How modern technologies shape the economy of tomorrow?
Participants in the 11th edition of the Sustainable Economy Summit had a unique opportunity to hear a speech by Marga Hoek, founder and CEO of the Business for Good think tank. The keynote speech opening the entire conference was entitled “Leading forward. Unleashing new opportunities for sustainable business and economic growth, in todays’ complex environment” and dealt with the new opportunities that sustainable development practices combined with innovative solutions are opening up for business. Marga Hoek gave many examples from around the world of how entrepreneurs can use technological advances to not only improve their company’s bottom line, but at the same time have a positive impact on the environment.
The opening statement of the presentation was that it is we, the mankind, who need Earth – and the planet will go on without us. This rather brutal truth was most likely intended to make the audience aware of the place we occupy in the global ecosystem. Despite the enormous impact that human activity can, and does, have on the environment, we are not outside of it, nor are we impervious to the changes occurring in. On the one hand, this inspires a sense of responsibility and agency, while on the other, it dictates that we act thoughtfully, taking into account the potential effects over decades and centuries.
The outcome of such reflection would be, in Marga Hoek’s view, a change in thinking about human activity, particularly the economy. Until now, it was based on the production of goods and services, with maximization of productivity having the highest priority. However, this thinking often overlooked costs that are not visible at first glance. Examples of such costs include environmental degradation through resource depletion or irresponsible waste management, but also the erosion of social structures and institutions – less important for the planet, but just as crucial for humanity.
Building a new sustainable economy requires cataloguing all globally available resources and managing them in such a way that they have time to renew themselves. To better visualize this problem, the example of Earth Overshoot Day is given. It falls on the day of the year when mankind will have used for the production of goods and services all the key resources, such as soil, fossil fuels, forests, raw materials, water, that the Earth is able to renew in a year. This year it falls on July 26. Ms. Hoek gave a simple solution: in order to avoid an environmental collapse, the Earth Overshoot Day should be “moved” forward by five days each year, until 2050. At the moment the trend is the opposite – this infamous “holiday” falls five days earlier each year.
Sustainability, however, is not just about caring for the environment. Using locally available materials, renewable energy sources or recycling waste also help to make a company independent of the global supply chain. In these times of rapid geopolitical change, such independence is a highly desirable asset for any company, regardless of size.
It is in business that the CEO of Business for Good sees the solution to today’s pressing problems. Of the world’s 100 largest economies, as many as 69 are private corporations. These companies already shape our lives to a tremendous extent, and the resources at their disposal mean that no effective changes in the global economy can be made without the participation of these actors.
The first step in the economic transformation is to reduce costs through more efficient use of resources. Food, energy, fuel, water – all these are wasted to a greater or lesser extent. By investing in more efficient equipment, a more cost-effective organization or even shorter supply chains, one can not only increase the profitability of a company’s operations, but also improve its overall environmental impact. Currently, it is estimated that even companies that are already adopting such practices are taking advantage of only 27% of the opportunities offered by sustainable business cost reductions.
However, reducing costs is just the beginning of reducing the negative impact on the planet. The next step is to unlock the opportunities presented by value creation based on investments in innovative, sustainable solutions. A carpet manufacturing company was cited as an example. It introduced a closed-loop economy model that used carbon captured from the atmosphere as a raw material for carpets – thus achieving a positive environmental impact.
Setting ambitious but also specific and simple goals is also an important element in sustainability efforts. With such targets, it is easier to focus all forces on them and, as a result, achieve them faster.
Another benefit for companies investing in sustainability comes from branding. Taking real action toward common climate goals improves a company’s image, which translates into better relationships with investors, customers and business partners.
As the speaker noted, opportunities to make a positive impact are often hiding in plain sight. A holistic approach to design, for example, makes it possible to develop unused spaces on building facades, roads and other elements of infrastructure. Photovoltaic panels laid between railroad tracks or on the surface of water are just one of numerous examples of creative approaches to the efficient use of available resources.
New technologies offer many solutions, but, as Marga Hoek pointed out, they also create new problems. The amount of electronic waste produced worldwide is growing every year. Fortunately, at the same time, the market for processing and recovering the valuable raw materials contained in waste electronics is also growing. Although this is an example of a transitional economy, it is now estimated to be worth billions of dollars, and startups emerging in this area are easily attracting investors.
Modern technologies such as artificial intelligence models, drones and 3D printing are giving us an ever-evolving set of tools, allowing us to realize even the most ambitious projects that seemed impossible just a few years ago. The example of 3D printing given in the presentation allows, among other things, the restoration of coral reefs, 95% of which are now threatened with extinction, with their natural restoration being a long and delicate process. Another application of the same technology in the service of sustainability is the printing of machine components on site, which shortens supply chains and reduces consumption of time and energy, among other things.
In Ms. Hoek’s view, the ability to create and use such modern technologies is a huge competitive advantage for Europe. At the same time, the Old Continent’s economies still face excessive regulation and bureaucratization, which hinders the process of scaling up and commercializing many such solutions.
Although the capacity, technology and capital needed to make the necessary changes in the way the economy is managed are already available, change is still not happening, or is happening too slowly. Summing up her speech, Marga Hoek said that the driving force behind the coming revolution will be future generations, who are already demonstrating a much higher level of awareness when it comes to environmental and sustainability efforts. As their presence in the market grows, the motivation for companies to take action to improve the environment will increase until it becomes unprofitable or outright impossible not to do so. Ultimately, financial motivation may prove most effective – Business for Good researchers have estimated that the total value of business opportunities offered by investments in sustainable solutions to be approximately $12 trillion.
You can watch the full presentation recording here: LINK
Last Updated on June 17, 2025 by Anastazja Lach