Growth and sustainability (part 2)
eco-innovation as part of an eco-friendly corporate identity. The Economy for the Common Good Impact Reports supply businesses a matrix against which to score their sustainability, and consumers the knowledge to participate in ‘regenerative businesses’. 27
This nudge policy can be extended by mandating companies to fully internalize the social and environmental costs (‘externalities’) of their actions: environmental
footprints (e.g. CO2 emissions) are given a monetary value. Getting prices ‘right’ is tricky but, with complex mathematical calculations, absolute sustainability (quantifiable measures of ecological boundaries) can be deployed through systems such as the Pigouvian tax to achieve an efficient equilibrium (see figure 8). 28 Coordinating efforts from the policies above forces a capitalist system to operate within the earth’s limitations but without hindering the growth of businesses. To ensure (transparent) corporate compliance with these measures, governments need to direct businesses to participate in the ESG ecosystem, to streamline ESG data and create organizations (EU’s Corporate Sustainability Reporting Directive) that set global standards. Conclusion In conclusion, economic growth must be pursued in relation to self-sustaining ecosystems and generational equity. Strategies to build resilient ecosystems include the net zero approach for manufacturing countries (LICs), creating a regenerative circular economy and subjecting capitalism ESG standards. Democratic politics is equally vital, catalysing green and experimental policies (trade, financial, private, public) to spread through the global economy. It's time to partner up with the environment. Figure 8: The Pigouvian Tax
27 I amsterdam. (2025, April 25). BBB | Economy for the Common Good track . See https://www.iamsterdam.com/en/business/impact/how-we-can-help/accelerate-your-impact/bbb-economy- for-the-common-good-track. 28 Hjalsted, A. (2022, September 15). Defining Sustainability: Absolutely | Anjila Hjalsted | TEDxGoodenoughCollege. See https://www.ted.com/talks/anjila_hjalsted_defining_sustainability_absolutely.
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