A short introduction to NExus thinking
Building a new value proposition that makes a difference?
Have you heard of the Nexus?
Here is a short introduction.
Why it is strong.
Why many struggle with it.
And why you should embrace it anyway.
What Is Nexus Thinking?
The Interrelationships of Water—Food—Energy
Nexus thinking involves considering the interrelationships between water, food, energy, and the environment, rather than viewing them in isolation. This strategic and holistic approach weighs and balances social, economic, and environmental goals, promoting long-term sustainability and therefore the right to operate.
Why the Business Case for Nexus Thinking Is Strong
Nexus thinking enables companies to:
Identify Risks: Resource dependencies, such as water or energy, can be critical vulnerabilities. Nexus thinking highlights these risks and their interdependencies, allowing businesses to mitigate them.
Drive Innovation: By understanding trade-offs and synergies between resource systems, companies can design innovative solutions that address multiple challenges at once.
Future-Proof Operations: Adopting a systems-based approach helps businesses anticipate regulatory changes, resource shortages, or shifting market demands, ensuring long-term resilience.
Despite this potential, few businesses have fully embraced this idea.
Why Companies Struggle to Adopt Nexus Thinking
Complexity of Systems: Understanding the interconnections between water, energy, and food requires significant expertise and data. Many companies lack the resources or capabilities to model these systems effectively.
Short-Term Focus: Businesses are often driven by quarterly results, making it difficult to invest in long-term strategies like nexus thinking that may not deliver immediate returns.
Fragmented Responsibility: Resource management is typically siloed within companies—different teams handle water, energy, or sustainability—making it hard to implement a holistic approach.
Unclear Accountability: Without clear frameworks or regulations incentivizing nexus approaches, companies may prioritize compliance over innovation.
Why you should use Nexus Thinking as a Tool
Even without perfect solutions, nexus thinking offers businesses a powerful lens for understanding the complexity of the systems they rely on and operate within
Awareness of Trade-Offs: By highlighting how decisions in one area impact others, nexus thinking helps companies make more informed choices.
Guidance for Investment: The framework identifies opportunities to invest in natural capital, creating value while reducing vulnerabilities.
Strategic Advantage: Companies that adopt nexus thinking demonstrate leadership by proactively addressing systemic challenges, enhancing reputation and stakeholder trust.
Nexus offers a way to transition from sustainability programs to strategic investments in natural capital. It’s not about having a perfect solution today—it’s about building the awareness and tools to guide your business toward a resilient, sustainable and therefore bright future.
By adopting nexus thinking, your company can begin to navigate the complexities of interconnected resource systems, unlocking the potential for a win-win-win: