Measuring Progress in a Green Economy

An analytical framework of five measures can be used to measure the progress of the Green Economy, differing from traditional approaches of only quantifying material carbon reductions or GDP calculations. The framework consists of: Normative aspects; Institutional aspects; Discursive aspects; Resource Mobilisation and Investment; and Materiality. Normative dimensions of progress refer to the procedures, practices and policies in place within businesses, communities and regions at national and global levels - for example ILO and UN green economy incentives. Institutional Progress measurement is related to how many institutions exist to track progress within sustainability and Green Economy sectors. These include government ministries dedicated to enacting a green transition. Discursive Dimensions include the measurement of the frequency of the use of the term 'green economy' within academic, political and business documents. Resource Mobilisation is related to the material and budgetary resources given to Green Economy development at national, city and company levels. Finally, the Material category relates to the measurement of carbon outputs, GHG emissions and other quantifiable measurements that dictate progress towards net zero targets. It is possible to use each of these categories as part of a framework to track progress towards a Green Economy. However, the concern remains that the presence of these elements (for all but the 'Material' category), does not always translate to real carbon reductions.

Presented by: Professor Chukwumerije Okereke, Director of Centre for Climate and Development, Alex Ekwueme Federal University Ndufu-Alike, Nigeria

Governing inclusive Green Economy in Africa 

Unlike other non-GDP measures such as the EU Resilience Dashboard, the UN Green Economy progress measurement framework, and the OECD Covid Recovery Dashboard, the IGP (Institute for Global Prosperity) Prosperity Index is a citizen-led and place-based approach to understanding nature's place in the economy. Its very localised nature and inclusion of citizens local to the communities where it is used differentiates it from these more top-down measures. The Prosperity Index allows citizens to be a part of the discourse on what informs their own prosperity and wellbeing in their particular local context. It also encourages cross-sectoral collaboration, bringing together different industry and population groups in order to co-produce sustainability and wellbeing solutions. The Prosperity Index has been piloted in a number of locations: East London, Kenya, Lebanon, Tanzania and Cuba.

Presented by: Professor Dame Henrietta Moore, Director of the Institute for Global Prosperity at University College, London, UK

Prosperity Index

The work of Professor Dasgupta shows that it is possible to incorporate natural capital into economic models by giving it a value, while the work of Nick Stern considers how we might value the future. Stern's work suggests that the future is undervalued and that in order to properly value the future, we must work at a 0% discount rate in economics so that we are not devaluing the worth of future generations. Lord Willets added the need to consider the distributional impacts of climate change policies. For example, the ways in which energy taxes might disproportionately affect poor households, suggesting instead that an income tax should be used to fund the climate transition. Each of these three elements - changing the discount rate, valuing natural capital and considering distributional impact of sustainability tools and policies - are examples of assessments that can be inserted into a reformed but fundamentally classical economic model to gear it towards a just and equitable green transition.

Presented by: Lord David Willets, President of Resolution Foundation, UK

Dasgupta Review

Stern Review

The Responsible Business Tracker, developed by 'Business in the Community', is a strategic performance measurement tool based on the UN Sustainable Development Goals (SDGs). It is a multidimensional tool which includes a variety of metrics such as leadership, supply chain, community engagement and procurement. It is a self-assessment tool that businesses can use to track their own progress towards the UN SDGs, but is also coupled with an assessment process which validates user responses against evidence that the user-business provides. The tool also enables businesses to compare their sustainability progress against peers and competitors in their fields.

Presented by: Professor Ian Thomson, Director of the Lloyds Banking Group Centre for Responsible Business, University of Birmingham, UK.

Responsible Business Tracker

The SDG Impact Standards are a series of standards designed for internal use within businesses and organisations, in order to enable businesses and investors to drive the SDGs into their working systems and decisions. The Impact Standards guidance materials are provided across the areas of: Standards for Enterprise, Standards for Private Equity Funds, Standards for Bond Issuers and Standards for Financing Sustainable Development. Businesses and organisations using the guides are able to perform a self-assessment in order to identify how they measure up against the impact standards, and then to create an action plan to address weaknesses and strengthen their capacity to work towards the UN SDGs. Through working with the impact standards, organisations are also able to gain independent assurance and work towards obtention of the 'SDG Impact seal', a form of accreditation which assures a sustainability standard for businesses.

Presented by: Professor Ian Thomson, Director of the Lloyds Banking Group Centre for Responsible Business, University of Birmingham, UK. 

SDG Impact Standards