#20 Why growth is the ultimate "impact" metric?
ESG should stand for Environmentally & Socially Conscious Growth
Many believe impact and growth can’t go hand in hand. We see the complete opposite: growth is the ultimate “impact” metric for your company.
Here’s why.
1. Growth reveals increasing individual happiness
For growth to happen, more consumers need to choose your products, investing their hard-earned money in what you offer.
Consider what that signifies—each additional purchase reflects a conscious decision to prioritize your product over countless alternatives.
This choice isn’t just a transaction; it’s a clear signal that your product brings greater personal satisfaction (a.k.a. happiness)—otherwise, consumers would simply stick to their previous purchasing habits.
2. Growth underpins social progress
"OK, but individual consumers don’t always make informed, impactful choices. They will prioritize themselves at the expense of society”
Let’s assume that you are right.
Even so, it’s essential to remember: higher economic growth (GDP per capita) correlates to improved living standards across any metric you can imagine—longer life expectancy, lower child mortality rates, better education, less working time or even more life satisfaction.
PS: We talked about inequality and economic growth in our podcast episode with Marc Canal (Spanish)
3. Growth is required to solve climate change
"OK I get it: growth increases individual happiness and societal living standards. But isn’t growth killing the planet? Aren’t we exhausting our limited resources and worsening climate change? Shouldn’t we 'de-grow' to survive?”
The answer is simple—that’s neither possible, true, nor wise.
A. Not possible
Stopping economic growth would freeze the world’s GDP at current levels. No more growth, nada; leaving us with two stark choices:
Perpetuate current poverty levels for ~25% of the global population; or
Redistribute resources from developed to developing nations (reducing developed countries’ income to the equivalent of Romania’s GDP per capita)
It’s just not going to happen.
B. Not true
It is not only possible but a reality for many countries (and companies) to grow while using fewer resources:
How? By simply embracing more efficient technologies (e.g., solar power, more efficient cars) or developing high-growth non-material sectors (e.g., gaming, online education, consulting)
C. Not wise
We need economic growth to unlock the funds required to transition to a “sustainable world”. McKinsey estimates it at $275 trillion during the next 30 years (e.g., to invest in more solar power installation, batteries, scale-up carbon removals)
ESG
In summary, your company’s growth reveals happiness, fuels social progress, and funds the fight against climate change.
This is why growth is your most important impact metric.
A metric that must work alongside your other core impact metrics to achieve true and relevant ESG: Environmentally and Socially-conscious growth.
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