Triodos – Long Term Outlook, 2024

In this report by Triodos – Long Term Outlook, 2024, the authors highlight how global wealth has increased since 2000, but the world is still far from achieving the 2030 Sustainable Development Goals. They also note that we are exceeding six out of nine planetary boundaries, indicating that we are not meeting the needs of the present generation while jeopardizing future generations. The authors argue that the root cause of this problem is our addiction to economic growth. Our economic system, government framework, capitalism, and financial sector all assume that continuous growth is necessary and desirable. However, this pursuit of growth has led to ecological degradation, such as biodiversity loss and climate change, as well as increased inequality. The authors stress that innovation alone cannot solve these challenges and that a discourse on growth itself is needed to find alternative routes to a sustainable economy. They outline three alternative pathways, drawing upon degrowth and post-growth literature, and discuss their implications on output, productivity, and employment. Finally, they explore the implications of these pathways for the financial sector and investors. Overall, the authors argue for a transformative change in our economic system to achieve a more sustainable future.