Towards A New Economic Paradigm 2.0: Innovating to integrate decision-making across nature, people, society and the economy

The world economy is undergoing a rapid transformation. Fluctuating global value chains grapple with climate change, biodiversity loss, and persistent social inequalities. We have reached a tipping point where, after centuries of continuous growth, we are learning that we cannot borrow indefinitely the natural resources of other geographies and future generations (or, for that matter, of current generations).   But there's good news.  Capturing our natural, social and human capital together with the (financial) capitals produced is a growing trend among business leaders, investors and policymakers. These capitals honor what really matters to us: nature and people. When these capitals are valued and accounted for at the core of every government and company, and are not set aside as externalities, they completely change the way decisions are made. This is how we protect the people, places, and institutions we hold dear from harm.

This document is based on the vision of a holistic understanding of value through the exchange of innovations that bring together systems thinking and the assessment of impacts and dependencies as main tools. It explains what needs to be done to get economic operators to implement this innovation and what you can do to contribute to it. In our complex world, systems thinking provides the framework for understanding complexity, rather than ignoring it, while valuing what matters helps assign relative importance and allows us to make informed decisions. Combining systems thinking and valuation is an essential innovation to move towards measures of success that balance nature, people, society and the economy.

As is often the case, turbulent times provide the foundation for innovation. While steps have been taken to address individual issues such as climate, very little work has been done on a holistic scale. Over the past twelve months, the global Coalition for Capitals community has driven three important innovations at the systemic level to make integrated decision-making practical and accessible: the Governance Framework for Valuation, the Requirements for Integrated Decision-Making and the Capital Protocol.

Change is uncomfortable and the context in which we move is complex. However, the possibilities of trying to understand this complexity are enormously exciting. Together we have the power to evolve into a new paradigm that values what really matters to us, acts within the limits of our planet, and meets the needs of all.
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