Page 75 - Shashwat - Restoring Green Economy

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GRIHA: Do the environmental benefits seen as a result of this
global slowdown (less smog, less turbid waterbodies, etc.) hint
at the potential positive impacts of green economies?

: Yes, they do, as in the experience enjoyed by many. But GHG emissions are now kicking up again,
JEof radically clean air in many cities so the benefits will be short term. So, we have had a glimpse of
and in countries like China, at least for what could happen if we acted in a timely and effective manner—
a while. The return of wildlife was also our challenge is now to do precisely that.

GRIHA: Businesses and individuals have suffered a great deal due to the COVID-19
pandemic. As we look towards restarting businesses, what are the ways in which we can
sustainably restore/reform economies?
: We have recently worked with
JEthe World Business Council for Capitalism and its consequences for society and the
environment are very much in the spotlight. Even
Sustainable Development (WBCSD) to committed capitalists are beginning to argue that
examine the structural transformation of
capitalism necessary to realize WBCSD’s capitalism, in its current form, is unsustainable—
‘Vision 2050’ (over nine billion people living socially, environmentally, and economically. Yet
well within the means of the planet) and capitalism’s core features of private enterprise and
the role of business in bringing about those competitive markets are essential to addressing
transformations. The report, Reinventing our greatest societal challenges and unleashing the
transformations required to meet the Sustainable
Capitalism: A Transformation Agenda Development Goals (SDGs).
6
argues the case for radical reform:

Reinventing Capitalism synthesized The capitalism we need is one that and investors’ behaviour, adopt
the best available thinking on why rewards true value creation—not new and better ways of measuring
capitalism needs to be reinvented value extraction as today’s model performance, and tackle failures at
if it is to create the conditions for does. This means that all social and the market and institutional levels
long-term business success, and the environmental costs and benefits that favour financial value extraction
actions that business, investors, and should be internalized and reflected over true value creation. A reinvented
policymakers can take today to drive in the relative price of goods and model of capitalism that addresses
transformation. A key message of the services, and in companies’ profit and these failures will be characterized
work was that – ‘now is the time for loss statements, costs of capital and by five features, namely, stakeholder-
companies and investors to enter— market valuations. oriented, impact-internalizing, long-
and lead—the debate, not just about term, regenerative, and accountable.
why capitalism needs to change, The WBCSD report argues that if
but about how we (must) go about we are to get to such a version of Reinventing capitalism along the
transforming it.’ capitalism, we need to realign the lines suggested will, undoubtedly,
incentives that drive businesses be very challenging. It will require

6 For more details, please visit https://www.wbcsd.org/Overview/About-us/Vision-2050-Time-to-Transform/News/Reinventing-capitalism-WBCSD-lays
out-a-transformation-agenda-for-business