Driving action for a new economy: Rethinking value and growth

A sustainable future depends on transformation and on the courage of business, government and society to act swiftly and decisively.

In brief

• The “new economy” rethinks how we create value and growth, aligning prosperity with human and planetary well-being.
• Today’s economic model remains unsustainable by design. Addressing its systemic flaws requires deep, collaborative transformation.
• Businesses hold the power to turn ambition into action and accelerate the shift toward a regenerative and resilient future.

Global progress on environmental, social and economic fronts tells a sobering story. Despite years of growing momentum around corporate sustainability, the scale and pace of change remain insufficient to address the crises we face. We are still trying to retrofit sustainability into systems that are unsustainable by design. The challenge is not just to optimize the current model, but to rethink it altogether.

The report by the New Economy Unit, A new economy: Exploring the root causes of the polycrisis and the principles to unlock a sustainable future, examines what this long-term transformation toward a regenerative economy entails. It explores where we have come from, and the choices we now face to accelerate the pace and scale of action.

A global economic system in polycrisis

The current global economic system has delivered progress and prosperity, yet cracks in its foundations are becoming increasingly visible. At the heart of today’s ecological, social and geoeconomic polycrisis there are six interconnected systemic flaws:

1. Unsustainable growth – valuing the quantity over the quality and sustainability of growth
   
   
2. Overconsumption – consuming unequally, beyond our planetary means
   
   
3. Linear economy – a take-make-waste production and consumption model
   
   
4. Financial capital myopia – overvaluing financial and undervaluing everything else
   
   
5. Short-termism – structural and cognitive focus on the present at the expense of the future
   
   
6. Siloed thinking – approaching complex, interconnected issues in isolation
   
   

Signals of change

The forces shaping our economy – policy, technology, finance, business and citizens – all play a defining role in what happens next. They can either reinforce the inertia that holds the current system in place or help build the confidence and momentum needed for change.

While there are worrying signs that we risk locking ourselves into an unsustainable path, there are also powerful signals that change is already underway. Policymakers are integrating sustainability and circularity into regulation. Renewable and regenerative technologies are advancing rapidly. Finance is mobilizing capital toward innovation and impact. And there is a growing cultural shift toward eco-conscious, experience-based and values-led modes of consumption.

Across industries, the expansion of sharing-economy, ecosystem and other innovative business models is challenging traditional paradigms of success. Taken together, these trends suggest that we are at a pivotal moment for transformation, one where today’s crises could become the catalyst for a new, regenerative economy.
 

Transitioning to a new economy

Turning these early signals into widespread action will require collaboration across all parts of the economy. Businesses, policymakers, investors and citizens each have a role to play in removing barriers and creating the right conditions for change.

If we act deliberately and with urgency to move away from the flaws that keep the current system in crisis, then a new, regenerative economy built on human and planetary well-being is still within reach.

To accelerate this transition, five principles can help shape decisions made today and in the years ahead:

1. Sufficiency – enough for a good life within planetary boundaries
   
   
2. Circularity – aligning production and consumption with nature
   
   
3. Systems thinking – connecting the dots to catalyze systems change
   
   
4. Value redefined – putting human and planetary flourishing at the heart of value creation
   
   
5. Equity and justice – achieving shared and lasting prosperity for all
   
   

The role of business

Business has a critical role to play in this shift. Yet many business models today remain misaligned with new economy principles, not by intent, but because no business can be truly sustainable within an unsustainable system. At the same time, an increasing number of companies recognize that staying competitive in a future defined by new expectations and constraints requires transformation now.

Across sectors, examples of this mindset shift are emerging, with even large, established businesses beginning to change in small but meaningful ways. In the fashion industry, brands are prioritizing quality and longevity over volume. In the electronics industry, companies are designing for reuse and repair. In mobility, manufacturers are moving toward shared and service-based models, while in agriculture, businesses are adopting regenerative practices and building more resilient supply chains. Some large corporations are embedding sustainability into their legal structure, signaling that long-term value extends well beyond financial return.
 

The courage to choose the future

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?

Read our research pieces by the New Economy Unit to explore these themes in greater depth, with data, practical actions, real-world examples and questions for reflection on your organization’s role in the new economy.