#21: When The Mainstream Moves: EY's New Economic Unit & How SCI Builds On Its Findings
You know things are really starting to shift when mainstream consultants like Ernst & Young establish dedicated units and start to publish inflammatory reports.
Meet EY's New Economic Unit
EY's newly formed New Economic Unit is a testament to this change, focusing on the systemic shifts required for a regenerative economy. In their inaugural report, "A New Economy," EY synthesizes insights from system change experts and highlights critical takeaways:
Crises at a Crossroads: Rapidly escalating environmental, social, and political crises pose severe threats to business, the economy, and society.
Systemic Flaws: The root causes of these intertwined crises, or "polycrisis," include unsustainable growth, overconsumption, a linear economy, financial capital myopia, short-termism, and siloed thinking.
Guiding Principles: Transitioning to a regenerative economy and a flourishing society requires principles like sufficiency, circularity, systems thinking, redefined value, and equity and justice.
Influential Forces: Policy, technology, citizens, finance, and business are key forces that can either inhibit or accelerate this transition.
Building on the EY Report
The EY report is a starting point, intended to facilitate system change collaboration and research. Building on the EY report, additional tools and structures needed to achieve a regenerative economy include:
A Clear Vision: We need an easily understood and objective vision of a sustainable society that resonates with policymakers, business leaders, and the general public. A vision rooted in objective reality, primarily nature and its laws and limits.
Deeper Analysis: Understanding the root causes of systemic issues is crucial. Problems like unsustainable growth and overconsumption are symptoms of deeper systemic flaws. These flaws favor extraction and degeneration over sustainability and regeneration, compelling businesses and citizens to engage in these and other harmful behaviors.
A Whole System Roadmap: We need a comprehensive roadmap that identifies both general and specific systemic changes necessary for a sustainable economy and society.
Practical Strategies: Clear, specific, and profitable strategies are essential for engaging the financial and corporate sectors in system change.
To Good News: These Tools and Structures Already Exist!
We know, it may well sound too good to be true. But for over 20 years, the founders of System Change Investing (SCI) have been pioneering practical system change strategies, drawing on extensive experience in responsible investing and corporate sustainability. As a result, we are now in a position to offer tools and approaches to fill the critical gaps described above:
Global System Change (GSC) Framework: Provides a holistic, nature-based foundation for defining a sustainable society and the systemic changes required to achieve it.
GSC Book Series: Offers an in-depth assessment of root causes, system flaws, barriers, leverage points, and solutions necessary for a sustainable future.
SCI: The most effective form of system change-focused investing, designed to be easy to implement, widely applicable, and return-enhancing.
Total Corporate Responsibility (TCR): Combines traditional sustainability strategies with system change at the sector and overarching system levels.
Partnering for a Sustainable and Prosperous Future
The SCI team is dedicated to helping investors, companies, and policymakers implement effective system change and sustainability strategies. For more information, visit our website SystemChangeInvesting.com or contact us directly.