How do we create sustainable communities?

Welcome to our first article in our series of sustainability education materials. First, we're going to talk about why and how we should build sustainable communities.

Why should we build sustainable communities?

Unless you've spent some time studying about sustainability and environmental outcomes, you may first wonder why creating these types of communities are necessary?

1. Promotes economic growth and job creation

• Create new economic opportunities and jobs through the development of sustainable industries and education investment

• The renewable energy sector employed 11 million people in 2018, with the potential to create millions more jobs

2. Reduce pollution that negatively impacts public health

• For example, promoting cycling and walking can reduce air pollution and increase physical activity

• Outdoor air pollution is responsible for 4.2 million premature deaths each year as well as declines in health quality

3. Protects natural resources

• Ensure the responsible use and conservation of natural resources such as water, land, and biodiversity

• 80% of the world's freshwater biodiversity is at risk due to human activities

4. Fosters social inclusion

• Promote social inclusion and equity by addressing issues such as poverty, access to education and healthcare, and affordable housing

• 9.2% of the global population lived in extreme poverty in 2019 and wealth inequality is continuing to grow

5. Enhances resilience to climate change and natural disasters

• Help communities to adapt and mitigate the impacts of climate change and natural disasters by reducing vulnerability to hazards

• From 2010-2019, direct economic losses from climate-related disasters amounted to $2.9 trillion globally

How do we build sustainable communities?

Now that we have a long list of reasons as to why we should create these communities, we now have to deal with the practical problem of how do we create them?

Creating sustainable communities requires a comprehensive approach that takes into account various aspects of well-being and environmental stewardship. By adopting sustainable practices, communities can achieve a balance between economic development, social equity, and environmental protection. To effectively measure progress and guide decision-making, it is important to have a robust framework in place. ​ One commonly used approach is the United Nations' Sustainable Development Goals (SDGs), which provide a set of indicators to track progress towards sustainable development. While the SDGs cover a wide range of issues, their simplicity sometimes makes it challenging to capture the full complexity of community well-being.

​ An alternative measure that offers a more comprehensive perspective is Inclusive Wealth (IW). IW goes beyond traditional economic indicators like GDP and takes into account the value of all the resources available to a community. By tracking the value of natural resources, human capital, and physical infrastructure over time, IW provides a holistic understanding of sustainability and well-being. ​ Through the lens of IW, policymakers can assess the overall health of their community by considering the value and condition of its resources, the skills and knowledge of its residents, and the quality of its infrastructure. This enables a more nuanced evaluation of sustainable development, taking into account the interconnectedness of economic, social, and environmental factors.

Below is a representation of all the resources included in an IW assessment.

While there are many approaches to creating sustainable communities, Inclusive Wealth offers the most holistic and comprehensive framework and expanding beyond traditional sustainability frameworks focused only on natural resources such as Climate Actions Plans or Planetary Boundaries; as well as going beyond traditional ideas of economics by including more than GDP; and by being more holistic and easy to use than the Sustainable Development Goals.