What does planetary boundaries mean?
Planetary boundaries is a scientific framework published by the Stockholm Resilience Centre in 2009. It defines nine Earth-system thresholds within which humanity can operate safely. Crossing these boundaries increases the risk of irreversible change in Earth's ecosystem.
The nine boundaries are: climate change, biosphere integrity (biodiversity), land-system change, freshwater use, biogeochemical flows (nitrogen and phosphorus), ocean acidification, atmospheric aerosols, ozone depletion and novel entities (including microplastics). According to research, six of them have already been crossed.
Why are planetary boundaries a business matter?
The World Economic Forum has estimated that more than half of global GDP depends directly or indirectly on nature. Each crossed boundary increases transition and regulatory risk, while opening opportunity for companies whose business models help return us to safe boundaries.
Investor approaches such as those developed by the World Benchmarking Alliance and Sitra measure a company's business and portfolio in relation to planetary boundaries. This is starting to influence the cost of capital.
Planetary boundaries and doughnut economics
Kate Raworth's doughnut economics sits on top of planetary boundaries: the outer ring is the ecological ceiling and the inner ring is the social foundation. The "safe and just space" of the doughnut is where human needs are met within planetary boundaries.
In practice for a company
Companies use planetary boundaries in strategy work as a basis for materiality assessment, as a frame for risk analysis, and as scientific underpinning for climate and nature targets. For example, S Group calculated its operations' nature footprint, and Metsä Group has built a regenerative forestry metric system, both anchored in this framework.
Related concepts
- Doughnut economics, which sits on top of planetary boundaries.
- Nature-positive business, a way of operating within planetary boundaries.
- Regenerative growth, which seeks to return us to safe boundaries.
- Regenerative economy, the economic counterpart to planetary boundaries.