From the Co-founder and CEO<strong>Abundance</strong> <strong>by</strong> <strong>Design</strong>IN AUGUST 2004, WHILEhelping visionary developerTatsuo Akimura articulatethemes for his Kobunaki ecovillagenear Osaka, I thought ofa phrase—“abundance <strong>by</strong>design”—that encapsulates notjust his project but what we doat <strong>Rocky</strong> <strong>Mountain</strong> <strong>Institute</strong>.<strong>Abundance</strong> is the opposite of scarcity. It substitutessufficiency for privation, contentment for envy, tranquilityfor conflict, synergy for tradeoff. Just as wastespawns scarcity, elegant frugality fosters abundance.RMI creates abundance <strong>by</strong> wringing far more benefitfrom energy, water, materials, and other resources, andshowing people how to do more and better with lessfor longer. We reveal how to meet the needs of asecure, just, prosperous, and life-sustaining world not<strong>by</strong> felling the last tree and catching the last fish, not <strong>by</strong>scraping the bottom of the barrel from the ends of theearth, but <strong>by</strong> innovative design, rigorously applied andvigorously promoted.<strong>Design</strong> is the alchemy of purpose into artifact. Ittranslates intention into action. Bad, dis-integrateddesign causes many of the world’s problems, boostingcost, complexity, and inefficiency. RMI aims to makebad design unmarketable. In buildings, vehicles, andvery diverse sectors of industry, redesigning roughly$20 billion worth of facilities in recent years, RMI optimizeswhole systems for multiple benefits and “tunnelsthrough the cost barrier,” turning diminishing intoexpanding returns. Often such holistic designs areinspired <strong>by</strong> “biomimicry” (p. 10).Efficient and restorative use of resources is part ofRMI’s broader vision of “natural capitalism”(www.natcap.org). Natural capitalists also manufacturethe way nature does, with closed loops, no waste, andno toxicity; adopt business models that reward theseshifts; and reinvest profits into natural and human capital.RMI’s practice integrates all these elements into anew way of doing business that’s alluringly profitable—largely because efficiency costs less than the resources itsaves. This turns seeming burdens like oil-independenceand climate protection into keys to wealth and competitiveadvantage. To quote Martin Melaver (a Georgiagreen developer), the buck starts here.©Judy HillRMI’s ju – jitsu spreads “abundance <strong>by</strong> design” <strong>by</strong>redirecting the unmindful market forces that drivewealth-destroying depletion, destruction, and pollution.Our experts help early private-sector adopters ofnatural capitalism, especially of radical energy andresource efficiency, achieve conspicuous success sotheir rivals must follow suit or lose share. This competitionimplements and refines concepts while earningconsulting revenues that cover most of the <strong>Institute</strong>’scosts. Such “applied research” simultaneously carriesout our mission, funds research, leverages grants anddonations, and creates rapid learning, immediatepractical application, teachable cases, credibility, andeffectiveness. In collaboration with many partners, it’sstarting to make “abundance <strong>by</strong> design” the engine ofthe next industrial revolution.Our latest and largest application is Winning the OilEndgame (www.oilendgame.com). This independent,peer-reviewed synthesis demanded extraordinary commitment,effort, and sacrifice, and the five primaryresearcher/authors drew on the skills and time of everyonein the <strong>Institute</strong>. But it was worthwhile and timely.Our study presented the first solution that makes senseand makes money—a detailed roadmap for eliminatingU.S. oil use, more cheaply than buying oil at half today’sprice. Now we’re starting a three-year, nearly $4-millioneffort—the most ambitious we’ve ever undertaken—toturn these findings into reality (pp. 4–5).That’s part of a disciplined <strong>Institute</strong>-wide effort togo beyond merely articulating clear, practical, profitablesolutions. More and more, we’ll make themactually happen, with accountability, feedback, rapidlearning, and wide outreach-<strong>by</strong>-example. The fiscalyear from mid-2004 to mid-2005, reported herein,has brought encouraging progress toward deeper andwider implementation, which our new strategic planwill intensify. In short, we’re designing and executingnew ways to make our ideas self-evident, ubiquitous,and…well, abundant.To all our companions and supporters in this journey,and to the Trustees and colleagues who carry itsburdens, I am deeply grateful.AMORY B. LOVINS2
From the Executive DirectorRMI’s Bridge Construction: People at WorkIN LAST YEAR’S ANNUALreport, I described our effortsin “building a bridge to RMI’sfuture” based on findings fromour planning sessions withadvisors, Trustees, friends, andcolleagues. In mid-July 2005,we finalized a business planfor RMI’s Research &Consulting division that incorporated and expandedupon those findings. The plan lays out stages for thesolid and permanent construction of the bridge thatensures RMI’s future viability and effectiveness.With approval of the business plan <strong>by</strong> our Board,we have commenced bridge construction with seriousand immediate capacity-building for our Research &Consulting (“R&C”) group. First, we promoted Dr.Joel Swisher, PE from leadership of the Energy &Resources Team to the position of R&C ManagingDirector. Former Managing Director Kyle Datta hasbeen named R&C Senior Director and works acrossall teams with project and business development.From August 2005, long-time friend and colleagueGreg Franta, FAIA leads our RMI/ENSAR BuiltEnvironment Team, which includes several staff membersfrom Greg’s firm ENSAR. This new name for ourformer Green Development Services group reflects significantnew skill sets that increase the depth andbreadth of RMI’s ability to tackle a variety of opportunitiesin the built environment.In September 2005, we also welcomed two seniorpractitioners: John Anderson, PE, our new Energy &Resources Team leader, and John Waters, our newIntegrative <strong>Design</strong> Team leader. John Anderson bringsmore than twenty-five years’ experience in the energysector—including a successful career with theNational Renewable Energy Laboratory and its predecessor,the Solar Energy Research <strong>Institute</strong> (SERI)—toRMI’s work in energy resource investment strategies,carbon management, and distributed resource programdesign and evaluation. Engineer John Watersbrings more than twenty years’ experience in productdevelopment and manufacturing at GeneralMotors and Delphi. His experience will complementthe skills of our Integrative <strong>Design</strong> Team members asthey develop RMI’s methodology in whole-systemdesign and apply it across resource-intensive industries,primarily at the manufacturing and facilitylevel. With this senior leadership in place, we willcontinue to build an excellent line-up of projectmanagers and to support rising stars within theseteams that take our work into the world.One of the reasons RMI has had such an earlysuccess in capacity-building is the work of our firstprofessional human resources director. We are seriousabout retaining and supporting the remarkablestaff RMI has been able to attract. Dr. DavidRothstein, our new HR Director, is therefore improvingour personnel policies and professional developmentgoals and strengthening all the foundations oforganizational maturation and growth.This gratifying increase in capacity comes at anopportune time in the life of the <strong>Institute</strong>, as it steadfastlyproceeds to implement one of its most importantpieces of work—Winning the Oil Endgame, (pp.4–5). We are committed to this bold and timelyproject that blends so closely with our other work,both strategically and substantively. With the newhands and minds buttressing RMI’s already ableResearch & Consulting group, we look forward tothe coming year. Certainly, we will have the strengthto meet the challenge of our mission.MARTHA C. PICKETT<strong>Rocky</strong> <strong>Mountain</strong> <strong>Institute</strong> Annual Report: 2004–053