The term ‘green economy’ has become increasingly common but is, as with many such terms, without a common definition. Some assume that ‘green economy’ refers only to the environmental good and services sectors, i.e. sectors that produce products or provide services that have obvious environmental benefits, such as renewable energy or water filtration technology. Given that these sectors are only a subset of the entire economy, this narrow definition not only neglects most economic activity, but ignores the scale of the environmental challenges we face.

How far does consumer freedom of choice extend? Should consumers be able to consume whatever they want, and in whatever quantity they want? Does the consumer always know best?

The economy of the future will be more resource-efficient and less carbon-intensive, and these trends will force change in the very business models that underlie corporate activity.Business models refer to, simply, the way that a company organizes itself to make money. Business models are constantly evolving to keep up with trends. But consider how the trends of resource constraints and information technology are converging to alter the way companies create and deliver value.

When we think of public policy in relation to climate change, we think of carbon pricing; meaning, government policies that will promote the reduction in carbon production and consumption. While carbon pricing is essential to spur the transformation towards a low-carbon economy, there is another type of climate change policy that is also important for policy-makers to begin to consider: climate change adaptation.

What information do company managers rely on when making decisions? Financial information is of paramount importance, whereas environmental and social factors are often overlooked. Puma has recently made impressive strides in evolving the degree of sophistication of environmental and social data it collects and analyses, and how it will be used to make better decisions.

In the face of any event, risk or threat, humans undergo a “sensemaking” process – where we process information to assign meaning, which informs the action we will take to address the threat. When examining how individuals and companies are responding to climate change and other environmental stresses, understanding how people process and make sense of the information they receive helps explain why some people are alarmed and compelled to take action and others are not.

How will competitive dynamics and consumer spending patterns change in a resource-constrained world?

Do companies have the decision-making tools and data to confidently make forward-looking investments for low probability, high impact, events?

Welcome to Sustainable Prosperity's new blog - this post serves as the introduction to an ongoing series of posts by SP staff on adaptation, in relation to corporate and political decision-making and how best to create resilient systems and institutions that will thrive in an uncertain world.