The COP-29 meeting has spotlighted the enduring challenge of growth and its toll on natural resources. Speaking at this year’s session, the Vatican Secretary of State remarked:
"A true ecological debt exists, particularly between the global north and south, connected to commercial imbalances, which affects the environment and the disproportionate use of natural resources by certain countries over long periods of time."
This statement underscores the pressing need to reconcile economic development ambitions with ecological realities.
A critical paradox: the relentless pursuit of growth in a world of finite resources
The traditional pursuit of growth faces unprecedented scrutiny in a world of finite resources. Multiple global crises, such as climate change, biodiversity loss, and mass migration, all point to Earth’s boundaries bursting at the seams. How can nations develop and businesses innovate without breaching planetary boundaries? This article delves into the tensions between economic progress and sustainability, evidenced by the rhetoric coming from COP-29 offering CEOs and managers actionable strategies to navigate these competing demands.
COP-29 and the Unfinished Debate on Sustainable Growth
COP 29 is the United Nations Climate Change Conference, which will take place in Baku, Azerbaijan, in November 2024. The UN Climate Change Conferences (or COPs) are the world's only multilateral decision-making forum on climate change (UNFCCC).
This year has been particularly overwrought as leaders work through global climate negotiations and multilateral agreements. Argentina withdrew its delegation. No reason was given but the Argentinian president is viewed as a right-wing populist who has dubbed the climate crisis a "socialist lie". Perhaps it is a signal of competing interests. Argentina has the 2nd largest reserve of shale gas and the 4th largest shale oil reserves worldwide (IEA, 2024). According to S&P Global, Argentina could quintuple its current oil output and raise its natural gas reserves and output in its Vaca Muerta shale play once the government reviews its proposed regulatory scheme to streamline investment rules. Argentina's absence reflects the ongoing tensions between national energy ambitions and global climate commitments, underscoring the complexities of aligning diverse priorities.
There were even contradictions with this year’s COP-29 host. Azerbaijan’s President Ilham Aliyev seemingly underscored the natural tension between pursuing climate risk abatement goals and economic development. “Countries should not be blamed for bringing these resources to market”. Oil and Gas “is a gift of God"
UN Secretary-General Guterres bemoaned the “doubling down on fossil fuels”. He described the weather-related turmoil of 2024 as a masterclass in climate destruction.
"The sound you hear is the ticking clock…..time is not on our side."
Meanwhile, leaders of the world's biggest polluters were not present at COP-29, including the USA, France, and India (BBC,2024). This has created frustration amongst stakeholders.
"People there eat, drink, meet, and take photos together, while images of voiceless speeches from leaders play on and on and on in the background. "To me, this seems exactly like what happens in the real world every day. Life goes on with its old habits, and our speeches, filled with good words about fighting climate change, change nothing. And adding insult to injury some minor and major global leaders have boycotted this annual global event" Albania Prime Minister Edi Rama
The discussions at COP-29 reveal deep divisions in balancing economic ambitions with the urgent need for ecological preservation. Within the last 48 hours, the world agreed to a new climate deal with wealthy countries pledging to provide $300 billion annually by 2035 to poorer countries to assist with managing the climate crisis (CNN,2024). With reported boycotts and discord the likelihood of a deal had looked dim. India’s representative Chandni Raina slammed the $300 billion as “abysmally poor” calling the agreement “nothing more than an optical illusion.”
Others labeled it a betrayal. (The Guardian, 2024). This tension forms the heart of the growth dilemma.
The Growth Dilemma: Can It Ever Be Sustainable?
Economic development and growth are critical components that drive economic growth. It supports commerce, and infrastructural development and creates new job opportunities while facilitating an improved quality of life.
It can also be defined as the expansion of the productive capabilities of a region's economic base i.e. volume of goods and services produced (Hill, 2023). The pace of economic growth is typically driven by the regulatory, political, and macroeconomic agenda of a country.
In the context of business, corporate growth is sought to increase revenue, market share, and profits. Growth is equated to success as it correlates to market dominance and an increase in shareholder value. Yet, can the current development model continue when its success depends on using finite resources? The planet’s finite resources, from water to minerals, challenge the feasibility of limitless expansion. S&P Global Sustainable1 finds that 85% of the world’s largest companies that make up S&P Global 1200 have a significant dependency on nature across their direct operations.
46% of companies have at least one asset located in a Key Biodiversity Area (KBA) that could be exposed to future reputational and regulatory risks. This dependency raises questions about whether current growth models—rooted in consumption and resource exploitation—can persist.
Redefining Growth in the Age of Limits
Balancing the increasing demand for raw materials with the limitations of Earth’s finite resources is a complex challenge. Utilizing natural resources for business in itself is not problematic. It is crucial for economic growth, as evidenced by the role fossil fuels and metals play in the development of emerging countries. The problem lies in the cultural mindset of near-term thinking, which presumes unlimited availability without care for future generations.
“The businesses that see and act on the cultural shift that is pressing for a healthier planet will deliver benefits for all of us”, Paul Marushka, CEO Sphera, November 2024.
There is scientific consensus that we are now in a geological period called the Anthropocene, defined by humanity’s huge impact on the planet. The Stockholm Resilience Centre has revealed that human activity has broken six out of nine planetary boundaries, including climate change, biodiversity loss, and freshwater use, suggesting a high risk of sudden or irreversible environmental changes. Natural resources are diminishing due to overconsumption, and ecosystems are also unable to cope with excessive resource extraction.
Geopolitical and societal pressure is also mounting to tackle climate change and other sustainability issues. Growth can no longer be defined solely by revenue or market share—it must include environmental and social considerations. As global populations rise, there will be a rise in the demand for natural resources to meet the needs of communities and help economies grow. We must therefore redefine our relationship with global ecosystems without penalizing those in pursuit of growth.
"The transition to low-emission energy must not compromise the development of low-income countries. Global warming should not be used as a pretext for unfair competition or restrictive practices” Russian Prime Minister, Mikhail Mishustin
Leaders must adopt bold strategies to decouple growth from resource depletion and align business goals with planetary stewardship. Demoutieze (2022) contends that thoughtful transformations are needed to balance the economy, society, and the environment. Traditionally, economic growth and prosperity have been linked with the availability, production, and distribution of tangible goods (Bellos and Ferguson, 2015).
In fact, Adam Smith’s Wealth of Nations (1776), labeled any activity not resulting in the production of a tangible good as “unproductive of any value.” This focus on exponential material products has resulted in waste and environmental degradation. There is therefore a need to decouple growth from massive consumption. This redefinition of growth isn’t about halting progress but reshaping how we measure success and achieve it. This requires alternatives to development that factor in multiple stakeholder objectives. It also requires the rethinking of the “take-make-dispose” way of doing business and adopting new ways of working that maximize the value and use of resources.
One area of redefinition could come from how we scale operations. By adopting innovative and efficient practices, businesses can minimize waste, reuse materials, and embrace regenerative models that extend resource lifecycles. In so doing growth becomes decoupled from resource usage. There can also be shifts from the production-centric models to digital innovation and services-based models. Here are some key pathways to redefine growth in a resource-constrained world:
Decoupling Growth from Resource Use
Circular economies, design products for longevity and recyclability. One way of accelerating the circular economy is to explore eco-efficiency. As defined by the World Business Council for Sustainable Development (WBCSD), “eco-efficiency is achieved by the delivery of competitively priced goods and services that satisfy human needs and bring quality of life, while progressively reducing ecological impacts and resource intensity throughout the life-cycle to a level at least in line with the Earth’s estimated carrying capacity.” An example of this is the transformation of plastic waste into a raw material for new products. Dow and Ecoplast Ltd accepted the challenge to create glove packaging designed for circularity. Their innovative solution was REVOLOOP™ Recycled Plastic Resins derived from locally sourced flexible packaging waste films in India. The selected product grade incorporated 60% post-consumer recycled material and addressed challenges related to odor and inconsistent color (Dow,2024).
Leveraging Innovation and Efficiency
Investing in technological innovation can help businesses do more with less. For instance, adopting renewable energy technologies lowers carbon footprints and reduces long-term costs. Walmart utilizes alternative energy sources to make its operations greener and more energy efficient. They focus on using the least energy possible when constructing their new chain stores. The company also has its on-site generation aiming to become 100 percent supplied by renewable energy.
Shifting from Product-Centric to Service-Based Models
Many industries are transitioning from selling products to offering services. For example, car-sharing platforms like Zipcar provide mobility without requiring individuals to own vehicles. This approach reduces material consumption and encourages resource-sharing models that cater to modern consumer needs while preserving planetary boundaries. The decoupling of customer value from product ownership is at the heart of the arguments in support of the environmental potential of servicing (Heiskanen and Jalas, 2000) requiring less energy or material to generate the same (or even more) customer value. For instance, under shared savings contracts, a supplier is rewarded based on the savings that the buyer enjoys due to a reduction in consumption and not on the material sold to the buyer (Corbett and DeCroix, 2001; Corbett et al., 2005).
Global Collaboration for Equitable Growth
The transition to sustainable growth must address inequalities between developed and developing nations. This will be enhanced through climate diplomacy where parties agree on what it takes to protect global limits. Inclusive financing mechanisms like the Green Climate Fund and sustainable financing allow wealthier countries to support low-income nations in adopting sustainable energy solutions, ensuring that the path to growth doesn’t exacerbate global divides.
Sustainability through the Shared Economy
The sharing economy allows for peer-to-peer sharing of access to goods and services focuses on the sharing of underutilized. (Coffman and Zhifu, 2019). It offers significant environmental benefits by reducing the total resources consumed and minimizing pollutants, emissions, and carbon footprints. In the transportation sector, vehicle-sharing initiatives lower the number of kilometers traveled decreasing environmental impact. These practices encourage shifts in consumer behavior, moving preferences from vehicle ownership to on-demand transportation solutions. In Shanghai, bicycle-sharing schemes in 2016 led to a reduction of 25,000 tonnes of carbon dioxide (CO2) and 64 tonnes of nitrogen oxide (NOx) emissions.
With all these options available, leaders must articulate a new narrative—one where growth aligns with planetary stewardship. CEOs and managers need the boldness to challenge traditional metrics, refine business models, and champion sustainable alternatives. By leading with a sustainable purpose, corporations become symbols of ecological restoration and resilience. This reimagining of growth doesn’t mean abandoning ambition; it means pursuing it thoughtfully and responsibly. By adopting innovative, equitable, and sustainable strategies, businesses and governments can create a future where growth enhances, rather than depletes, the planet’s resources.
Bahamas Prime Minister Philip Davis reminds us that “we persist in responding to these events as though they are merely unfortunate, isolated, and national incidents”.
What if redefining growth wasn’t a sacrifice but an opportunity to innovate, compete, and lead?"
Imagine what your business would look like if growth were defined by value rather than volume. Consider these practical steps.
Adaptive Strategies: How Leaders Can Thrive Within Limits
Understand Your Impact: Assess how your operations, supply chain, and products align with planetary boundaries.
Pivot to Circular Models through ESG Integration: Embed reuse, recycling, and reduction into your processes.
Align with Stakeholders: Engage customers, investors, and communities in co-developing sustainable solutions.
Reframe Metrics of Success: Track growth in terms of societal and environmental impact alongside profit.
Embrace Transparency: Share your progress and challenges to build trust and inspire collaboration.
As global crises mount, the question is how quickly we can redefine what growth means. By embracing circular models, prioritizing green innovation, ESG integration, and building cross-border partnerships, leaders can transform today's challenges into opportunities for thriving within limits. The time to act isn’t tomorrow—it’s now.
"We have a clear choice between a safer, cleaner, fairer future and a dirtier, more dangerous, and more expensive one. We know what to do. Let's get to work. Let's get it done." John Podesta, US Climate Envoy
What steps are you taking to thrive within limits? Share your insights below!”
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