For businesses, organizations and companies, sustainable economic development involves the setting of goals, which extend beyond their own financial best interests. In other words, it involves developing economically, while maintaining an interest in the wellbeing of others as well. On its website, the European Commission states that sustainable development “offers a vision of progress that integrates immediate and longer-term objectives, local and global action, and regards social, economic and environmental issues”.
Sustainable development is a subject worth caring about for several reasons. On the same webpage, the European Commission states that sustainability is a global concern, and can be used to combat global poverty as well as climate change. In a 2001 report entitled Strategies for Sustainable Development, the Organization for Economic Co-operation and Development identifies sustainable development as a way to ensure economic development that is socially considerate, and invested in the lives of future generations.
This makes sustainable development a good subject to familiarize oneself with. If business owners, employees or managers become better acquainted with sustainable development, they could learn how to develop an organization economically, with sustainability in mind. And fortunately, the above-mentioned institutions provide a good overview of this subject.
The OECD
A report published by the OECD in 2001 contains much relevant information. It was created to provide guidance on how to carry out sustainable strategies, and “provide a basis for broader international discussion and agreement of this issue,”¬ – as its introduction explains. It is based on broad international research, containing different approaches to sustainability from a wide range of countries. A main approach, in which it helps explain the subject of sustainable development, is by outlining what underlies it.
The report explains which principles make up sustainability strategies. It lists several crucial aspects of a good sustainable economic strategy, and elaborates on them. One of these underlying principles is, for instance, the need for effective participation. The report explains that a good strategy is open to review, and based on communication with other stakeholders or participants. It also teaches, that the sustainability strategy must be clearly and effectively worked into the budget.
The EU
In 2015, the EU published a review of its own Sustainability Strategy, monitoring its progress and making suggestions for improvement. Unlike the previous report, this one focuses specifically on Member States of the EU. It relates mostly to policy issues. However, the report explains which indicators specifically the EU monitors, when reviewing sustainability.
This is a way to indicate what objectives and actions make up its sustainability strategy. That makes it useful to study, when trying to better understand what sustainability entails. One element that is monitored, is the amount of greenhouse gas emissions, another is the energy dependence of certain sectors, and the amount of electricity generated from renewables. When it comes to social inclusion, the EU monitors the gender pay gap in organizations, or education expenditure levels. The report is divided in different chapters, each based on an aspect of its sustainable development strategy.
In short, economic development strategies can benefit the world if they adopt a sustainability strategy as an element. Much has been written on the subject of sustainable development strategies, for instance in the above mentioned reports. Because they outline clearly what principles and factors a sustainability strategy needs to focus on, they can be very beneficial for individuals or organizations that are trying to understand what economic development strategies for sustainable development should consist of.
By: Barbara Haenen