Circular Economy Forum Report

BUILDING SHARED PROSPERITY REPORT 2021

Diplomatic Courier and Watershed Partners

Diplomatic Courier and Watershed Partners

The Circular Economy Forum BUILDING SHARED PROSPERIT Y A REPORT BY DIPLOMATIC COURIER AND WATERSHED PARTNERS FEBRUARY 2021

Diplomatic Courier is a global media affairs network spanning 180 countries and five continents, connecting global publics to leaders in international affairs, diplomacy, social good, technology, business, and more. Our think tank, the World in 2050, convenes multi-stakeholders in the private and public sectors through a series of global summits and forums, educational material, research papers and reports, and digital and print media.

Watershed Partners is a collaborative design firm that facilitates multi-interest alignment toward shared outcomes. In times of change and opportunity, we bring people together to find common values, build healthy relationships, and collaboratively design resilient outcomes.

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Introduction According to the Ellen MacArthur Foundation, a circular economy is a systemic approach to economic development designed to benefit businesses, society, and the environment. In contrast to the ‘take-make-waste’ linear model, a circular economy is regenerative by design, and aims to gradually decouple growth from the consumption of finite resources.

We set out to explore the concept of a Circular Economy within the context of envisioning potential future states, in the company of diverse global innovators and community leaders.

The world is increasingly siloed. Even before the COVID-19 pandemic, globalization was in trouble. Although the flow of information is largely free, the movement of people, goods, intellectual property (IP), and capital is not. This is a unique moment in time to connect people who don’t usually work together and generate new ideas and solutions that benefit the whole of the economy: people, planet, and profit.

It is for this exact reason that on October 13, 2020, Diplomatic Courier and Watershed Partners hosted the Circular Economy Forum: Building Shared Prosperity. We convened fifty leaders from a diverse range of sectors and backgrounds—including education, infrastructure, healthcare, and business—to imagine how to better work together in pursuit of a shared and sustainable future.

The Circular Economy Forum—an annual World in 2050 convening—was held on the sidelines of the International Monetary Fund (IMF) and World Bank Group annual meetings, and was the second in a three-part journey of curated discussions and visioning of the future in 2050 hosted by Diplomatic Courier and facilitated

by Watershed Partners. We kicked off the journey with our first convening on September 22, the annual UN SDGs in Action: High-Level Forum to Achieve the UN Sustainable Development Goals, and it will culminate with a third convening titled Davos Dialogues: Achieving Transformational Success in the Education and Energy Sectors to be held in Spring 2021.

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The Circular Economy Forum provided an open space for participants to reflect on insights shared during the previous gathering and form uncommon, interdisciplinary connections while discussing the Circular Economy framework and its role in the future.

Ultimately, this meeting highlighted the urgency for cross-sector collaboration in achieving the goals embedded within a circular economy. Participants reflected on how to rebuild trust in national and global institutions, redefine leadership and success/failure models, and reimagine fragmented sectors such as education, infrastructure, and healthcare.

Format The conversation opened by introducing participants to three core themes related to what our world could look like in 2050 within the Circular Economy framework.

These themes were: •

Rethinking business models to design for the future;

•

Creating uncommon collaborations and interdisciplinary connections for the long-term; and

•

Digital technologies and new ways of working.

Participants were then divided into six breakout groups and challenged to consider these themes through the lens of the Three Horizons Model, first developed by Bill Sharpe of the International Futures Forum. The model suggests that we understand our collective paths forward through three distinct time frames: 1.

Optimal arrival points in 2050: Starting in the emerging future (2050), what is being born and how can we help it to arrive well?

2. The present day: In our ‘business as unusual’ world of today what is dying and how can we help it leave well?

3. And the disruptions to the status quo between now and 2050 as we collectively move toward the 2050 arrival points: What is being disrupted and how can it be harnessed, as opposed to simply being captured?

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While discussing these questions, participants were encouraged to be audacious and explore what 2050 could look like without feeling anchored to present-day conditions. They questioned working assumptions around production, services, resources, and capital, and considered how these might be transformed to best meet current and future demands.

To cap off this experience, participants reconvened to share high-level insights from each breakout session.

Key Takeaways Two interlocking ideas emerged during the event. The first of these ideas is the need to adopt a generational way of thinking and acting that go beyond serving present-day needs and instead, help fulfill long-term goals. The second idea centres on the need to be aware of underlying power structures that inform how systems are structured, how decisions are made, and who gets to take part in democratic processes. With those two ideas in mind, we identified six key themes from across participants’ conversations: 01

Centrality of UN SDG 17

02

Intergenerational Collaboration and Being Good Ancestors

03

Empowering the Transition

by Confronting Unconscious Bias

04

Money, Structures, and Incentivization to Empower Change

05

Responsible Data Stewardship

06

Reimagining Education for Inclusion in a Digital Future

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01

Centrality of UN SDG 17 Revitalizing global partnerships for sustainable development.

A radical re-envisioning of global partnerships is imperative to address inequitable power structures and build sustainable social and economic systems. To best harness our collective strengths in 2050, uncommon collaborations need to become more common, and public-private partnerships need to become more seamless.

More so, many of the outdated barriers that separate and isolate organizations, regions, and nations will need to be dissolved. Moving forward, all parties will need to align their efforts to adopting multi-stakeholder approaches and shared initiatives.

One critical way to emphasize the benefits of multi-stakeholder alignment, and ultimately support its increased uptake, is by focusing on outcomes that provide clear wins for all stakeholders.

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[ 01 ]

CENTRALITY OF UN SDG 17 How do we transform into the future we want?

2050

W H AT W I LL BE BOR N? H O L I S T I C & I N T E G R AT E D W AY S O F O R G A N I Z I N G FA C I L I TAT I N G C R O S S - S E C T O R A L C O L L A B O R AT I O N I N E D U C AT I O N , H E A LT H , B U S I N E S S , A N D G O V E R N M E N T. E N A B L I N G P O R O U S B O U N D A R I E S B E T W E E N O R G A N I Z AT I O N S , R E G I O N S , A N D N AT I O N S T O S U P P O R T S E A M L E S S C O L L A B O R AT I O N .

D E V E L O P I N G A S T R O N G E R , M O R E DY N A M I C G L O B A L W O R K F O R C E .

I N C E N T I V I Z AT I O N O F D E S I R E D O U T C O M E S E S TA B L I S H I N G E C O N O M I C I N C E N T I V E S T H AT D R I V E C O L L A B O R AT I O N .

F O S T E R I N G A G R O W I N G S E N S E O F A C C O U N TA B I L I T Y A C R O S S N AT I O N S .

B U I L D I N G H I G H L E V E L S O F S H A R E D T R U S T B E T W E E N C A P I TA L M A R K E TS A N D P U B L I C S E CTO R I N ST I T U T I O N S .

2040

W H AT W I LL BE H A R N E SSED? U N C O M M O N C O L L A B O R AT I O N S I N V E S T I N G I N T H E N E X T G E N E R AT I O N B Y L E V E R A G I N G C R O S S - P L AT F O R M C O L L A B O R AT I O N S .

E S TA B L I S H I N G P R I VAT E - P U B L I C PA R T N E R S H I P S A S THE NORM. E N S U R I N G A L L S TA K E H O L D E R S , PA R T I C U L A R LY T H O S E W H O H AV E B E E N H I S T O R I C A L LY M A R G I N A L I Z E D , H AV E T H E S PA C E T O C O L L A B O R AT E I N A D D R E S S I N G A N D D I S R U PT I N G ST R U CT U R A L I M B A L A N C E S .

I N C E N T I V E S A N D A C C E L E R AT O R S E S TA B L I S H I N G G O V E R N M E N T S U B S I D I E S F O R T H E A D O PT I O N O F N E W T E C H N O LO G I E S .

2030

W H AT IS DY I NG? L E G A CY I N S T I T U T I O N S .

I N C E N T I V E F R A M E W O R K S T H AT O N LY B E N E F I T S P E C I F I C S TA K E H O L D E R S W I T H I N A SYST E M .

2021 T O D AY

LEV EL S OF CH A NGE GLOBAL O R G A N I Z AT I O N I N D IVI D UAL

Diplomatic Courier and Watershed Partners

02

Intergenerational Collaboration Sustainable, circular economies are powered by long-term thinking.

To adapt to the needs of the future, individuals and institutions must think beyond the current generation’s immediate needs when making decisions, and orient our actions to ensure that future generations can inherit a better planet and more collectively-minded world.

In adopting this long-term approach, individuals and institutions should also invest in intergenerational collaboration and capacity building between leaders of all ages to establish the social infrastructure needed to make decisions grounded in the future. A sustainable world in 2050 will be made possible if we pair generational thinking with intergenerational coalitions.

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[ 02 ]

INTERGENERATIONAL COLLABORATION How do we transform into the future we want?

2050

W H AT W I LL BE BOR N? E N G A G E M E N T O F C O M M U N I T I E S A N D PA R T N E R S H I P S AT E AC H L E V E L D E V E LO P I N G A S T R O N G E R S E N S E O F B E LO N G I N G A N D AG E N CY W I T H I N A N D AC R O S S C O M M U N I T I E S .

N O R M A L I Z I N G N E W WAY S O F FA C I L I TAT I N G S O C I A L A N D E M O T I O N A L C O N N E C T I O N S , A N D B U I L D I N G R E L AT I O N S H I P S .

2040

W H AT W I LL BE H A R N E SSED? DESIGN FOR A DESIRABLE FUTURE I N V E S T I N G I N E A R LY C H I L D H O O D D E V E L O P M E N T. A P P LY I N G F R A M E W O R K S F O C U S E D O N L O N G -T E R M T H I N K I N G TO T R A N S F O R M C U R R E N T S O C I O - E C O N O M I C MODELS. I N C R E A S I N G C O M M U N I C AT I O N A C R O S S A L L A G E S A N D L E V E L S O F E D U C AT I O N T O S H I F T C O L L E C T I V E THINKING.

T H E P O W E R O F YO U T H P R O V I D I N G YO U T H W I T H P L AT F O R M S T H R O U G H W H I C H TO S H A R E T H E I R VO I C E S .

I N T R O D U C I N G YO U T H Q U O TA S I N C O R P O R AT E B O A R D S A N D C O M PA N I E S .

2030

W H AT IS DY I NG? T H E B O O M E R G E N E R AT I O N ’ S D O M I N AT I N G INFLUENCE.

LEV EL S OF CH A NGE

2021 T O D AY

GLOBAL

O R G A N I Z AT I O N I N D IVI D UAL

Diplomatic Courier and Watershed Partners

03

Empowering the Transition by Confronting Unconscious Bias People’s unconsciously held beliefs can reinforce change-resistant power structures.

To move forward and invest in our collective survival, our latent biases and firmly-held assumptions must be confronted on both individual and organizational levels. In today’s world, engaging in consumption is seen as a sign of success. We equate bigger with better, and hold oversimplified notions of the so-called developed world in contrast to the developing world.

To push back on these tendencies, there’s a defined need to recognize our collective interdependence, and shift from a shareholder to a stakeholder mindset. In 2050 there will be more responsible investment in core public goods, from public health, to social services, and democratic development.

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[ 03 ]

THE TRANSFORMATION STARTS WITHIN How do we transform into the future we want?

2050

W H AT W I LL BE BOR N? A W A R E N E S S O F S Y S T E M I C C H A N G E S T H AT N E E D T O TA K E P L A C E F O S T E R I N G AWA R E N E S S F O R T H E N E E D T O A C T I V E LY A D D R E S S I N E Q U I T I E S .

R E C O G N I Z I N G C O L L E CT I V E I N T E R D E P E N D E N C E .

D E V E L O P I N G S H A R E D B E L I E F I N T H E I M P O R TA N C E O F S U B S TA N T I V E LY I N V E S T I N G IN PUBLIC SERVICES.

I M PA C T F U L O R G A N I Z AT I O N A L M E T R I C S T O B E S T I N F O R M O U R F U T U R E C O U R S E E N S U R I N G T H AT T H E R E I S M E A N I N G F U L R E P R E S E N TAT I O N A N D F U L L A C C O U N TA B I L I T Y I N F U T U R E I T E R AT I O N S O F D E M O C R AT I C S Y S T E M S .

C H A M P I O N I N G O R G A N I Z AT I O N A L P U R P O S E T H AT S T E M S F R O M A B E L I E F I N S TA K E H O L D E R M A X I M I Z AT I O N , N O T S H A R E H O L D E R M A X I M I Z AT I O N .

U N D E R S TA N D I N G T H E M E A S U R E S O F S U C C E S S T H AT A R E R E Q U I R E D T O M O V E F R O M S H O R T-T E R M T O L O N G -T E R M T H I N K I N G .

2040

W H AT W I LL BE H A R N E SSED? THE INTERCONNECTEDNE S S OF (HUMAN) BEINGS S H I F T I N G O U R M I N D S E T F R O M O N E T H AT P I T S H U M A N I T Y A G A I N S T N AT U R E T O O N E T H AT S E E K S I N T E G R AT E D A P P R O A C H E S T O S E R V E A C O L L E CT I V E P U R P O S E .

TA K I N G B I G G E R I M A G I N A R Y L E A P S I N O U R M I N D S E X PA N D I N G M I N D S E T S B E YO N D T H E P U R S U I T O F ‘ D I G I TA L M O D E R N I Z AT I O N ’ T O E M B R A C E ‘ D I G I TA L T R A N S F O R M AT I O N ’ I N S T E A D .

C H A L L E N G I N G G D P A S T H E M O S T VA L U E D M E A S U R E M E N T O F N AT I O N A L G R O W T H .

F R A M I N G S U S TA I N A B I L I T Y A S A C R I T I C A L C O M P O N E N T T O C H A N G I N G T H E W O R L D , N O T A S S O M E T H I N G T H AT I S S U P P L E M E N TA R Y O R C H A R I TA B L E .

2030

W H AT IS DY I NG? ‘CONSUMPTION AS SUCCESS’ AND ‘BIGGER IS BETTER’ MINDSETS. C U LT U R E S O F D I S P O S A B I L I T Y. OV E R S I M P L I F I E D N OT I O N S O F ‘D EV E LO P E D/ DEVELOPING’ WORLDS.

2021 T O D AY

LEV EL S OF CH A NGE GLOBAL O R G A N I Z AT I O N I N D IVI D UAL

Diplomatic Courier and Watershed Partners

04

Money, Structures, & Incentivization to Empower Change To envision a more sustainable and prosperous future in 2050 we need to fundamentally rethink incentivization.

Corporate profit-driven models that focus on stock markets and shareholder maximization privilege short-term, quarterly-focused thinking. Systems of the future should include economic incentives that drive collaboration and environmental stewardship, reward corporations for being environmentally responsible, and support individuals and organizations—anywhere in the world—to adopt more sustainable, low-carbon practices.

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[ 04 ]

FOLLOW THE MONEY How do we transform into the future we want?

2050

W H AT W I LL BE BOR N? PEOPLE-CENTERED AND PURPOSE-DRIVEN INCENTIVE MECHANISMS C R E AT I N G D I F F E R E N T I N C E N T I V E M E C H A N I S M S T O C O L L A B O R AT I O N B E S I D E S ‘ W O R K F O R M O N E Y. ’ I N T R O D U C I N G C O R P O R AT I O N S T O S Y S T E M S T H AT M O N E T I Z E A N D T H U S , I N C R E A S E S U S TA I N A B I L I T Y P R A C T I C E S .

E N S U R I N G G OV E R N M E N TS S U P P O RT C I T I Z E N S AN D O R G A N I Z AT I O N S T O M I N I M I Z E WA S T E A N D E F F E C T I V E LY BECOME CARBON NEUTRAL.

2040

W H AT W I LL BE H A R N E SSED? W E PAY AT T E N T I O N T O W H AT W E PAY F O R E S TA B L I S H I N G A C C E S S I B L E PAT H WAY S T O S U P P O R T AL L I N D I V I D UALS — R E GAR D L E S S O F T H E I R S O C I O E C O N O M I C B A C K G R O U N D —T O I N V E S T I N T O S U S TA I N A B L E P R A C T I C E S A N D I N I T I AT I V E S .

E X P L O R I N G WAY S T O I N C E N T I V I Z E V E N T U R E C A P I TA L I S T S T O I N V E S T I N T O S U S TA I N A B L E CHANGE. C R E AT I N G I N C E N T I V E S T O D I S R U P T T H E I N E RTIA B E H I N D ‘ B U S I N E S S AS U S UAL’ THINKING.

2030

W H AT IS DY I NG? P R O F I T - F O C U S E D C O R P O R AT E M O D E L S AND UNFETTERED COMPETITION. ‘ B R A N D A B O V E A L L ’ T H I N K I N G T H AT L I M I T S A G I L I T Y A N D PA R T N E R S H I P OPPORTUNITIES.

2021 T O D AY

LEV EL S OF CH A NGE GLOBAL

O R G A N I Z AT I O N I N D IVI D UAL

Diplomatic Courier and Watershed Partners

05

Responsible Data Stewardship Data plays a large and growing role in nearly every aspect of our lives, and yet, there continues to be a deficit in data literacy and a wide-held assumption that an individual’s data remains private and secure.

If we are to meaningfully design a more sustainable future then we need to challenge how data is used while investing in the practice of data stewardship to ensure that the right data is used in the right contexts. Currently, the algorithms that empower data remove an individual’s ability to control their own data in service of increasing corporate profit margins for short-term gain.

In 2050, individuals retain ownership of their personal data while also retooling algorithms to share and leverage data to service public goods. This will allow us to use data to measure what matters and responsibly use Artificial Intelligence to augment human decision-making rather than replace it.

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[ 05 ]

DATA STEWARDSHIP How do we transform into the future we want?

2050

W H AT W I LL BE BOR N? M E A S U R I N G W H AT M AT T E R S S U P P O RT I N G I N D I V I D UA LS TO C O M M I T TO M E AS U R A B L E , A C H I E VA B L E TA R G E T S I N A C C O R D A N C E W I T H T H E U N I T E D N AT I O N S ’ S D G S .

U S I N G D ATA T O B E T T E R U N D E R S TA N D W H AT M AT T E R S M O S T TO D I F F E R E N T C O M M U N I T I E S .

I N T E L L I G E N T D E C I S I O N S S U P P O R T E D BY A I D E V E L O P I N G A I T H AT A U G M E N T S H U M A N D E C I S I O N - M A K I N G W I T H O U T R E P L A C I N G I T. L E V E R A G I N G A L G O R I T H M S T H AT D O N O T R E P L I C AT E O R R E I N FO R C E PR E EX I STI N G H U MAN PR EJ U D I C E S.

2040

W H AT W I LL BE H A R N E SSED? T H E S H I F T T O W A R D D ATA S T E W A R D S H I P T R A N S F O R M I N G T H E S O C I A L M E D I A I N D U ST RY ’S BUSINESS MODEL AND RE-ENGINEERING A L G O R I T H M S T O S E R V E H U M A N I T Y. E N S U R I N G T H AT I N D I V I D U A L S C A N O W N T H E I R P E R S O N A L D ATA .

D E V E L O P I N G AV E N U E S T H R O U G H W H I C H B I G D ATA I S S H A R E D F O R T H E P U B L I C G O O D .

2030

W H AT IS DY I NG? D I S C O N N E C T E D D ATA T H AT L A C K S CONTEXT AND PURPOSE. C O M P L E X D ATA S Y S T E M S T H AT D O N O T GAIN THE TRUST OF THEIR END USERS.

LEV EL S OF CH A NGE

2021 T O D AY

GLOBAL

O R G A N I Z AT I O N I N D IVI D UAL

Diplomatic Courier and Watershed Partners

06

Reimagining Education for Inclusion in a Digital Future Education systems, at all levels, are outdated.

Education systems were designed to support industrial economies and are ill-suited to prepare people for today’s dynamic global knowledge economy that is rapidly evolving through the influence of advancing technologies. Education systems, at all levels, are outdated. They rely on standardized testing rather than competency models, and learning is envisioned as an early-life activity that is left behind when an individual joins the workforce.

In the year 2050, education is refashioned as a tool for people to become more holistically intelligent, hone their soft skills, and understand our interconnectivity with the planet and with one another. To equip ourselves for this future, we must embrace interdisciplinary connections, deliver virtual modes of learning, and adopt life-long learning that is more inclusive, equitable, and accessible regardless of economic circumstance—at all scales.

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[ 06 ]

EDUCATIONAL REFORM How do we transform into the future we want?

2050

W H AT W I LL BE BOR N? H O L I S T I C A L LY I N T E L L I G E N T H U M A N B E I N G S E N A B L I N G S T U D E N T S T O U N D E R S TA N D T H E I R I N T E R C O N N E C T I V I T Y W I T H O N E A N O T H E R A N D T H E P L A N E T. E M P O W E R I N G ST U D E N T S TO D E V E LO P R O B U ST S O C I A L A N D E M O T I O N A L I N T E L L I G E N C E , A N D I N N O VAT I V E M I N D S E T S .

E S TA B L I S H I N G I N C L U S I V E A N D E Q U I TA B L E L E A R N I N G O P P O R T U N I T I E S T H AT R E M A I N A C C E S S I B L E F O R A L L S T U D E N T S .

2040

W H AT W I LL BE H A R N E SSED? E V E R YO N E I S A L I F E L O N G L E A R N E R E M P O W E R I N G A D U LT S T O C O N T I N U E O B TA I N I N G NEW SKILLS THROUGHOUT THEIR LIVES. E S TA B L I S H I N G D I F F E R E N T A P P R O A C H E S T O WORKFORCE TRAINING AND LABOR FORCE ADJ U STM E NTS.

T H E E D U C AT I O N R E V O L U T I O N E S TA B L I S H I N G S O C I A L A N D E M O T I O N A L LEARNING AND SOFT SKILLS AS CRITICAL C O M P O N E N T S T O M A I N S T R E A M E D U C AT I O N .

D E L I V E R I N G E D U C AT I O N V I R T U A L LY A N D E F F E C T I V E LY AT S C A L E .

R E S K I L L I N G A N D T R A I N I N G W O R K E R S FA S T E R T O M E E T R A P I D LY C H A N G I N G N E E D S .

2030

W H AT IS DY I NG? T H E E D U C AT I O N I N D U S T R I A L C O M P L E X .

O U T D AT E D P O S T- S E C O N D A R Y E D U C AT I O N S Y S T E M S .

LEV EL S OF CH A NGE

2021 T O D AY

GLOBAL O R G A N I Z AT I O N I N D IVI D UAL

Diplomatic Courier and Watershed Partners

Onward How societies approach economic development will become increasingly important as conversations around sustainability and future-proofing systems gain further traction. Convening leaders from a range of disciplines to dig into questions, draw out emerging themes, and share insights is invaluable when kick-starting systems change and co-designing a vision for the future, be it 2050 or beyond.

We would like to thank everyone who joined this meeting for participating with thoughtfulness and a keen commitment to dialogue. We believe that active participation in conversations of this kind are an avenue to shared success and meaningful, systemic change.

We look forward to facilitating more dialogues, just like this one, to move the dial on collaborative, sustainable development.

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