We sit at a critical inflection point, with two future economic systems in view: one deeply entrenched, the other slowly emerging, and both likely to continue vying for dominance. We recognize that most (if not all) businesses today would find their business models not only misaligned but, in many cases, even in conflict with new economy principles. After all, it is a given that a business cannot be truly sustainable in an unsustainable system.
Yet, a growing number of businesses are recognizing their role – as the most economically powerful and environmentally impactful bloc on the planet, and a critical link between policy and real economy action – in accelerating momentum toward, and building confidence in, a regenerative future. Recognition is also growing that navigating inevitable disruption and maintaining relevance and competitiveness in a future radically different from the present requires deeper transformation, without which businesses risk being left behind.
Evidence of this change in mindset abounds, with even large, established businesses beginning to change in small but meaningful ways. The fashion industry, for example, is increasingly recognizing the importance of optimizing resource use and minimizing waste, with many businesses encouraging people to buy fewer, high-quality, enduring pieces. In the electronics industry, initiatives for recycling electronic waste and designing products for easy disassembly are gaining traction. In mobility, manufacturers are embracing sharing and service models and collaborating with road networks to create whole-of-system solutions. In agriculture, businesses are implementing regenerative agriculture practices; reducing food waste, and partnering with farmers to create more equitable, inclusive and resilient supply chains. And some large businesses are adopting the legal status of B Corps, or similar, to enshrine their commitment to sustainability and the pursuit of value beyond the financial.
While achieving the shifts needed will be a long-term project, the policies and strategies being set in the short term will define which future will prevail. The questions we must therefore ask ourselves are: Which future will we gift to the next generation? And what is our role in bringing it about?
To delve into them in depth, exploring data points, practical actions, real-world examples and questions for reflection regarding your and your organization’s role in the new economy, you can read the full review: A new economy: Exploring the root causes of the polycrisis and the principles to unlock a sustainable future (pdf).
About the New Economy Unit
The New Economy Unit (NEU) is a research and insights team within the EY Global Climate Change and Sustainability Services (CCaSS) practice. The NEU focuses on the long-term, systemic shifts toward a new, regenerative economy.
We recognize that the scale of the challenge is beyond the remit of a single company and requires collective effort to address. We want to engage, share ideas and co-create with others doing research in this space, and with anyone who’s interested in bringing about a more equitable and liveable future.