Navigating Sustainability: Unveiling County Priorities Through the Lens of Inclusive Wealth and SDGs

As we usher in 2024, the prominence of the UN Sustainable Development Goals (SDGs) in corporate reporting is unmistakable. A remarkable 72% of companies have embraced these goals in their annual reports, with a diverse prioritization spectrum. Leading the charge is Climate Action (#SDG13), while life below water (#SDG10) finds itself as the least emphasized goal, according to WBCSD, Principles for Purposeful Business, PWC.

Figure 1: Sustainable Development Goals prioritized by businesses

Delving deeper into the intricacies of sustainability, we explore how US counties navigate their priorities. Here, the Inclusive Wealth (IW) index emerges as a pivotal tool, endorsed by both the UN and World Bank. This index provides a comprehensive measure of a community's resources for sustainable development, distinct from the SDGs, which comprise 17 individual indicators. Unlike the granularity of the SDGs, IW stands as a singular measure, offering a holistic view of a community's total value through its produced, human, and natural resources. This facilitates an in-depth analysis of county-level investments in various SDGs, ensuring a nuanced understanding of their sustainability landscape.

For example, the SDG of Life on Land (#SDG15) within the IW framework captures the total value from cropland, pastureland, and forest through market profits and ecosystem service values. If the value of life on land increases more than the value of any other SDG, then we know that this county prioritized investing in their local ecosystem.  Here, the most prioritized means that the value of the goal increased the greatest amount from 2015 to 2022. 

The nuanced tale of county-level priorities unfolds through IW trends, revealing that US counties predominantly favor two SDGs: Decent Work and Economic Growth (#SDG8) and Life on Land (#SDG15), as depicted in Figure 2. Urban centers, marked by large populations and high carbon emissions, pivot towards decent work, resulting in heightened investments in education and industrial jobs. Conversely, rural counties, characterized by small populations and low carbon emissions, prioritize life on land, directing efforts towards agricultural output and ecosystem services.

Figure 2: Sustainable Development Goals prioritized by US Counties using data from Community Inclusive Wealth from 2015 to 2022.

Mapping the geographical distribution of these investments in Figure 3 offers a visual journey into Economic Growth's (#SDG8) urban concentration, Life on Land's (#SDG15) prevalence in rural areas, and Energy initiatives (#SDG7) in historically resource-focused states. Focuses on energy are in locations throughout Texas, West Virginia, and other states historically focused on non-renewable resource extraction. However, recently more attention has been centered around alternative sources of energy here and for them has the largest comparable gains. Governance (#SDG16) and Equity initiatives (#SDG10) scatter across the nation, with a particular emphasis in Florida due to its appeal as an attractive living destination, effectively managing pollution's adverse effects.

Figure 3: Map of US counties highlighting the Sustainable Development Goal that was the main priority from 2015 to 2021. Data and calculations from Community Inclusive Wealth.

Analyzing sustainability trends over time uncovers a significant shift. Counties advancing towards sustainability overwhelmingly prioritize Life on Land (#SDG15, 51%), focusing on agricultural production and forest ecosystem preservation when the majority of US counties are losing forest ecosystem land. Governance (#SDG16, 18%) initiatives follow suit, emphasizing population growth, resource management, and the fostering of social organizations. Equity initiatives (#SDG10, 15%) are also important through focusing on more equal mortality outcomes through decreased air pollution, increased environmental justice, and access to care. Notably, only 6% of evolving counties maintain a focus on Decent Work and Economic Growth, signaling a departure from traditional economic-centric approaches. These patterns are heightened when we look at the trends in counties that have become less sustainable over time. These counties primarily have focused on decent work and economic growth. Because they focus too much on economic growth without focusing on anything else, their sustainability paths are negative.

Figure 4 charts the impact of SDG priorities on Inclusive Wealth from 2015 to 2021. Counties prioritizing Life on Land (#SDG15) and Governance (#SDG16) exhibit the most significant IW increases, while those emphasizing Economic Growth (#SDG8) experience declines. This underscores the interconnectedness of SDGs and their direct influence on a community's inclusive wealth.

Figure 4: Average Inclusive Wealth outcomes from 2015 to 2022 for US Counties. Averages are based on what Sustainable Development Goal was the main priority from 2015 to 2022. Data and calculations from Community Inclusive Wealth.  

These findings underscore the imperative to diversify policy focus beyond economic growth for sustainable development. Rural counties thrive by leveraging natural resources, while others emphasize governance and social capital as key pillars for sustainability. Recognizing and addressing these nuanced priorities is crucial for tailoring effective policies that resonate with diverse county needs.

These observations hold significant implications for shaping future Climate Action Plans. Surprisingly, counties singularly prioritizing Climate Action (#SDG13) did not exhibit substantial increases in Inclusive Wealth over time. This might be attributed to their intense focus on reducing net carbon emissions, potentially overshadowing other co-benefits associated with emission reduction and synergies inherent in climate action. Consider, for instance, the possibility of broadening the focus to include clean energy and infrastructure enhancements, such as bus rapid transit and increased utilization of renewable energy sources. Not only would these measures contribute to emission reduction, but they could also lead to improvements in infrastructure, air quality, and the overall transition to cleaner energy, consequently enhancing health quality. Moreover, a more holistic approach to carbon sequestration within Climate Action Plans could yield substantial benefits. For instance, incorporating strategies like increased reforestation and wetland restoration could not only enhance net carbon sequestration but also positively impact Life on Land through improved ecosystem services. Additionally, such initiatives would contribute to elevated air and water quality, further enhancing overall health quality.

In essence, integrating diverse and comprehensive strategies within Climate Action Plans is crucial for achieving a broader spectrum of positive outcomes, ensuring a more holistic and sustainable approach to addressing environmental challenges.

Our experience at Community Inclusive Wealth highlights the critical role of holistic sustainability metrics in Climate Action Planning. Beyond the singular focus on emissions reduction, embracing comprehensive strategies becomes imperative for fostering genuine sustainability. This approach ensures that communities evolve beyond historical trends and communities that have followed our approach have decreased their net carbon emissions by 21 times their original Climate Action Plan while simultaneously increasing Inclusive Wealth as well.  

Understanding the nuanced differences in prioritizing UN Sustainable Development Goals between businesses and counties is essential for crafting effective sustainability strategies. At Community Inclusive Wealth, we champion an integrated approach, acknowledging the interconnectedness of diverse goals to pave the way for a resilient and sustainable future. Our Climate Action Planning embodies this ethos, going beyond net emissions considerations to include a spectrum of comprehensive sustainability metrics. This proactive approach safeguards against the risk of communities merely following historical trends in Climate Action without making tangible strides toward overall sustainability. The holistic consideration of Climate Action and other SDGs underscores our commitment to fostering lasting environmental, social, and economic well-being in the communities we serve.