My Power
A sustainable future requires a paradigm shift in how we organise our societies and economies. The key is to broaden our understanding of value when making decisions. Investment decisions must not focus solely on maximising financial returns. Instead, we need to optimise value holistically, recognising and including the environmental, climate, social and health consequences of a decision alongside its financial implications. How can we secure a sustainable future in which all living beings thrive and we respect the planet's limits if, at the same time, we act as profit-maximising individuals who assume that resources are unlimited?
Don't get me wrong. Economic growth and financial value creation are good and important, but they must take the well-being of the planet and humanity into account. In this respect, I am cautiously optimistic. In my work as an economic adviser, I see senior leaders in both the private and public sectors balance financial returns against social, environmental and climate consequences when making strategic decisions. Environmental, Social and Governance (ESG) considerations in transactions and investments are not just a matter of compliance; they also offer commercial opportunities. Working with three bottom lines or currencies is increasingly becoming a reality: for example, money, CO₂ equivalents and WALYs, well-being-adjusted life years.
The development is driven by companies that want to make the world a better place tomorrow than it is today. But a sustainable business strategy is also the path to the best financial results in a long-term perspective. Companies cannot make a difference if they are not financially sustainable. But financial sustainability depends on companies being able to sell their products and gain access to the necessary resources; both materials and employees, and this is becoming increasingly difficult - and associated with great risks, if the company does not take into account the environment and social aspects.