Economic sustainability1 min read
The concept of economic sustainability has evolved during the time. In general, it indicates the continued success of an economy over time. More recently, new further elements have been added and the definition refers to the way an economy operates in a sustainable manner, embedding environmental and social factors.
Lots of regulators start to include ESG factors in their laws and legislations.
For example, European Union provides full disclosure about what the EU is doing to protect its environment – air, water, nature, biodiversity, and so on.
As a matter of fact, the Environment Directorate General of the European Commission (“DG Environment”) was set up in 1973 to protect, preserve and improve Europe’s environment for present and future generations.
The Commission proposes policies and legislation that protect natural habitats, keep air and water clean, ensure proper waste disposal, improve knowledge about toxic chemicals, and help businesses move towards a sustainable economy.
However, economic sustainability is not just related to the environment. To fully accomplish it, we need to consider also social factors, such as the number of people below the minimum living standards.
It doesn’t have to sound strange that the first Sustainable Development Goal is “No poverty”. Yes. Just the SDG 1.
According to United Nations, more than 700 million people (10% of the world population), still live in extreme poverty and are struggling to fulfill the most basic needs like health, education, and access to water and sanitation.
Inequality harms growth, poverty reduction, and ecosystem sustainability. On the other hand, economic development and poverty reduction strongly depend on improving the management of the environment and natural resources.
End extreme poverty, increase environmental sustainability. But to end poverty it is important to ensure equality and sustainability as well.