to encompass the Impact Economy, adopting a more comprehensive definition: “A more inclusive, equitable, and environmentally responsible economic system. An impact economy is where all investment, business, consumption, and government decisions are taken with impact at its core. The transition to impact economies is crucial to address urgent global challenges .... the scale of the world’s problems has changed .... and new levels of public-private cooperation and commitment by all to positive impact will be required to achieve a future where no one lives in poverty and the planet thrives.” 44 While discussions around new forms of capitalism that prioritize both people and the planet have been ongoing for some time, this concept remains relatively new for GSG Impact JAPAN and its members. Global examples include Eric Beinhocker’s work at the Institute for New Economic Thinking at the University of Oxford Martin School, where he collaborates with the OECD to reimagine economic models that promote community wealth building and tackle climate change. 45 Influential ecological economists such as Herman Daly, 46 Robert Costanza, 47 and Kate Raworth—through her Doughnut Economics framework— 48 have contributed to these conversations. Additionally, Johan Rockström’s nine planetary boundaries 49 and Paul Hawken’s concepts of regeneration and natural capital 50 have offered new forms of capitalism for several decades. Some GSG Impact Japan members, like Megumi Muto, Vice President of the Japan International Cooperation Agency (JICA), have engaged in work related to ecosystem-based economic principles and planetary boundaries. 51 However, for many in the GSG network, including GSG Impact JAPAN and its members, these ideas are still unexplored. As SIIF and GSG Impact JAPAN further refine their scope and strategy of Impact Economy, these global economic models may offer interesting and relevant perspectives. Sir Ronald Cohen, the founder of GSG, asserts that this broader definition will help ESG become more transparent about both their positive and negative impacts. Cohen calls out the negative impacts of large companies: “Coca-Cola did $3bn-worth of environmental damage in 2019, and the negative health impact of Danone’s products was nearly $8bn, reveals a new accounting approach. It’s time for self-serving, inaccurate ESG reporting to make way for proper evaluation of companies’ social and environmental impacts.” 52 Cohen’s call to action emphasizes the need for greater transparency and accountability within the Impact Economy. Globally, actions are being taken to address these concerns. The International Sustainability Standards Board (ISSB) and the US Securities and Exchange Commission (SEC) are establishing standardized metrics for measuring various impacts, such as
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Ten Years in the Making
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