How to tip social systems (for the better, of course?)

In September 2022, the University of Exeter convened an international meeting titled ‘Tipping Points: from climate crisis to positive transformation’.  Part of the conclusion, and the subject of subsequent work (See USS outlines new climate scenarios for improved decision making), is the idea that ‘positive social tipping points’ are probably the fastest and most powerful way of addressing the climate crisis. That is the origin of this thought piece – how might we tip a social system?

Let’s start by creating a model to represent a generic social system. The model will be in the form of a network that has nodes and connections. The nodes will be entities that are capable of making decisions – so individuals and business (but with scope to go more abstract into algorithms, smart contracts and generative AI). The connections between nodes are flows. As we are considering social systems, these flows can include virtues like friendship, help and love, as well as more typical flows like information, money, goods and services.

Complexity science often refers to systems performing computation (they work out the best allocation of resources – the ‘invisible hand’), so let’s use computers as an analogy. A computer has an operating system and the real world equivalent is the ‘rules of the game’. The ‘rules of the game’ is shorthand for a very large set of layered ‘commands’ which govern the behaviour of individuals and corporations. They include international, national and local laws, as well as unwritten values and norms that govern ‘how we do things in this part of the network’[1]. They therefore encode the prevailing ideology (eg capitalism is the best way to organise an economy), amongst other things.

Similarly, the ‘software’ describes how the node processes incoming information and makes decisions. Some of the node’s decision-making algorithm may be standard across most local nodes, but some of the lines of code are likely to be bespoke and dependent on individual context. For example, the majority of nodes at the present time are likely to have a component in their algorithm which encodes the following sentiment: “the products of fossil fuel companies are currently required for internal combustion engines; AND immediately cutting off the supply of those products would be more harmful than beneficial”. We can imagine that the algorithm of a climate activist encodes a conflicting, or opposite, sentiment.

Using this mental model, we now have a line of sight to the answer to our question – how might we tip a social system? We can change the information flowing through the network; we can change the individual decision-making algorithms; or we can change the rules of the game that apply to all nodes.

In essence, our desire to tip a social system implies a number of things:

Sponsored Content
  • The behaviour of the social system is currently suboptimal (against some objective; this is likely to be a value judgement)
  • The behaviour of the components of the system might be suboptimal (against the larger, system objective)
  • We have identified a mechanism by which we can easily change the behaviour of at least some of the components (a tipping point implies we are looking for small changes that can have a large effect)
  • The change in behaviour of those components will propagate through the system, causing other components to change their own behaviour
  • The aggregate result of the changed components, will be significant change at the system level.

Our mental model shows how we might attempt to intervene within the system to bring about the change we desire. Most powerful, but most difficult, is to change the ideology (operating system). For example, we could seek to replace “growth is good” with “growth that damages the ecology or the environment is bad”.

We can also lobby for changes to the law. Many countries have already signed into law net-zero emissions commitments, opening the door for further laws to aid its achievement. This would change the societal incentive structure (the rewards and punishments attaching to behaviours). For example, a law that changes the price structure will trigger multiple behaviour changes.

Next, we can try to change the software. Because we are dealing with social systems, this will include a consideration of values and ethics, not just beliefs about how the world works. For example, does a human life in the global south have the same value as a human life in the global north?

I would argue that our current algorithms imply it has a lower value. If that is an uncomfortable, or even abhorrent, thought, then you are free to adjust your own algorithm accordingly – but the change might not produce as much financial return. To push a social system over a tipping point, we are effectively looking for the equivalent of a computer virus – a change in code that spreads through the network, altering the algorithm of each node it ‘infects’. This is what climate activists believe they are trying to do.

Finally, we can seek to change the information flowing though the network (the inputs to the algorithms). In a sense, this is what climate science has been trying to do.

In this thought piece I have only been able to sketch the initial idea. However, it seems to me that the conversation over social tipping points would be greatly enhanced if it included the change mechanism it was seeking to employ, in order to trigger the system change it would like to see.

Tim Hodgson is co-founder and head of research of the Thinking Ahead Institute at WTW.

[1] In the framing offered by Donella Meadows in Leverage Points: Places to Intervene in a System, our rules of the game relate to her three most significant (and hardest) intervention points – the mindset out of which the system arises; the goals of the system; and the rules of the system (such as incentives, punishments, constraints)

Leave a Comment

La Caisse’s oil exit pays off as renewables portfolio pulls ahead of fossil fuels

La Caisse’s oil exit pays off as renewables portfolio pulls ahead of fossil fuels

Divesting from the oil sector has been a boon for La Caisse’s performance, as the Canadian pension giant says its energy investments have earned billions in value-add compared to the benchmark since the inception of its climate strategy. Head of sustainability Bertrand Millot unpacks the fund’s approach in an interview with Top1000funds.com.

Sort content by

CalPERS’ role in tackling racism

CalPERS has a moral imperative to confront racism and economic inequality, according to its president, Henry Jones, who spoke to Amanda White in a conexust1f.flywheelstaging.com Sustainability series podcast about his own experiences growing up in the segregated south and the role of investors in shaping a future which is just, equal, inclusive and deeply grounded in fundamental human and civil rights.

Volatility top of mind at NYCERS

John Adler has been chief pension investment advisor to New York City Mayor Bill de Blasio since 2015 and sits on the board of four of the five New York City retirement systems. He spoke to Amanda White about the most pertinent conversations around the board tables, the outlook for the five city plans, and the complex job of balancing politics, pensions and investments.

Crisis and interdependence

This crisis may be an opportunity for transformational change, and Colin Melvin sees investment managers starting to realise their shared purpose with their clients.

Investors must act on DoL proposal

Investors  have only a few days to comment on the US Department of Labor’s proposed amendment to investment duties regulation and ESG – which many believe is out of step with the market and potentially damaging to retirees’ retirement income – with the window for comment closing on July 30.

The need for urgent action on climate

Nigel Topping who was appointed by the UK Government as the High Level Climate Action Champion for United Nations climate talks, COP26 joins Fiona Reynolds, chief executive of the PRI, in conversation with Amanda White, editor of Top1000funds.com This episode focuses on climate change and how, amongst and despite, the short-term focus of this COVID-19 crisis, we can mobilise government, business and investors into action around this important issue of climate change.

Strategy at Canada’s newest pension plan

Barbara Zvan started her job last week as the inaugural CEO and president of UPP, the new pension fund that will pool three existing Canadian university pension funds. She talks to Amanda White about the plans for the fund including the mix of internal and external management.

Previous