7c. Innovative Economic and Financial Pathways for Sustainability Transitions

Track Chairs

Sebastian Thomas, Sustainable Engineering Group, Curtin University, Australia
sebastian.thomas@curtin.edu.au

Olga Cam, Sheffield University Management School, United Kingdom
o.cam@sheffield.ac.uk

Wanxin Li, City University of Hong Kong, China
wanxin.li@cityu.edu.hk

Goals/ objectives and areas of the track

Human activities have significantly altered  our planet1,2. The industrial systems, land use practices, and technologies that have fueled immense prosperity for certain segments of the global population have simultaneously depleted natural resources and disrupted the environmental and social processes  that allow the planet’s rich diversity of life to flourish3. The paradigms underpinning modern civilization’s growth and development are eroding the foundational natural capital that enables planetary existence, pushing the planet beyond its biophysical limits—defined as planetary boundaries—and failing to establish social foundations rooted in equity. All of these are fundamental to the Sustainable Development Goals (SDGs) established by the United Nations which are now laying at the heart of emerging de-growth debates and the search  to oppose or subvert the unsustainable financial growth-driven paradigm6,7 outcomes.

Governments and the private sector are grappling with the challenges involved in transforming industrial systems, energy generation, agriculture, transport, manufacturing, and other economic sectors to low-carbon, sustainable models of operation. These transformations require complex and fundamental changes not only to technological approaches, but to social and governance processes, financial systems, and the cultures and business models of commercial organisations. Examples of strategic tools and frameworks that are being applied to support financial and economic sustainability transitions include the International Sustainability Standards Board (ISSB), Taskforce on Climate-related Financial Disclosure (TCFD), Taskforce on Nature-related Financial Disclosure (TNFD), SBFN Toolkit: Sustainable Finance Taxonomies and the many taxonomies for sustainable finance – such as the European Union’s taxonomy for sustainable activities – that are being developed globally8–11. Examples of multi-stakeholder alliances and and commitments for sustainability transition include the Science-Based Targets initiative (SBTi), the Glasgow Financial Alliance for Net Zero (GFANZ), the Paris-Aligned Investor Initiative, and the UN-convened Net-Zero Insurance Alliance (NZIA).

This track is focused on the design, development, features, implementation, stakeholders, and impacts of financial and economic theories, frameworks, tools, alliances, and protocols that are being applied to achieve sustainability transformations. We are keen to receive submissions exploring different perspectives on this theme.

Theoretical:

  • Innovative conceptual frameworks to inform sustainable economic and business models through the lens of transition theories.
  • Commons, cooperatives, and new forms of commercial organizations.
  • Conceptual contributions that challenge the growth paradigm within the global capitalist system (including ideas of green, smart, post-, de- and qualitative growth) by offering effective alternatives.
  • Environmental justice-driven development including pro-poor growth.

Empirical:

  • Case studies of business initiatives in decarbonization, business model transformation, and nature-based solutions.
  • Analysis of and reflections on policy approaches such as the European Union’s taxonomy on sustainable activities or the Australian Emission Reductions Fund.
  • Studies of how different business models can help achieve corporate climate, energy, and biodiversity sustainability goals.
  • Measurement, reporting, and verification of corporate actions in regulatory contexts.

In addition, we are interested in data-driven speculative submissions (including modelling, thought experiments, and scenarios) that consider how sustainable economic and business models and tools can be implemented to support inclusive and equitable development and growth.

Length and content of the proposed abstract to the track

This track facilitates an interdisciplinary discussion of the conceptual foundations and implementation outcomes of the governance tools and frameworks that are being applied to achieve sustainability transition, particularly in the realm of business and economics. This includes (but is not limited to) human-and-nature realms of sustainable development; the justice and equity implications of transition processes and policies; the application of taxonomies and disclosure protocols; and the relationships between organizations and environmental conditions, institutions, and governance, and economic development and innovation. Robust studies incorporating quantitative methods are encouraged, as are inter- and transdisciplinary research methods and authorship, critical theoretical discussions, and innovative presentations. We welcome contributions for non-academic institutions and author teams including practitioner perspectives.

Each submitted abstract should address topics related to these themes. Abstracts should be 300 to 500 words in length, and include:

  1. Title, author/s, and affiliation/s.
  2. Background, study methods, key findings or results, and implications.
  3. A comment identifying the SDGs relevant to the paper.
  4. A comment indicating how the proposed presentation relates to the conference theme.
  5. A comment describing the presentation approach (online or in person), and explaining the presenter’s approach and use of media.

Potential publication channels

With regard to potential publications, depending on the number and quality of contributions the following publication opportunities have already been envisaged:

  1. After peer review, we may invite contributors to join our publication plan to build an edited book volume and/or a special issue for the new ISDRS journal Sustainability and Beyond, calling for contributions that address aspects of sustainable finance and transition including but not limited to:
    • theoretical constructs, consensus, and debates;
    • actors, interactive dynamics, and collective actions;
    • valuation methods and pricing mechanisms; and
    • MRV of sustainable activities for delivering sustainable development outcomes.
  2. Alternatively, a Special Issue proposal to PLOS Sustainability and Transformations (https://journals.plos.org/sustainabilitytransformation/), Sustainable Development (https://onlinelibrary.wiley.com/journal/10991719, IF 4.082), or other appropriate journal.
  3. A collaborative paper submission for Nature Sustainability (https://www.nature.com/natsustain/).
  4. A collaborative submission for research funding from a suitable initiative, such as the larger funding initiatives e.g. Horizon Europe, the US National Science Foundation’s Accelerating Research Translation, UK Research and Innovation funding, The British Academy or Environment Conservation Fund, Public Policy Research Fund, as well as smaller and more topic and area specific ones e.g. Chartered Institute of Managment Accounting (CIMA), British Academy of Management (BAM)  

References

1.           Masson-Delmotte, V. et al. Climate Change 2021: The Physical Science Basis. Contribution of Working Group I to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change. 3–32 https://doi.org/10.1017/9781009157896.001 (2021).

2.           Pörtner, H.-O. et al. Climate Change 2022: Impacts, Adaptation and Vulnerability. Summary for Policy Makers. https://report.ipcc.ch/ar6wg2/pdf/IPCC_AR6_WGII_SummaryForPolicymakers.pdf (2022).

3.           Steffen, W. et al. Trajectories of the Earth System in the Anthropocene. Proc. Natl. Acad. Sci. 115, 8252–8259 (2018).

4.           Schröder, E. & Storm, S. Economic Growth and Carbon Emissions: The Road to “Hothouse Earth” is Paved with Good Intentions. Int. J. Polit. Econ. 49, 153–173 (2020).

5.           Butler, C. D. Climate Change, Health and Existential Risks to Civilization: A Comprehensive Review (1989–2013). Int. J. Environ. Res. Public. Health 15, 2266 (2018).

6.           Lashitew, A. A. Corporate uptake of the Sustainable Development Goals: Mere greenwashing or an advent of institutional change? J. Int. Bus. Policy 4, 184–200 (2021).

7.           Schramade, W. Integrating ESG into valuation models and investment decisions: the value-driver adjustment approach. J. Sustain. Finance Invest. 6, 95–111 (2016).

8.           Siew, R. Y. J. A review of corporate sustainability reporting tools (SRTs). J. Environ. Manage. 164, 180–195 (2015).

9.           Siew, D. & Hillis, L. Corporate Climate Transition Plans: A guide to investor expectations. 38 https://igcc.org.au/investor-expectations-on-corporate-transition-plans/ (2022).

10.         University of Cambridge Institute for Sustainability Leadership. Integrating climate and nature: The rationale for financial institutions. https://www.cisl.cam.ac.uk/resources/publications/integrating-climate-and-nature-rationale-financial-institutions (2022).

11.         Ameli, N., Drummond, P., Bisaro, A., Grubb, M. & Chenet, H. Climate finance and disclosure for institutional investors: why transparency is not enough. Clim. Change 160, 565–589 (2020).