again and expecting different results” 

– Albert Einstein

Real change requires new systems. 

With these considerations in mind, we have created a win:win or positive-sum system. By placing incentives triggering natural human instinctive behaviours to drive actions that serve our people and planet.