The upheaval that has occurred in the last several years has led many people to reflect on how we live, what we consider important and how we are driving society forward. The pandemic shutdowns, shift to remote work, supply chain issues, rapid inflation and a hyperfocus on health and health care issues have given many of us pause and a prompt to explore what truly matters at a personal level. Back in 2020, there was an initial push to “build back better[1].” Since then, it feels as though we’ve simply adjusted to a new normal.
But around the world, many communities have been looking at these issues at a macro level, and one of the results has been the emergence of a movement toward establishing a strong focus on a more holistic way of living known as well-being economies.
[1] Build back better – David Suzuki (no date). Available at: https://davidsuzuki.org/wp-content/uploads/2020/06/DSF-Well-Being-economy-06-08-2020.pdf (Accessed: November 16, 2022).
In Canada, the federal government has also been evaluating ways to “measure what matters” in an effort to better understand and address quality of life issues that go beyond GDP (gross domestic product). Typically, GDP measures are used to evaluate a country’s economic performance and prosperity, but these measures look only at metrics that involve productivity and financial outcomes. Last spring the federal government released the beginnings of a quality of life framework[1] for Canada, stating that “82% of Canadians agree that beyond GDP measures are important in their own daily lives, and a majority further agree that it is very important that government consider factors like health, safety and the environment when it makes decisions.”
After decades of innovative thinking on Canada’s environmental frontlines, the David Suzuki Foundation (DSF), a Genus’ institutional client[2] with impact as a core part of its operational strategy, has also been exploring how to shift our thinking on what truly matters. “Our current economy is centred around financial growth – GDP, ROI, etc.,” says Tara Campbell, DSF’s Well-being Economies Specialist, whose role is focused on establishing an alliance in Canada and building collaboration among stakeholders who are interested in the idea of a well-being economy. “The priority of a well-being economy is the well-being of people and the planet. It’s not about prioritizing financial growth.”
[1] Canada, D.of F. (2022) Government of Canada, Canada.ca. / Gouvernement du Canada. Available at: https://www.canada.ca/en/department-finance/services/publications/measuring-what-matters-toward-quality-life-strategy-canada.html (Accessed: November 15, 2022).
[2] For institutional investors (2022) Genus. Available at: https://genuscap.com/services/for-institutional-investors/ (Accessed: November 15, 2022).
How does a well-being economy work?
Though it may sound revolutionary, the term ‘well-being economy[1]’ is not new. Communities around the world have been exploring it for at least a decade[2]. But implementation work has recently accelerated. Amsterdam, for example, introduced a model referred to as doughnut economics[3], which works to ensure all people have access to a good quality of life without taxing the planet’s environmental systems. To do this, it’s rolling out new plans for infrastructure, employment and government contracts that make well-being as important as traditional measures of GDP. And other regions are following suit, including Copenhagen, Brussels, Dunedin in New Zealand, Portland, and our own Nanaimo, BC.
This fall, the Vancouver Economic Commission released its own Beyond GDP framework[4], which consists of 36 indicators including air quality, job satisfaction and food security – reflecting issues that have risen to prominence in recent years. Measuring these indicators will give a better understanding of how people are actually doing in the region.
“There’s been a greater recognition of the fragility of the current systems,” Campbell says. “And there’s been a shift in consciousness. We’re not seeing an economic system transformation just yet, but the potential for that has changed.”
For Campbell, the focus has been on establishing a national well-being economy alliance and cities-based innovation hubs to experiment with well-being economy transitions.
“This year we’re planning to move into an active alliance with a strategy and regular meetings, public engagement with events, and government advocacy,” she says. “Importantly, we hope to centre Indigenous peoples and their struggles in the work of the alliance. There’s a lot to learn from Indigenous world views and economies that have existed sustainably in place for millennia. There’s a lot of wisdom there.”
[1] Resources (2022) Wellbeing Economy Alliance. Available at: https://weall.org/resources#oldwaynewway (Accessed: November 15, 2022).
[2] The economics of well-being (2014) Harvard Business Review. Available at: https://hbr.org/2012/01/the-economics-of-well-being (Accessed: November 15, 2022).
[3] Nugent, C. (2021) Could Amsterdam’s New Economic Theory replace capitalism?, Time. Time. Available at: https://time.com/5930093/amsterdam-doughnut-economics/ (Accessed: November 15, 2022).
[4] Vancouver goes beyond GDP with New Economic Framework: VEC (2022) Vancouver Economic Commission. Available at: https://vancouvereconomic.com/blog/media/vancouver-moves-beyond-gdp-with-new-economic-framework/ (Accessed: November 15, 2022).
How to support a well-being economy
Campbell says one thing she’s often asked is how individuals can help to support and grow the idea of a well-being economy. “We don’t want to put the onus of systemic change on individuals when governments, businesses and institutions need to take responsibility,” she says. “And it isn’t just on individuals to do that. However, individuals do play an important part.”
As consumers, she says, there’s power in supporting local sustainable businesses. And as investors, we can look to the impact investing spectrum[1] for guidance on putting our money where our values lie. “There’s room for innovative thinking here,” she says. “If you’re interested in this, there are different kinds of investment instruments needed that don’t exist yet. A lot of advocacy needs to happen to transform how we invest.”
Some innovative examples include well-being bonds, also known as social impact bonds, which enable governments and private companies to raise funds for projects with specific well-being outcomes, much like green bonds[2] enable funds to be raised for environmental outcomes. “You don’t need to be an economist to care about the economy,” Campbell says. “Learn about the alternatives that exist and open your imagination to other possibilities.”
A good place to start, she adds, is by becoming a member of the Wellbeing Economy Alliance[3] and signing up for the WEAll Can newsletter.
“We are living in an interesting time where things are crumbling and that opens up opportunities for transformation,” Campbell concludes. “I don’t know what’s coming but I’m excited by the potential for change.”
Interested in learning more about how you can effect change through your investment portfolio? Contact a Genus advisor to get started.
[1] Build back better – David Suzuki (no date). Available at: https://davidsuzuki.org/wp-content/uploads/2020/06/DSF-Well-Being-economy-06-08-2020.pdf (Accessed: November 16, 2022).
[2] Canada, D.of F. (2022) Government of Canada, Canada.ca. / Gouvernement du Canada. Available at: https://www.canada.ca/en/department-finance/services/publications/measuring-what-matters-toward-quality-life-strategy-canada.html (Accessed: November 15, 2022).
[3] For institutional investors (2022) Genus. Available at: https://genuscap.com/services/for-institutional-investors/ (Accessed: November 15, 2022).
[4] Resources (2022) Wellbeing Economy Alliance. Available at: https://weall.org/resources#oldwaynewway (Accessed: November 15, 2022).
[5] The economics of well-being (2014) Harvard Business Review. Available at: https://hbr.org/2012/01/the-economics-of-well-being (Accessed: November 15, 2022).
[6] Nugent, C. (2021) Could Amsterdam’s New Economic Theory replace capitalism?, Time. Time. Available at: https://time.com/5930093/amsterdam-doughnut-economics/ (Accessed: November 15, 2022).
[7] Vancouver goes beyond GDP with New Economic Framework: VEC (2022) Vancouver Economic Commission. Available at: https://vancouvereconomic.com/blog/media/vancouver-moves-beyond-gdp-with-new-economic-framework/ (Accessed: November 15, 2022).
[8] Phung, E. (2022) Where am I on the impact investing spectrum?, Genus. Available at: https://genuscap.com/where-am-i-on-the-impact-investing-spectrum/ (Accessed: November 15, 2022).
[9] Ferraz, C. (2021) Introducing the genus global impact bond fund, Genus. Available at: https://genuscap.com/introducing-genus-global-impact-bond-fund/ (Accessed: November 15, 2022).
[10] WEAll (2022) Home, Wellbeing Economy Alliance. WEAll https://weall.org/wp-content/uploads/2018/07/WEAll-logo-smaller.jpg. Available at: https://weall.org/ (Accessed: November 15, 2022).
