“Europe 2020, a strategy for smart, sustainableand inclus“ive growth”
Europe has to attain sustainable and lasting development, which should be based on promoting a more resource efficient, greener and more competitive economy
- I. Reducing environmental risks and ecological scarcities (There is growing awareness that our global
economy is environmentally unsustainable)
II. Social conditions (A sustainable economy must
tackle social problems and deliver social justice)
III. Economic efficiency (Economic development has traditionally required a growth in the gross domestic product. But the sustainable economy must at some point stop
growing, but it need not stop developing)
Characteristics of a sustainable economy:
- 1. Stabilises concentrations of greenhouse gases in“the atmosphere at a ‘safe’ level.
- 2. Builds resilience of natural and human systems
3. Minimises pollution.
4. Invests in protecting biodiversity and restoring the productivity of ecosystems.
- 5. Builds capacity for individuals to participate in the economy and supports sustainable livelihoods.6. Incentivises behaviour change in line with the sustainable economy.
7. Promotes fair terms for all global trade, in order to facilitate greater levels of economic equity.
8. Promotes the free flow of information and knowledge.
- 9. Builds the cost of all social and environmental externalities into valuations.10. Promotes the equitable distribution of resources.
- 11. Maximises the material efficiency of the economy.
12. Maximises land use efficiency.
13. Measures wealth by more than just GDP, including measures such as human development and wellbeing.
14. Allocates capital sustainably through financial markets to cope with a changing climate.
Individual – Company – Region – State – Planet
Social equity Economic efficiency
No one these days seriously denies the need for sustainable business practices. Even those concerned about only business and not the fate of the planet recognize that the viability of business itself depends on the resources of healthy ecosystems – fresh water, clean air, robust biodiversity, productive land – and on the stability of just societies
The motivation is a force that pushes a person to do something, but leaves it to free choice
The ability of a person to freely choose their way of development and decision-making stipulates that level of quality of life and work, which is now in society
External and internal motivational determinants
The exterior includes such motivational determinants which influence on leaders from outside and can be considered as:
- a. Compulsion (environmental fees and charges; emissions trading pollution; penalties for environmental pollution)
- b. Encouragement (funding for environmental measures; environmental insurance)
Internal motivational determinants influence managers by contacting their mind and senses.
- a. The opportunity to receive benefit or reward
(a potential to gain certain advantages in the market, access to foreign markets, positive attitude and support from the public authorities and local governments)
- b. The conviction (socialization of each individual through the assimilation of the values and norms of morality and ethics, as well as through personal interaction with the environment)
At the level of enterprise the concept of sustainable development can be implemented based on the principles of:
- i. social responsibility and
ii. voluntary environmental management tools, including: quality management system; environmental management system; management system of health and safety at work; cleaner production; environmental labeling; program of responsible behavior etc.
Some recommendations on how to make a sustainable economy a reality
- I. Investors should actively seek ways to allocate capital to certain activities that will underpin a sustainable economy, and should continue to reassess this in the light of new technologies and new evidence. They should actively seek ways to reduce their investment in activities that are not aligned with a sustainable future. They should explore new business models that enable greater sustainability.
- üBusinesses that produce low-impact products efficiently;
- üBusinesses that are positioned to benefit from a closed-loop system;
- üInnovative approaches in manufacturing process and distribution;
- üHealthcare products/services that are designed to improve access for the most disadvantaged
- ü‘E-health’ initiatives and other new products/services that help people to access information,
manage their own health and overcome the problem of limited access to healthcare;
- üSources of cost-effective medicines and healthcare services that can challenge the dominance of
global healthcare players;
- üEmerging approaches to identifying infectious diseases at the earliest opportunity, in order to help
prevent or restrict epidemics;
- üConcentrated solar power;
- üThe rapid scaling up of all forms of renewable power;
- üInvestment in new geothermal and marine technologies;
- üEnergy efficiency improvements to buildings and vehicles, and in the chemicals, cement and
- üImprovements in aspects of conventional vehicles that are already in widespread use to increase
energy efficiency and reduce CO2 emissions;
- üPublic transport infrastructure, including the expansion of electric-grid capacity to support the
electrification of transport;
- üBattery storage technology;
- üUrban vehicle-sharing schemes;
- üThe development of advanced biofuels and more efficient propulsion systems for aviation;
- üThe design and construction of ‘clean ships’ – vessels designed to maximise the opportunities for
improved energy efficiency and reduced environmental impact.
- II. Companies, supported by investors who recognise and value these approaches, should:
- üReport on their impacts and dependencies with regard to natural and social capital, whether positive or negative. This should include assessments of future risks and opportunities, and should start with mandatory carbon reporting. A sustainability report is a report published by a company or organization about the economic, environmental and social impacts caused
by its everyday activities. A sustainability report also presents the organization's values and governance model, and demonstrates the link between its strategy and its commitment to a sustainable global economy;
- üResearch and develop better ways of valuing natural and social capital, and better metrics to measure long-term business success;
- üEncourage suppliers to report on their own sustainability impacts, and report on supply chain impacts;
- üCommunicate much more about their vision, business model, long-term strategy and approach to risk;
- üIntroduce greater diversity at board level and take steps to ensure that non-executivedirectors are better able to challenge ‘business as usual’;
- üInvest in research and innovation to optimise sustainability performance;
- üSupport the public policy positions that are needed to deliver sustainability;
- üConsider corporate performance on environmental, social and corporate governance issues
when setting the remuneration of executive directors;
- üPublish corporate sustainability strategies – or explain why they are not able to do so.
III. Governments, supported by investors who lobby for these interventions, will need to focus on:
- üNew definitions of economic success that take account of natural and social capital;
- üThe introduction of suitable models for risk sharing in investment, particularly early-stage
- üStronger mandatory disclosure by pension funds about how they are thinking about the long
- üStrong international carbon mitigation targets and adaptation policies/plans that help poorer
countries in particular, with a fair approach to sharing responsibility for action within and
- üMandatory carbon reporting by companies;
- üStrong international food security policies; better healthcare provision and increased support
for family planning in developing countries; international investment funds for developing clean energy with public finance support; and the removal of all tax exemptions and subsidies that promote carbonintensive transport.