“Am I anti-growth? No. But I think that a shift from ‘never having enough’ to ‘everyone having enough’ would future-proof our societies.”
- Gaya Herrington, VP Sustainability Research, Schneider Electric
From ever-more to better
Economic systems change for thriving beyond growth.
- By Gaya Herrington
- 23 Jul 20253 min
“Am I anti-growth? No. But I think that a shift from ‘never having enough’ to ‘everyone having enough’ would future-proof our societies.”
The pioneering 'Limits to Growth' theory from the Club of Rome returns revitalized by Gaya Herrington, Club Member and Vice President of Sustainability Research at Schneider Electric.
Reflect on three questions to delve into the transformation of global economic systems into a wellbeing-focused model that values human and environmental health over unchecked expansion.
Well, who wouldn’t live a world where human development is the endgame for society?
We see adverse impacts of resource overexploitation, geopolitical instability, and social inequality, which I believe are stemming from the traditional growth-centric economic model. Six out of nine planetary boundaries have been crossed, threatening ecological stability.
On the other hand, humanity is at peak wellbeing globally nowadays, presenting a pivotal opportunity to redefine success, shift resources, and establish regenerative practices before crossing more irreversible ecological tipping points.
Transitioning to a wellbeing-focused economy requires rethinking the traditional measures of success, such as GDP growth, and adopting new frameworks that prioritize human and ecological health. A shift that entails redefining what we mean by progress, by introducing metrics like the Genuine Progress Indicator and Living Planet Index to measure social and environmental impacts alongside economic output.
I’m really not anti-growth, but I think we should be more selective about growth. That means choosing sectors that align with ecological and human wellbeing, such as renewable energy, sustainable agriculture, and community-based programs. Impact investing, as practiced by Schneider Electric among other companies, is a practical approach to scaling solutions that benefit both people and the planet.
As the world prepares for COP30 in Belém, Brazil, this November, the message from concerned citizens, scientists, and advocates is clear: we must accelerate the sustainable energy transition, strengthen resilience, and mobilize investment at an unprecedented scale. And the capital must be smarter, targeting frontline communities and real, scalable solutions. This is where impact investing plays a pivotal role.
What this comes down to is humans being a force for good, in service of life, by prioritizing a fair distribution of the Earth's resources, and cleaning up our own mess by addressing critical challenges like climate change, biodiversity loss, and water scarcity.
And by finding the joy in this, through a renewed sense of community, connection with nature, and of purpose we will experience once again in our daily work. Because social science is quite clear that after our basic needs are met, individuals increasingly seek connection, purpose, and community – social and spiritual needs that are poorly addressed by GDP-maximizing economic systems.
Together, global institutions and countries provide overarching frameworks and policies that promote wellbeing economies, while local actions build the grassroots momentum needed to sustain this transition.
Institutions
Institutions like the OECD and World Bank have already started to explore alternatives to GDP through initiatives like the Better Life Index, encouraging a broader view of societal progress.
National leadership
National leadership is driven by some countries, from Bhutan to Costa Rica and Ecuador, who are implementing policies that prioritize happiness, ecological harmony, and sustainable development. A group of Western countries comprising Scotland, New Zealand, Iceland, Wales, Finland and Canada have formed the Wellbeing Economy Governments, a group that shares best practices on how to govern the transition towards a wellbeing economy, with wellbeing budgets and policy framework.
Local communities
But local communities are essential for driving change from the ground up and reach a critical mass. Systems change accelerates once a critical minority (about 25%) supports new paradigms. It starts with individuals connecting with others, at their work and in their local communities.
I am convinced that local initiatives can play a significant role in reaching this tipping point, like the Eight-Hour Day Movement of Australia-based stonemasons, who successfully campaigned for an 8-hour workday without loss of pay in 1856, clearing the path for other labor movements in the industrialized world. Or closer to us in time, the Green Belt Movement for reforestation and women’s empowerment in Kenya, led by Wangari Maathai who was won Nobel Peace Prize in 2004.
For me, the call is clear: we should move away from a degenerative economy to a regenerative economy, from exploitation to regeneration—restoring natural ecosystems, preserving biodiversity, and shifting resources toward healthcare, education, and sustainable energy systems.
As part of a wellbeing economy, businesses and investors would have the same selectiveness towards growth as society: does this contribute to wellbeing or not? Certain businesses would no longer exist, and some would be much bigger than they are today. To foster such a wellbeing economy, businesses and investors have a critical role of adopting practices that prioritize communities' resilience, sustainable development and shared prosperity today.
One obvious lever is directing capital toward initiatives that promote human and ecological wellbeing, such as renewable energy, circular economy solutions, and social enterprises. This approach ensures investments create value for both people and the planet.
In their own operations, companies can adopt a regenerative business model, actively replenishing natural resources, and hence social and economic capitals. For example, Orsted is a company that made the conscious decision to shift its fossil fueled energy services to a fully renewable energy. Many companies can make such as shift by investing profits from extractive industries into regenerative infrastructure to be more future-ready.
And of course, collaboration is key. Partnering with local organizations and governments to support initiatives like community-based rural electrification, regenerative agriculture, or other sustainability projects ensures that economic activities align with collective wellbeing. A good example is this Climate Smart Village in India, supported by NGO Pradan and Schneider Electric, redefining rural livelihoods by integrating renewable energy solutions into the fabric of daily life.
The key to success in such projects is to support the overall economic development of the community, otherwise the positive impacts from the new technologies do not last. This necessitates a more holistic approach in the beginning, but also delivers a solid market for businesses in the longer term.
Aligning investments and operations with the principles of a wellbeing economy allows businesses to contribute to regenerative practices and preserving natural systems while maintaining their profitability long-term – all vital aspects for future prosperity.
Watch Gaya Herrington’s TED talk “Will the end of economic growth come by design — or disaster?” at Bloomberg Green Festival, Seattle.
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