Coming together: Sustainable growth means rethinking value

Ten years after 195 parties signed the Paris Agreement, the gap between what is necessary and what is politically possible feels wider than ever.

The COP30 climate conference in Belém captured this dilemma: Brazil showed resolve, but negotiations were constrained by the concerns of some countries whose economies remain closely tied to fossil fuels.

Despite these divides, countries agreed to increase funding for climate adaptation and launched a new forest protection initiative, but it's unclear if this will lead to real change. And at the G20 meetings that followed, despite agreement on economic, social and environmental goals and the need for reforms, actions remained vague.

Long-term challenges require collective action, yet global forums struggle to get collective commitment. Vague pledges result in little action.

Sustainability is more than protecting the environment, so this fragmentation has consequences that extend far beyond diplomacy: businesses rely on geopolitical stability, shared rules and predictability.

When international collaboration weakens, value chains become vulnerable, investment horizons shorten and societies question the benefits of globalization. Rising inequality is stalling social mobility and creating a sense of exclusion. When people feel excluded from opportunity, trust erodes and populism, polarization and post-truth politics can take root.

These complex challenges are exacerbated by geoeconomic models that prioritize short-term gains over long-term value creation. The challenge is to reconcile economic, social, political and ecological interests. But how?

Solutions must be grounded in viable business models. This requires broadening our understanding of value to include natural, social and human capital. The economy depends on all three, yet we often treat them as free resources.

A unified and simple framework for measuring these different forms of capital, usable by policymakers and CEOs, would enable better long-term decisions.

But frameworks only work if governments enforce them. Markets require information transparency and a level-playing field. Initiatives like the EU’s new corporate sustainability reporting architecture can help implement stricter supply-chain due-diligence rules, but these gains are fragile.

Innovation must also be the driving force behind sustainability. In construction, low-carbon cement and concrete are reducing CO₂ intensity at scale, demonstrating that decarbonization can be engineered into the supply chain. The consumer goods sector is piloting circular business models that decouple prosperity from waste.

Governments and regulators should create smart policy levers — tax benefits, preferential financing rates, procurement advantages — that incentivize companies to deliver measurable sustainability performance across natural, social and human capital.

Many firms have great ideas for clean technology, environmental protection and fair labour practices, but they compete in systems that still favour short-term returns. Transparent reporting standards and regulation that align incentives with long-term value creation can shift this dynamic.

No single actor can address the climate challenge alone. The most critical assets — water systems, biodiversity corridors, resilient infrastructure — can neither be delivered solely by governments, nor simply marketed by companies. Public-private partnerships, blended finance and regional coalitions can accelerate innovations that fuel sustainable growth.

Countries are already showing what is possible. Denmark has reduced its dependence on fossil fuels while strengthening energy security. China has demonstrated how quickly a country can scale electric mobility when policy and industry pull in the same direction and incentives align with industrial capacity.

In the US, states like Texas now lead in solar generation, driven by compelling business opportunities and tax incentives. We see similar progress among business coalitions. The CEO Alliance on Nature is working to show how investing in trees and the ocean can create a new asset class and bring prosperity for both people and the planet.

At the World Economic Forum's Annual Meeting in Davos, we'll have another chance to find common ground, based on common sense, not ideology.

Through “A Spirit of Dialogue”, the theme of the event, we can re-strengthen global collaboration and support sustainable growth, based on an understanding that creating long-term value must incorporate human, social and natural capital.

Hoffman is interim co-chair of the World Economic Forum