Institute for Sustainable Innovation

Green Growth for Sustainable Development

Green Growth for Sustainable Development 

The nature of risks has changed greatly at the planet Earth.  At the Davos Forum in 2017, it was first emphasized that environmental risks, andin particular those connected with climate, entered the top three most significant and most probable ones. That’s why it is very important to achieve resilience of companies, cities and settlements, regions and nations in such unstable environment. 

Green growth, that now is considered to be the most important development path, can help to adapt to the new global risks structure and find a way out of economic crisis. Such growth involves fostering the economic growth and development while ensuring that natural assets are used in a sustainable manner. 

Green growth includes:

  • the consumption of natural resources only within their reproductive capacity, while renewable or reusable resources are favored;
  • reduction of irreversible negative effects of economic activities on ecosystems, biogeochemical cycles and hydrological cycles;
  • creation of smart, less risky infrastructure of cities and settlements, application of new green technologies and materials in building activities and utilities sector;
  • maintenance of the resilience of companies in the unstable, rapidly changing world.

We are convinced that:

Green growth is an opportunity.

There is no contradiction between aiming to economic growth and green priorities

Green growth creates new challenges.

It implies systemic structural changes in the economy; it will be comprehensive and will require joining of all the efforts.

Green growth is interdisciplinary and intersectoral.

For green growth strategies of territories and settlements it is important to focus on:

Coordination of the goals of economic growth and sustainable development, which implies the application of new economic mechanisms of mutual strengthening of economic growth and conservation of natural capital. This will help to improve understanding of long-term interactions and trade-offs between environmental and economic goals.

The implementation of the green growth framework recognized by the world community, which implies: (1) the development and implementation of a set of measures to assess pollution and create incentives for the efficient use of natural resources and ecosystem services, priority should be given to more efficient use of cost-benefit analysis in development projects; (2) the introduction of a sectoral green growth policy mechanism to ensure the coordination of development policies both within and between sectors.

Dealing with the social consequences of green growth, which implies a more equitable distribution of benefits as a result of reforms and the promotion of inclusiveness to improve understanding of long-term interactions and trade-offs between environmental and social objectives.

Reviewed definition of progress, which determines the development of indicators to monitor green growth. This requires use of sectoral indicators of green growth, providing of systematic data collection to support new territorial indicators, application of key internationally recognized indicators to analyze progress towards green growth.

To improve the resilience of business in the context of increased environmental risks, it is efficient:

To focus on sustainable development goals and green growth, increasing labor productivity and reducing resource dependence, diversifying exports and entering new markets with high-tech products, which involve attention to responsible conduct of business and adherence to the principles of sustainable development throughout the value chain. This will help to improve understanding of (1) the value of natural capital (including ecosystem services and products) and the environmental risks, (2) the dependence of the economic and financial efficiency of economic activities on the use of natural capital and environmental risks. Orientation to green growth allows companies effectively adjust their development paths and more accurately determine costs and competitive advantages.

To attract attention to environmental risks, especially climate risks, as well as to reduce the natural resource and energy consumption during production, which nowadays determines the competitiveness and resilience of business. Boards of Directors should understand the ways these risks affect their growth strategies, and develop risk mitigation strategies to manage them and translate them into new opportunities. This corresponds with the long-term economic interests of business, preserving the environment, contributing to the improvement of the quality of life and social well-being of citizens.

To improve a brand and reputation in terms of sustainability, as the success of a business in a green growth world depends not only on the amount of profit, but also on the methods for making it, and public orientation towards sustainable development and reducing environmental risks creates a favorable image of the company. That’s why it is necessary to use the indicators of international public reporting.

We help companies to implement the principles of green growth in accordance with the business objectives and needs of stakeholders, including shareholders, investors, employees, regulatory bodies, etc. While implementing projects, we focus on providing operational and socially significant long-term services for increasing possibilities for both business and the population. We ensure the economic and social efficiency of projects for the development and technical re-equipment of enterprises characterized by an acceptable rate of return on investment made during the whole life cycle, and we give preference to the projects that ensure economic profitability in view of environmental risks in the long term.