Future Focus 2025

Pathways for Progress from

the Network of Global Future
Councils 2020–2022
INSIGHT REPORT
JUNE 2022
 Images: Getty Images, Unsplash

Contents
Preface 3

Executive summary 4

1 Economy 5

1.1 Economic growth and recovery 6

1.2 Fiscal and monetary policy 10

1.3 Investing 14

1.4 Responsive financial systems 19

1.5 Risk resilience 23

1.6 Trade and investment 27

1.7 Transparency and anti-corruption 31

2 Environment 35

2.1 Clean air 36

2.2 Clean electrification 40

2.3 Energy transition 44

2.4 Nature-based solutions 48

2.5 Net-zero transition 52

2.6 SDG investment 56

Disclaimer
The findings, 2.7 Sustainable tourism 60
interpretations and
conclusions expressed 3 Society 64
herein are a result of a
collaborative process 3.1 Education and skills 65
facilitated and endorsed
by the World Economic 3.2 Equity and social justice 69
Forum, but whose
results do not necessarily
3.3 Human rights 73
represent the views of
3.4 Mental health 76
the World Economic
Forum, or the entirety of 3.5 New agenda for fragility and resilience 79
its Members, Partners
or other stakeholders, 3.6 Social cohesion and just transition 83
or the individual Global
Future Council members 3.7 Work, wages and job creation 86
listed as contributors,
or their organizations. 4 Technology 90
This document is a
contribution to the World
4.1 Advanced manufacturing and value chains 91
Economic Forum’s
4.2 Agile governance 95
insight and interaction
activities and is published 4.3 Artificial intelligence for humanity 99
to elicit comments
and further debate. 4.4 Media, entertainment and sport 104

© 2022 World Economic 4.5 Quantum computing 106

Forum. All rights reserved.
No part of this publication 4.6 Scientific collaboration 112
may be reproduced
4.7 Space 116
or transmitted in any
form or by any means, 4.8 Synthetic biology 120
including photocopying
and recording, or by Contributors 124
any information storage
and retrieval system. Endnotes 126

Future Focus 2025 2

June 2022 Future Focus 2025
Pathways for Progress
from the Network of
Global Future Councils
2020–2022

Preface
The World Economic Forum Network of Global and policies needed to address economic,
Future Councils promotes innovative thinking to environmental, social and technological
shape a more inclusive, resilient and sustainable challenges and opportunities through to 2025.
future. The network comprises nearly 1,000 top
thinkers who provide foresight, generate insights This report draws from and supports the Forum’s
and identify potential solution frameworks for the platforms dedicated to catalysing a new economy
world’s most pressing challenges. and society, accelerating action for people and
the planet, leveraging Fourth Industrial Revolution
This Insight Report shares the outcomes of technologies, stewarding industry transformations
multistakeholder dialogues organized by nearly and enhancing global and regional cooperation.
30 of the Global Future Councils of the 2020- These platforms and their stakeholders work with
2022 term between October 2021 and January the Council experts and use the insights from
2022.1 The dialogues engaged Council members this report to shape their agendas for tackling the
to define interdisciplinary perspectives on a vision world’s greatest challenges and embedding greater
for 2025 in their domain area and to offer insights resilience and cooperation.
on the important transitions and the essential
actions required to drive progress and achieve Since early 2022, the world finds itself in a new
their vision. geopolitical crisis. In such challenging times, it
is imperative that the global community reflect
Given the timing of these dialogues, the post- on areas for cooperation and work towards an
pandemic recovery occupies an important space inclusive, resilient and sustainable future. It is
in the Council visions. It is an inspiring agenda hoped that these pages can provide a reminder
around which a sustainable recovery can be of the opportunity space for collaboration and the
built and an important guide for the partnerships pathways to get there.

Future Focus 2025 3

Executive summary
The global economy has demonstrated significant Chapter 2 on environmental matters proposes
resilience through the COVID-19 pandemic. Yet avenues, strategies and policy frameworks for
societies, the global economy and the planet advancing towards the net-zero transition by mid-
face unprecedented challenges and disruptions century, seizing opportunities to foster cleaner air
that remain urgent and require an unprecedented and clean electrification, to support the energy
transformation of the world’s economic, transition, to leverage nature-positive business
environmental and social systems. This is evidenced practices and to nurture sustainable tourism.
by the recent geopolitical crisis that emerged not
long after these Council visions were finalized in the Chapter 3 on social matters covers vital aspects
spring of 2022. Such a shock is a reminder that of what a new social contract should embrace
while one crisis may be at the forefront at any given in relation to education and skills, equity and
time, it is imperative that the global community social justice, mental health and social cohesion,
remember to explore a wide variety of issues in the and work wages and job creation. It emphasizes
longer term to ensure the overall health of society avenues that will support the creation of more
and its readiness for the next change. inclusive economic and social outcomes, human
rights and the humanitarian and development
As compound global risks continue to evolve, needs of fragile communities.
setting a sustainable, inclusive growth agenda
with clearly defined visions, pathways and Chapter 4 on technological matters explores
partnerships will become the key to future how to harness technological advances for
prosperity. Given the interdependencies of global social progress, while supporting responsible
issues, nations and organizations cannot address and equitable transitions into the digital future.
them in isolation. Instead, they require effective It highlights measures to design digital-ready
public- and private-sector cooperation to set the policies, deploy and scale up frontier technologies
ambition and address them in a more holistic way for the benefit of people and the planet, and
through partnerships and policy. new opportunities for data commons and
collaboration in scientific research and space.
This Insight Report covers four thematic areas where
important transitions and essential action are required Progress across these four areas holds the
to drive progress: the economy, environment, society potential for achieving a sustainable and inclusive
and technology. It is not intended as a blueprint but future. The visions for 2025 and the pathways
rather as a framework around which a positive and proposed in this report are drawn from the
inspiring agenda can be built. insights of pre-eminent thought leaders in the
World Economic Forum Network of Global Future
Chapter 1 on economic matters looks at tools that Councils and are laid out for reflection and action
policy-makers may deploy to build a more resilient, by public- and private-sector decision-makers to
sustainable and inclusive economy, including fiscal drive much-needed progress.
and monetary policies, specific types of and strategies
for investment, and resilience to global risks.

Future Focus 2025 4

1 Economy
1.1 Economic growth
and recovery
Bold government action can unleash private-
sector initiatives to create new markets
that will solve today’s biggest challenges.

Governments will need to play a driving role in of many technologies and business models, the
orienting markets towards this transformation. current economic and socio-technical systems
The goal in several industries is to develop and remain environmentally unsustainable.
mainstream a new set of products, services and
business models that provide solutions to the – Health crises. COVID-19 has highlighted the
problems that societies face today.2 importance of the timely development of, and
open access to, new medical solutions to
– Increased inequality. The distribution of wealth address both new and existing health crises.
and income has become unsustainably unequal
over past decades, leading to social tensions The response to the COVID-19 pandemic
and polarization and decreasing economic represents one of the pivotal moments in history
resilience in many countries. when radical change is possible, and societies have
been forced to question existing paradigms. Similar
– Climate change and environmental moments in the past enabled governments to lay
degradation. In spite of the increased efficiency new foundations for long-term, shared prosperity.3

Future Focus 2025 6

 Vision 2025

Economic transformation will depend on creating about the role of government in the economy
new, inclusive and sustainable markets. The remains focused on how big it should be rather
development of new niches into scaled markets goes than on how bold. A new narrative on the role of
through three main phases: 1) design, research and the public sector is needed, away from that of
development; 2) demonstration and experiments; burdensome bureaucracy to one of market co-
and 3) market scale-up. The first phase can be creator. This will in turn make public employment
focused on creating new institutional and societal more attractive to the right type of talent.5
models as much as new products, technologies
and business models. This process must be cyclical Only the combined efforts of the public and
and generative, with demonstrations and markets private sectors will be able to transform techno-
feeding back to further design and development economic paradigms and bring better and
for the healthy evolution of the ecosystem.4 broader growth. Yet public-private partnerships
around innovation and market creation have
Accelerating progress in these three phases of often been too unbalanced, and the benefits
market creation requires a new vision of how the of successful projects have not been fairly
public and private sectors can work together to drive distributed within the population.6
economic transformation.
Innovation in governance has been slower
A new narrative
than innovation in technology and business
on the role of the
public sector is Unleashing private-sector models. Addressing the growing tension
between techno-economic systems – the way
needed, away from initiative economic value is produced and the incentives
that of burdensome that shape markets – and institutions – the
bureaucracy to Over the past few decades, many advanced set of values, formal and informal rules and
one of market economies have progressively disinvested in the beliefs shared in communities – will be key for
co-creator. capabilities of their public sector. The debate building stronger public-private partnerships.7

Turning today’s declining competition levels could prevent the

incumbents from effectively positioning themselves
challenges into the in the most promising new markets. It is important
markets of tomorrow to look at the political economy behind the choice
of the innovation pathways: while government
support is vital, it is too often co-opted to serve
Today’s economic transformation builds on incumbent sectors.
the scientific and technological developments
of years past. Only a patient approach to The creation of new markets often requires
innovation financing can deliver a continuous a parallel approach on supply and demand.
pipeline of new discoveries that can shape New products might struggle to find a space
tomorrow’s markets in the direction needed, in the market even when they present superior
protecting people and the planet. characteristics, especially if they represent a
transformation in complementary know-how,
With the need to provide for a long-term pipeline infrastructure and other sunk costs. Governments
of R&D comes the tremendous opportunity to can support the demand for key products, but
accelerate the uptake across different contexts, transformative change often requires a change in
sectors and geographies of products and behaviour by entire communities, and a coordinated
technologies that are already mature. In all sectors, shift by actors, regimes and institutions.8

Future Focus 2025 7

 Pathways to Vision 2025

Investing within public – Establish a new legal blueprint for patents

and other IP. The need is to balance
administrations to develop private incentives and public interest for
dynamic capabilities and capacity transparency and the diffusion of knowledge.

Strategies for operationalizing this pathway include:9 – Rebalance risks and rewards. One way
is to focus on specific cases where the
– Encourage a new approach to public government provides support for research,
administration. This encouragement can be, for example through equity stakes or golden
for example, supporting an approach based shares of IP rights.
on experimentation and learning-by-doing.
– Develop initiatives that can diffuse knowledge
– Establish new norms of sharing rewards and IP. Specific challenges can be addressed
and develop skills in the public sector. through pools, pledges or mandatory licensing.
Adopting norms in terms of portfolio-
setting and risk-taking, coherently and – Increase scrutiny of anti-competitive
with an approach to public investment as practices. It is important, most notably, to
the investment of first resort, is needed. address patent trolls through dedicated
legislation and changes in the breadth of
– Design new metrics to evaluate public coverage granted to IP.
investments. This involves capturing the
dynamic spillovers that occur with bold
policies, which are hard to capture with static Rethinking value
cost–benefit and net present value analyses.

– Limit the outsourcing of key capabilities. Strategies for operationalizing this pathway include:11
Ramping up investment within the public
sector will enable it to become more capable – Scale hybrid methodologies for innovation. For
and develop “absorptive capacity”. example, social impact ventures, which better align
economic and societal value, embed a different
approach to governance and transparency.
Building symbiotic public-
Shifting – Adapt the measurement and accounting
private partnerships frameworks used to account for economic
practices and
behaviours within value. This can be done at both the micro and
Strategies for operationalizing this pathway include:10 macro levels by assigning a proper value to
companies towards
parts of the economy in which prices do not fully
lower carbon – Introduce conditionalities for public reflect their economic and societal contribution.
emissions, better investments, subsidies, guarantees and
working conditions bailouts. Shifting practices and behaviours – Pilot new solutions and public-private
and fewer share within companies towards lower carbon governance models. This entails embedding
buybacks is emissions, better working conditions societal values in the development of new
central. and fewer share buybacks is central. technologies and business models.

Future Focus 2025 8

Increasing patient investment to prioritize those that do not get attention
from current investors and industries.
in mission-driven research
– Shift government support. That support
Strategies for operationalizing this pathway include:12 should move from incumbent players and
sectors to new entrants.
– Set up dedicated vehicles through public
funding. Examples include national investment – Encourage partnerships among businesses,
banks or innovation funds specialized in the including small and medium-sized
provision of long-term funding (10-plus years). enterprises (SMEs). One means is to create
alignment on common production and
– Create urgency on missions of vital innovation challenges, pool knowledge and
importance in the long term. A good place diffuse benefits.
to start is by ensuring that governments,
businesses and civil society agree on the – Use demonstration effects. Possibilities
statement of a problem, and highlighting include inspiring local producers and helping
the fundamental threat it might pose to localize global solutions through pilots
society and developing a clear plan. and prototypes.

– Rewire private investments. This involves

building on the growing success of Co-creating demand
environmental, social and governance (ESG)
principles and embedding patience much
more strongly in the incentive mechanisms Strategies for operationalizing this pathway include:14
that drive the decisions of funds and investors,
throughout the full spectrum that includes – Change relative prices. This is possible, for
venture capitalists and philanthropists. example, through taxes, subsidies or other
forms of economic incentives.
– Strengthen available metrics. This includes
adding qualitative dimensions, such as the time – Ensure initial market demand. This can occur,
horizon of R&D projects, to existing indicators for example, through public procurement, public
in ESG standards and national statistics. works or other forms of direct public spending.

– Align leading stakeholders, most importantly

Scaling up the production governments. Building consensus on politically
feasible solutions that are a win-win within the
of goods, services and broader ecosystem is key.
technologies of tomorrow
– Work with communities to co-shape the
broader techno-economic system. Efforts
Strategies for operationalizing this pathway include:13 can influence their behaviours, preferences
and perceptions.
– Strengthen supply. Subsidies, capital grants,
government loans and other tools can help – Establish clear KPIs and rigorous assessment.
new entrants and trigger economies of scale. Assessing the relative performance of goods and
services brought to the market is critical.
– Target specific market niches that can help
address future challenges. It is important
1.2 Fiscal and
monetary policy
Public spending will need to become more
pro-poor and provide the necessary public
goods for sustainable inclusive growth.

Pandemic-induced lockdowns and the – Growing public- and private-sector debt.

ensuing global recession have created a highly The rapid build-up of debt across many
uncertain global outlook. Policy-makers are economies is among the key challenges
challenged to recalibrate their priorities and policy-makers face as they look ahead to
restructure their support by designing the right the post-pandemic economy. With higher
environment to shape fairer, more inclusive debt levels, small increases in interest rates
and sustainable economies and societies.15 can have a lasting impact on their fiscal
sustainability, while also mechanically reducing
Three main trends are shaping the global agenda the fiscal leeway to respond to future crises.
for fiscal and monetary policy:
– Intensifying climate imperative. According to
– Widening inequalities and divergent recent IMF estimates, GHG emissions are
recoveries. Pandemic-induced lockdowns still projected to rise by about 20% by 2030
and divergent recoveries on the back of under the most conservative scenario.18
uneven vaccination coverage have created a Among all the announced fiscal packages
highly uncertain and uneven global outlook. since the beginning of the pandemic, only a
Globalization is stalling, social capital is limited share was allocated to climate-positive
eroded by increasing inequality and political measures. The global net climate impact of
polarization, and the still-unfolding economic these measures remains negative.19 Although
crisis is threatening the livelihoods of billions of several economies have already implemented
people.16 Close to 95 million more people are or are scheduled to implement carbon pricing
estimated to have fallen below the threshold of initiatives, these initiatives only account for
extreme poverty in 2020 compared with pre- 22.3% of the estimated global GHGs.20
pandemic projections, reversing a two-decade-
long trend of global poverty reduction.17

Future Focus 2025 10

 Vision 2025

Building back broader through the social contract, which is crucial to

the long-term accountability of governments.23

High inequality within and across countries was Tax systems need to be redesigned to achieve
already a major challenge before the pandemic more efficient taxation on capital, in part to level
– a trend exacerbated by the pandemic. Despite the playing field for smaller businesses and to rein
extraordinary policy support, the employment and in monopoly power. International coordination
earnings effects of the pandemic have been highly on tax matters is needed now more than ever,
unequal, disproportionately affecting disadvantaged especially to deal with pressing challenges regarding
populations. Furthermore, the low coverage of the taxation of multinational enterprises and tax
existing social insurance systems is still a significant evasion by individuals using offshore accounts.
obstacle that prevents the prompt provision of The highest priority in international tax coordination
lifelines to households that are most in need. is with respect to climate change – where global
externalities have drastic consequences.
Public spending will need to become more pro-
poor and provide the necessary public goods for
sustainable inclusive growth. In the near term, Rethinking the division of
international cooperation, including financial
support, is also crucial to ensure that vaccines,
labour between fiscal and
treatments and medical supplies are distributed monetary policy
quickly and fairly across all countries.21 The uneven
access to vaccines and limited ability to mount an
appropriate policy response are setting back the The current economic downturn raises questions
development prospects of lower-income countries. about the division of labour between monetary and
fiscal policies. A fundamental reassessment of the
scope and roles of fiscal and monetary policy is
Transforming local and global required. The new framework needs to enhance
coordination between different policy tools during
tax architecture recessions as well as recoveries. This implies
that, when fiscal space is available, fiscal policy
By designing more progressive taxation will need to play a greater role in supporting the
mechanisms, the tax burden can be shifted economy while ensuring independent monetary
from the bottom to the top and provide a higher policy to anchor inflation expectations during
A fundamental tax base for revenue mobilization (especially in periods of rising inflation. Furthermore, despite
reassessment of countries with lower tax capacity) and contribute to the effectiveness of current monetary policy tools
the scope and financing social spending and structural reform.22 in maintaining liquidity and stability, monetary
roles of fiscal and People and households on lower incomes should policy alone cannot bring in the necessary
monetary policy not be removed from the tax system, however, structural transformations to build fairer, more
is required. since inclusion here is linked to political citizenship equitable and sustainable economies.24

Future Focus 2025 11

 Pathways to Vision 2025
Expanding Strengthening automatic Investing in human capital and
coverage of access stabilizers and safety nets fostering social mobility
to automatic
stabilizers in the
social insurance Strategies for operationalizing this pathway include: Strategies for operationalizing this pathway include:
systems should be
– Broaden the coverage of formal social – Bridge the education and skills gap. UNICEF
a key goal of social
insurance. Between March 2020 and May reports that schoolchildren worldwide have
protection reforms 2021, over 3,330 social protection measures lost an estimated 1.8 trillion hours of in-person
in the future. were planned or implemented in 222 countries learning due to COVID-19 lockdowns.30
or territories.25 Wage subsidies, cash transfers, According to the International Monetary Fund
training measures or extending coverage of (IMF), “Learning losses [are] especially large in
unemployment benefits have all been crucial emerging market and developing economies
tools to protect the most vulnerable populations and for children from poorer families and rural
during the pandemic. Of this spectrum, social areas lacking access to digital infrastructure.”31
insurance and automatic stabilizers have Unless forceful remedial actions are put in
several advantages,26 protecting families place, the pandemic could result in a brutal
from the shock and supporting aggregate reversal of past gains. Improving education
consumption. However, currently a mere 30.6% access, digital infrastructure and early childhood
of the working-age population is legally covered development will be crucial to ensure individuals
by comprehensive social security system have more equal opportunities to acquire skills
benefits.27 Thus, expanding coverage of access and improve social mobility. Also according to
to automatic stabilizers in the social insurance the IMF, “Tax policy can affect incentives for
systems should be a key goal of social human capital investment, especially in one’s
protection reforms in the future. children. Particularly in countries with more
developed tax systems, child tax credits to
– Expand the use of adaptive social protection lower-income households can have large effects
mechanisms. Given the low coverage of on children’s school attendance, performance
automatic stabilizers especially in low- and and future earnings.”32
middle-income countries, many families will
not be able to rely on them for the foreseeable – Support lifelong learning initiatives.
future, hence the importance of introducing The public sector needs to increase support
social protection mechanisms that adapt to for the reskilling and upskilling of at-risk
the nature of systemic shocks so that they can or displaced workers in the midst of job
enhance the capacity to prepare, cope with and transitions. Workers must urgently be
adapt to future shocks.28 Targeted cash transfer encouraged to develop their skills throughout
programmes tend to have the most significant their career while the public sector must
effect of all social assistance programmes in decisively tackle long-delayed improvements
reducing poverty and can improve human capital to education and training systems.33
accumulation and help households to smooth
out income shocks, reducing future inequality.29

Future Focus 2025 12

 Stimulus Embedding environmental Creating progressive, efficient
programmes sustainability in policy-making and fairer fiscal systems
should focus on
measures such
as tax incentives Strategies for operationalizing this pathway include: Strategies for operationalizing this pathway include:
and investments
– Reduce long-term support to carbon- – Improve the progressivity fiscal mechanisms.
in low-carbon,
intensive industries. Stimulus programmes These include increasing top marginal income
energy efficient should focus on measures such as tax and capital gains tax rates, which have
infrastructures, incentives and investments in low-carbon, declined in recent decades,37 and reforming
green R&D and energy efficient infrastructures, green R&D tax deductions that predominantly benefit
climate-smart and climate-smart technologies.34 Facilitating higher incomes. Inheritance/gift taxes and
technologies. a green economic transformation will also property taxation should also be considered.
entail a shift of workers away from carbon- The introduction or expansion of value-added
intensive and environmentally destructive taxes should be treated with caution. Although
production processes and towards jobs that it can effectively raise revenues from domestic
help reduce GHG emissions and improve consumption, it is important to ensure direct
environmental sustainability.35 transfers are in place to counterbalance the
negative impact that higher consumption taxes
– Create new multilateral decarbonization will have on the poor.38
frameworks. A framework that supports the
adoption of decarbonization tools such as – Transform the global corporate tax
national emission trading systems and carbon architecture. A leap forward was made in
taxes needs to be created. An international the recent multilateral OECD/G20 agreement
carbon tax price floor would serve as a on corporate taxation, but further progress is
reinforcing mechanism of near-term mitigation possible on fairness and the effectiveness of
action, complementing the Paris Agreement.36 this agreement. Lower-income countries will
continue to lose the greatest share of their
current tax revenues to corporate tax abuse39
and close to $483 billion in tax revenues are
still lost every year to global tax abuse.40 The
IMF and the UN have recommended a focus on
an additional “solidarity tax”, in which revenue-
raising is targeted on the wealth of the most
affluent and excess profit taxes on those that
have prospered during the pandemic.41

Future Focus 2025 13

1.3 Investing
By 2025, sustainability will truly be at
the heart of capital allocation and future
investment portfolios.

Investors are stewards of the world’s capital such as climate change, cybersecurity,
and are key in shaping a more long-term and pandemics and widening inequalities.
sustainable global economy. Institutional investors,
such as pension and sovereign wealth funds as – Greening the economy. The investment
well as asset managers and private equity firms, industry has the scale and influence to
influence their investees through active ownership, support global efforts to limit climate change
including engagement and voting, in addition to and drive the transition to net zero. As
making decisions about how capital is allocated. global pressure mounts to slash emissions,
the investment industry is pushing for
Climate change, widening inequality and social greater disclosure on carbon and investing
unrest are shifting the priorities of the investment to decarbonize operations. There are
industry. As the concept of stakeholder also significant opportunities to capitalize
capitalism has gained endorsements from the on the push for sustainable growth.
Business Roundtable, academics and policy-
makers, several trends have amplified the need – Increasing ESG reporting. ESG issues
for responsible and sustainable investment: have become the main theme of corporate
reporting and investor concerns.43 Pressure
– Rethinking risks and opportunities. to consolidate and align ESG metrics
COVID-19 has highlighted the fragility of and approaches culminated in the recent
economic, environmental and social systems. formation of the International Sustainability
Investors today need to manage 21st- Standards Board during COP26. Non-
century business risk and opportunity.42 This traditional reporting will continue to be high
includes considering systemic changes, on the agenda for global regulators.

Future Focus 2025 14

 Vision 2025

Greenwashing Incorporating sustainability – ESG means different things to different

has emerged as investors, however, creating confusion in the
a top challenge marketplace and making it difficult for investors
as sustainable Sustainability issues represent a material risk to align their values and investments.
investing becomes to investors and financial markets, and climate
mainstream. change is high on the agenda for all industries. Greenwashing concerns:
By 2025, sustainability will truly be at the heart of – Greenwashing is a process of providing
capital allocation and future investment portfolios. misleading information about sustainability
Recent estimates of the value of sustainability- performance, mostly due to the lack
themed products put the industry at $3.2 trillion of a clear, agreed definition.
in 2020, up more than 80% from 2019.44 This
is made up of sustainable funds, green bonds, – The lack of consistent and comparable ESG
social bonds and mixed-sustainability bonds. reporting and rankings allows companies to
cherry-pick the most flattering ratings, while their
Action on net-zero commitments: sustainability-related claims and commitments
– Despite several net-zero commitments and remain unchecked or unsubstantiated. A recent
industry alliances, solutions are needed to study by the International Consumer Protection
develop innovative financing approaches Enforcement Network found that roughly 40%
and de-risking measures, including risk of environmental claims made by companies
sharing by stakeholders across the could be misleading.46 These greenwashing
investment ecosystem, policy-makers concerns affect the accuracy and depth of
and multilateral development banks. insight as investors make capital allocation
decisions. On the flip side, companies may be
Full integration of ESG: reticent to share information for fear it could be
– Investors are increasingly committing to taken out of context or used against them.
integrating ESG considerations in their
processes. As at 2021, 4,000 investors – Greenwashing concerns related to sustainability-
representing $110 trillion in assets under linked financial products also exist. For
management are signatories to the institutional investors in particular, greenwashing
Principles for Responsible Investing.45 has emerged as a top challenge as sustainable
investing becomes mainstream.47

Future Focus 2025 15

Improving transparency According to the United Nations Conference on
Trade and Development (UNCTAD), “sustainability
from investors, regulators performance and ratings have expanded from
and companies company disclosure to an emphasis on fund
disclosure by asset owners, such as pension
funds.”48 This has increased the pressure on
ESG reporting is in its infancy compared to traditional investors to report on their own ESG progress
financial reporting, and an accurate assessment is as well as commit to improved transparency and
hampered by a plethora of overlapping standards, progress on diversity, equity and inclusion within the
resulting in a lack of consistent and comparable industry and in how capital is allocated.
reporting. For asset owners and managers who
expect to be able to undertake a comprehensive Regulators and policy-makers are also looking
analysis of company financial and non-financial closely at transparency in financial markets,
performance, this means that there is no comparable particularly as it relates to ESG corporate reporting
and consistent information across a portfolio. The and scrutiny of ESG-related financial products.
establishment of the International Sustainability
Standards Board at COP26 aims to address this
friction, but this takes time and uptake is voluntary.

Operating in an environment of Private markets do not offer the same level of

transparency as public markets and are less liquid,
growing private assets and the providing limited opportunities to exit on a timely
democratization of markets basis. This makes the selection of managers
very important – an issue that is explored by the
World Economic Forum Global Future Council
Public markets have historically driven massive on Investing.51 It also limits the choices of retail
economic growth, job creation, innovation and investors and their ability to invest in some of the
personal wealth-building. Therefore concerns have world’s fastest growing (but private) enterprises.
been raised recently that corporations and investors Although many risks are associated with investing in
are favouring raising funds via private markets.49 Initial privately-held firms, such as uncertainty, information
public offerings and the number of public firms have asymmetry, less liquidity and lower regulatory
declined, while the number of firms staying private oversight, the popularity of private investing
longer has risen. This trend is likely to continue, with continues to rise.
private markets predicted to make up 10% of global
assets under management by 2025, serving as an
important engine of economic growth.50

Future Focus 2025 16

 Pathways to Vision 2025

Integrating Integrating a responsible – Create sustainable value creation

sustainability through private equity. Due to the growing
investment approach importance of private assets, private equity
goes well beyond
is poised to drive sustainability because it is
principles and
Although momentum is building, the shift to positioned to drive business transformation
reporting; it affects
fully integrate sustainability into investment and align shareholders, management and
how investors processes will take time. To do this in a way that stakeholder communities to deliver a step-
price and think is consistent will also require significant effort. change in accelerating sustainable value
about risk, and creation and adopt ESG practices. In a
requires investors Strategies for operationalizing this pathway include: similar vein to public markets, the alignment
to rethink the of asset owner and private equity manager
traditional risk and – Be active stewards. Stewardship and ESG expectations when it comes to sustainability
return trade-off. integration are complementary strategies that can is needed. Through its work, the Global Future
enhance decision-making.52 Investors view active Council on Investing has highlighted the
ownership as an important lever for generating role private equity can play related to driving
sustainable financial returns, and a way to shape sustainable value creation.
investees’ business practices. Investors need to
play an active role in fostering good governance – Scale investment in sustainable solutions.
policies and practices throughout their portfolios. Integrating sustainability goes well beyond
principles and reporting; it affects how
– Address reporting inconsistencies. Without investors price and think about risk, and
consistent data it is difficult for investors to requires investors to rethink the traditional
accurately assess and compare approaches risk and return trade-off. Practical examples
to sustainability and performance. The World of how investors tackle environmental
Economic Forum-led Stakeholder Capitalism problems are needed. The Global Future
Metrics work is creating a common baseline Council on Investing has highlighted
for corporate sustainability reporting.53 The challenges in financing forest conservation54
establishment of the International Sustainability and in natural capital.55
Standards Board is an important step forward.

Future Focus 2025 17

 “Walking the talk” on More comprehensive strategies are needed
to ensure bottom-up action by investors
sustainability and diversity, to improve DE&I. This includes diagnosing
equity and inclusion talent flow issues using data, documenting
commitments across DE&I, soliciting leaders to
make personal commitments and taking action
Focusing the Investors must instil a sustainability mindset to track and report on progress.58,59
sustainability lens when it comes to investment approaches, but
inward will allow it is also equally as important that they “walk
investors to better the talk” on their own reporting and efforts to Tackling greenwashing
anticipate and improve diversity, equity and inclusion (DE&I).
adapt to new risks
Strategies for operationalizing this pathway include: As sustainability has reached the top of board
and opportunities agendas, so too has the risk of greenwashing. For
in the years ahead. – Report on own ESG performance. A majority investors, greenwashing risks exist at an investee
of institutional investors look for information level but also at a financial product level. Some
on sustainability issues “to better assess regulators are taking aim at investment firms that
companies’ adaptability and resilience and mislead the public and institutional investors about
monitor their risk management to inform the sustainability credentials of their products
investment decision-making and votes … and make misleading or erroneous claims.
Focusing the sustainability lens inward will
allow investors to better anticipate and adapt Strategies for progressing along this pathway include:
to new risks and opportunities in the years
ahead.”56 The audience for these metrics will – Standardize what makes a “sustainable”
vary by organization; in some cases, those investment. The CFA institute found that “78%
audiences may be internal or supervisory, or of practitioners surveyed believe there is a need
represent the broader public. The Global Future for improved standards around ESG products
Council on Investing paper entitled “Adapting to mitigate ‘greenwashing’” when it comes to
Corporate Sustainable Value Creation financial products.60
Indicators for Investors” details the case for
investors to disclose non-traditional metrics – Instigate greater financial innovation.
and offers a summary of priority ESG metrics.57 Financial innovations, including green bonds,
green loans and sustainability linked loans, have
– Improve DE&I. The business case for grown in the past few years, but innovation
prioritizing DE&I in the workplace has never opportunities exist in financial instruments and
been stronger: a DE&I culture attracts business models can create impact and be
and retains the best talent, leading to a implemented at scale.61
competitive advantage. Companies are also
more likely to have a deeper understanding – Improve public-private cooperation. An
of their clients and can evolve better to meet industry movement, working with government
changing client demands and needs. policy, will transform markets more drastically
than is currently being observed.62

Future Focus 2025 18

1.4 Responsive
financial systems
The global financial system is playing an
important role in enabling the ongoing
economic recovery and financing the
transition to a net-zero economy.

The global financial system is playing an important – Quantitative easing infinity. The US Federal
role in the ongoing economic recovery and in Reserve System’s distorted discount rates and
closing the net-zero funding gap to decarbonize new fiscal paradigms raise new questions for
economies and transform industries. However, monetary policy.
financiers and policy-makers are facing a changed
macro environment affected by disruption from – Regulatory toolkit. Unconventional tools,
the COVID-19 pandemic, international conflicts, new questions and unintended consequences
innovation, climate change and social inequality. require innovative policy thinking. New digital
forms of money, such as crypto assets,
Six themes retain the attention of policy-makers stablecoins and central bank digital currencies,
and financial leaders:63 pose a range of opportunities and challenges
to regulators.
– Digital-led recovery. Digital payments and
e-commerce are reshaping the agenda for – Transformed world. Deglobalization,
small businesses, financial inclusion and divergence, inequality and scaring from the
the future of money. While the pandemic pandemic pose a new set of problems.
accelerated digital transformation, it also made
addressing digital exclusion more urgent. Collaborative efforts and innovative solutions
must be built by existing and emerging financial
– Green transition. Finance plays a pivotal actors. To succeed, this shift requires policy
role in facilitating the transition to a net-zero leadership, a reconstituted regulatory framework
economy, and innovative approaches are and a fit-for-purpose governance framework to
needed to bridge the net-zero funding gap. guide a safe and smooth transition into a green
and digitalized economy.
– Finance reconstructed. Innovation is enabling
new firms, partnerships and interlinkages,
leading to a different financial architecture.

Future Focus 2025 19

 Vision 2025

By 2025, Today’s global financial system needs to evolve Moreover, the new financial ecosystem becomes
investors will to proactively respond to the needs of pandemic- digital and data-driven to support a smooth
play a larger role battered economies, thereby ultimately moving into energy transition and to address the challenges
in financing the an inclusive, sustainable and equitable net-zero of inadequately servicing SMEs and lower-income
innovation that will future society. cohorts, putting inclusion as its core mission.
be key to reach As has been pointed out, “Digital service providers
must find more innovative ways to educate their
the long-term 2050
net-zero targets. Financing the green transition customers about the products they are offering
and provide them with continued education as
individuals become more sophisticated in their
The transition to a lower-carbon economy requires use of investment products”.66 Effective digital
a large rewiring of the global economy, with some infrastructure and payment processes benefit poor
$3.5 trillion of investment needed annually “for communities and also open the door to the global
decades”.64 The shift to net zero will depend on marketplace for small businesses.
a policy framework and companies and investors
also seizing the opportunities and navigating the
risks of a complex transition. By 2025, investors Addressing governance
will play a larger role in financing the innovation
that will be key to reach the long-term 2050 net-
issues in a digital age
zero targets. This new phase of climate-aligned
investing will include “comparable metrics on As Central Bank Digital Currencies (CBDCs) gain
carbon footprints, throughout the entire value momentum around the globe, several questions
chain and across a whole portfolio”.65 In the long emerge regarding design characteristics and
run, this will facilitate greater climate engagement feasibility. Among the various debates discussed
and activism. between practitioners, policy-makers and regulators,
the issue of governance is perennially difficult and
one that will have a significant effect on the feasibility
Building an inclusive financial and usefulness of any potential initiative.
ecosystem With the dawn of the age of digital money, by 2025
common standards and approaches are shared to
Digital transformation offers the opportunity widen access and ensure that everyone can join the
to achieve a digitally and financially inclusive digitization journey. The need for autonomy and the
economy. As digital innovations continue to increasing modularity of digital networks in finance
connect economies and supply chains, a fit- demands a layered approach to governance,
for-purpose regulatory approach with new laws aiming to promote innovation, competition and
for data sharing is created with appropriate inclusion. Regulators work alongside technology
safeguards for privacy and security at an industrial experts, local enforcement and intergovernmental
scale, ensuring cybersecurity and the integrity of actors to design forward-thinking laws that keep
the global financial system. track of rapid developments in the digital age.

Future Focus 2025 20

 Pathways to Vision 2025

Accelerating the green transition changing the capital frameworks and bank
mandates, it is critical these institutions
do more. A constructive debate is needed
Strategies for operationalizing this pathway include: about leveraging balance sheets to support
innovation and the green transition.
– Adhere to new high-quality sustainability
disclosure standards. With countries and – Reduce green premiums. Greater emphasis
blocs seeking differing sustainability standards, is needed on creating innovative policies that
international bodies like the International accelerate change and increase innovation.
Sustainability Standards Board are important Finance can play an important role in
to shape globally aligned sustainable finance financing green innovations by ensuring a
disclosures. Innovation by data companies focus on the measures that shift the post-
and corporates on tracking carbon footprints, tax cost of capital. No government, public
however, will also be key. Corresponding bodies or capital market alone can bring
changes in investor behaviour involve or about a whole economy’s transition.
entail a shift in focus to a more bottom-up
approach to how individual businesses can
abate their carbon footprint from a top-down Building an inclusive financial
view of the overall sector (Figure 1).67
ecosystem
– Reform development banks to channel
and leverage finance to emerging Strategies for operationalizing these pathways
markets. Development banks provided include:
$66 billion of green finance in 2020 and
this could be multiplied to turbocharge – Re-establish infrastructure to form a new
clean-energy technology investment.68 financial ecosystem. Special efforts must be
Whether through capital increases for made to develop the following five elements:
the key development banks, simpler and a digital ID to provide affordable access to
smarter public-private partnerships, or financial services by households and SMEs;

FIGURE 1 A new phase for green investing

Past Present Future

Niche Scaling fast Mainstream

Largely thematic or Focus on transition More focus on

exclusionary. Often and net-zero bottom-up adaptation
values-led. commitments. and forward metrics.

Source: Huw van Steenis, Co-Chair, World Economic Forum Global Future Council on Responsive Financial Systems

Future Focus 2025 21

 Data and AI cybersecured and fully integrated infrastructure; independently of other parts of payment
analytics can be ethical and robust data governance frameworks; processes and systems, such as authorizing/
leveraged to allow an accessible enforcement regime on data authenticating transactions or applications.
and cybersecurity; and digital literacy through
access to financing
society-wide knowledge training and sharing. – Ensure data governance. The traditional
and reduce the
This requires global digital governance that financial service ecosystem has struggled for
cost of financing goes beyond the mandate of current standard- years to come up with data-sharing models
and insurance setting bodies, extending benefits to the that will boost competition and allow for new
premiums. underprivileged and connecting financial services and business models. A new CBDC
authorities with those in charge of data infrastructure could allow for a novel data-
protection, cybersecurity and competition to sharing and integration layer that can deliver
preserve an integrated global financial system. through APIs much more quickly and efficiently.

– Embrace new fintech players. Fintech players – Improve financial inclusion. A key decision
have proven successful in leveraging mobile regarding network governance is who receives
technology to make small-ticket payments access to the infrastructure, and under what
more affordable. Data and AI analytics can be terms and conditions. This has been a topic of
leveraged to allow access to financing and ongoing debates for decades when thinking of
reduce the cost of financing and insurance payment infrastructures nationally (e.g. access
premiums. In the future, innovation in financial to payment schemes such as BACS in the UK)
data services can be utilized to differentiate and internationally (e.g. access to payment
costs and risk measurements in ESG financing communication networks such as SWIFT).
and digitalize measurement techniques in CBDC or digital money infrastructure will call
inclusive loans and insurance policies. into question governance issues commonly
seen in national payment infrastructure.
Depending on governance conditions, its
Rethinking governance in the design can be more inclusive and contribute
to addressing financial exclusion.
age of digital currencies
– Address risk and fiscal governance.
Strategies for operationalizing these pathways Naturally, CBDCs are characterized as central
include: bank money, thus they are understood to be
a direct liability to the central bank who also
– Establish rules for digital identity governance. manages the risks and ensures the monetary
In the formal economy, the greatest part of a stability of the value transfer infrastructure (i.e.
payment transaction is verifying the identity through maintaining the core ledger). While
of the individuals or entities on either side of this archetype of fiscal and risk governance is
the transaction. While CBDCs promise to well-established as a model for CBDC design,
revolutionize payments and deliver efficiencies for different governance conditions could be
consumers (retail or commercial), it is still unclear envisioned to distribute the responsibilities and
how their architecture accommodates an identity allow for other financial institutions to play a
layer. A digital identity layer should be developed part in the running of the payment system.

Future Focus 2025 22

1.5 Risk resilience
Management of frontier risks ensures that
any negative impacts arising from human
progress are minimized.

– Advances into new territorial and geographic

The progress called for in the collective vision
frontiers, such as space exploration
for 2025 has the potential to better connect
and equalize the world – but in doing so, it – Breaches to ecological and environmental
could lower the natural containment barriers boundaries, such as geoengineering
to cascading global risks. Advances in digital
– Technologies expanding frontiers in human
equality, social equity and environmental
communication, such as through social
resilience could both contribute to, and be
networks and AI
destabilized by, several interconnected risks.
– Advances in the human-technology interface,
Among them, frontier risks require particular such as through genetic enhancement
attention. Frontier risks include the unintended
consequences of human progress: risks that The impact or likelihood of frontier risks is often
emerge as technologies surface or human and unknown and therefore almost impossible to fully
societal forces shift. There are at least four predict. Enhanced identification and monitoring
critical areas of human development for which of these risks, however, can ensure that any
there is more limited understanding of whether, unintended impacts on economies and societies
when and how specific risks could emerge: stemming from human development are minimized.

Future Focus 2025 23

 Vision 2025

Developing an expanded Enabling transparent

risk universe risk communication

“The more obscure a risk or the more distant Beyond organizational resilience, a clear and
someone is from a situation, the harder it is to pay consistent risk narrative that is transparently
attention to it.”69 Frontier risks pose a particular communicated to society will awaken policy-
challenge because early-warning signs are often makers and the public to more uncertain threats.
subtle and ambiguous. Potential blind spots in This narrative should be based on long-term risk
the management of frontier risks may arise from: scenarios, outlining drivers and trends which
are played out in multiple future dimensions.
– Systematic errors in judgement of the Importantly, effective narratives should focus
likelihood or impact of these risks, due not only on protective actions, but also on clear
to weak monitoring signals and cognitive explanations of the nature and known/unknown
biases around the perception of risk character of the risk, in language that is accessible
to the community.
– Institutional architecture, where diffuse
accountability or momentum to push
towards a frontier may cause decision- Ensuring a resilient risk response
makers to discount these risks

– Societal norms, such as a lack of public trust Governments, regional bodies and international
in public- and private-sector institutions, organizations have a role to play in preventing
or fragmentation between risk experts, the or hedging against potential risks. For example,
scientific community and decision-makers governments and international bodies should
prioritize closing gaps in legal frameworks
More effective identification and prioritization of governing new frontiers, such as in the realm of
potential unintended consequences relating to space or AI. This requires governing institutions
human progress will not only increase general to develop or collaborate with the private sector
awareness, but also allow decision-makers take to harness the expertise needed to responsibly
steps to mitigate exposure to these frontier risks. regulate these issues.

It is equally important to facilitate recovery from

Refining risk management the materialization of a frontier risk. COVID-19
has shown that economic buffers, such as
automatic stabilizers and agile emergency
Frontier risks do not usually fall neatly within existing spending triggers, are key to ensuring markets
Effective enterprise risk management (ERM) frameworks. can bounce back from unanticipated shocks.
narratives should At a minimum, defined ownership of these risks While debt is already at an all-time high, some
within senior management will ensure a more countries have managed to retain national
focus not only on
proactive response to emerging trends. Soft emergency funds and crisis reserves, while others
protective actions, controls, or organizational culture, can also enhance promote or provide insurance arrangements to
but also on clear resilience to threats. Entities with an openness shore up protections. Investment into critical
explanations of the to uncertainty and alternative viewpoints, the infrastructure and redundancy expenditure are
nature and known/ ability to track and learn from small failures, and vital as well. Such initiatives are part and parcel
unknown character a reliance on frontline knowledge will be better of a country’s ability to absorb unanticipated
of the risk. equipped to detect risks and recover from shocks. shocks and, therefore, its competitiveness.

Future Focus 2025 24

 Pathways to Vision 2025

Expanding risk perceptions the Future of Humanity and the Centre for the
Future of Intelligence.

Effective management relies on robust identification – Ensure diversity of perspectives when

and prioritization. Frontier risks are uncertain, mapping out the parameters of frontier
and risk assessment processes must be able to risks and future scenarios. Latent biases
correspondingly address information gaps and and groupthink can be addressed through
adapt to early signals in the risk landscape. Regular mechanisms that elevate under-represented
horizon scanning that draws from a diverse set of voices (such as on-site workers who can often
perspectives can help ensure that decision-makers detect early warning signs), bring in lessons
do not miss, underestimate or underprepare for from other fields (for example, task forces or
Regular horizon emerging frontier risks. panels of cross-sectoral experts with a mandate
scanning that to investigate a frontier risk), or are designed
draws from a Strategies for operationalizing this pathway include: to stress-test existing perceptions (including
diverse set of scenario-based peer reviews of crisis or
perspectives can – Leverage existing lists of risks developed management decisions).
by business, government or civil society
help ensure that
organizations. This should be a starting point, – Prioritize frontier risks, acknowledging
decision-makers with a particular focus on those that develop potential information gaps. Consideration can
do not miss, insights into new and developing risks alongside be given to multiple factors, such as likelihood,
underestimate existing risks. This includes existing intelligence impact, time to impact, connectivity with other
or underprepare developed by organizations that specialize in risks, controllability and the cost/benefit of
for emerging risks with uncertain characteristics, such as mitigation measures.
frontier risks. the Centre for the Study of Existential Risk,

Building risk-ready entities investing in a coordinating body with direct lines

to both the head of government and local units
is one approach.
Reorienting risk functions to ensure a responsive,
whole-of-entity approach is not only vital to an – Undertake regular monitoring of existing
entity’s ability to see through a crisis, but can also and new frontier risks. Scientific and legal
contribute to its broader competitiveness. developments should be considered, and big
data and machine learning harnessed, to better
Strategies for operationalizing this pathway include: anticipate the direction of change and speed
of travel for trends that may not otherwise be
– Assign accountability and develop visible to management.
escalation factors, prevention, mitigation
and recovery control measures. Frontier – Assess soft controls. For example,
risks should be integrated into existing ERM interviewing and surveying the workforce
processes, with accountability assigned to can help identify potential risk issues in
the C-Suite member(s). In the public sector, organizational culture, which may require
accountability should be centralized to avoid training or education to address.
narrow viewpoints and non-systemic solutions;

Future Focus 2025 25

 Well-formed Developing effective narratives Reorienting resources to
scenarios developed
in a collaborative
address frontier risks
process can help While the above can help ensure organizational
draw out potential resilience to these threats, broader societal Resources should be allocated towards both
impacts and educate preparedness requires transparent risk prevention (guardrails) and recovery (buffers).
the public on communication across multiple stakeholder Controls must be both broad and flexible enough
possible threats. groups. When lacking data to quantify risks to address the unknown nature of frontier risks.
and evaluate their likelihoods, well-formed
scenarios developed in a collaborative process Strategies for operationalizing this pathway include:
can help draw out potential impacts and
educate the public on possible threats. – Adopt precautionary principles in the
development of new technologies. Proactive
Strategies for operationalizing this pathway include: regulation should also seek to anticipate
potential future applications of emerging
– Develop clear scenarios that articulate technologies and related ethical issues.
the sources, drivers, amplifiers and tipping
points of a particular risk. They should – Prioritize closing gaps in legal standards
be robust enough to be useful to decision- governing new frontiers, such as space and
makers mapping out potential avenues for AI. International or transnational organizations
preparedness. may be well placed to coordinate frameworks or
standards for new realms.
– Be intentional about the language, format
and timing of communications. Use of – Reframe decision-making architecture to
behavioural science mechanisms, such as ensure adequate consideration of frontier
MINDSPACE (messenger, incentives, norms, risks in the allocation of investment. For
defaults, salience, priming, affect, commitment example, considerations around public financing
and ego),70 can help the narrative find greater could evolve to account for the longer-term
traction. For example, sensory tools, such as impacts and interconnections of frontier risks
art, gaming or virtual reality, can fill gaps and that could exacerbate down-the-line costs.
make threats “feel” real.
– Provide innovative insurance options to
– Protect against disinformation. Greater bridge gaps between frontier risks and
regulation of social networks and protection opportunities. Similarly, this could be as
against false information could help take the simple as a change to choice architecture to
onus off individuals to filter out misinformation encourage forward-thinking decision-making in
or disinformation and place the responsibility the selection of insurance products but, in some
on the government or businesses overseeing cases, stronger regulation and public-private
these networks. collaboration may be required. For example, in
light of increased flooding, France and Spain
have introduced government-backed schemes
that include a compulsory flat-rate surcharge for
flood and other hazard coverage, while in the
UK, mortgage lenders require flood coverage to
be included in standard household insurance.

Future Focus 2025 26

1.6 Trade and
investment
Trade and investment are crucial levers for
a sustainable and inclusive recovery that
benefits people and the planet.

As the world enters an unequal recovery, four and labour right violations demands action
trends stand out: on trade and investment. Vaccine inequity
is at the heart of the unequal recovery.
– Disruptions. Trade tensions, the COVID-19
pandemic, demand and supply shocks, – Dysfunction in trade governance. Existing
fluctuating transport costs, natural disasters, global trade rules have proven incapable
national security measures and semiconductor of adequately addressing complex trade
shortages have contributed to supply chain frictions arising from incompatibilities between
disruptions and highlighted the importance of market and non-market economies. Failure
risk planning and resilience. to achieve redress through multilateral
channels has led to an increase in unilateral
– Digitalization. The pandemic accelerated trade actions, some of which have been
digitalization, with digital trade keeping the taken on contentious grounds.
economy going through the crisis. Digitally
deliverable services grew from 52% of Trade and investment are crucial levers for a
service exports in 2019 to 64% in 2020.71 sustainable and inclusive recovery that benefits
people and the planet. Yet global economic
– Sustainability and inclusion. Concern about cooperation, rule-making and dispute settlement
vaccine equity, climate change, environmental are faltering, and the public is largely ambivalent
pollution, biodiversity loss, societal inequalities about globalization.72

Future Focus 2025 27

 Vision 2025

Enhancing economic growth – Raise living standards and wages; improve

working conditions, worker safety and pay;
and development and protect labour and human rights

Over the next three years, trade and investment – Enable micro, small and medium-sized
must serve as engines of economic recovery, enterprises (MSMEs) to fully engage in the
growth and development. In 2025, the vision is global economy
for policies and practices that:
– Benefit women73 and underserved and
– Facilitate trade and investment by removing marginalized communities, including ethnic
frictions and inefficiencies in the processes minorities and Indigenous peoples
involved in moving goods, services and capital
across borders Enabling environmental
– Boost employment, incomes, competitiveness,
sustainability
innovation and value chain upgrading through
economic integration, particularly in developing Trade and investment policies and practices have a
and least developed countries significant impact on production and consumption
around the world and can be powerful levers to
– Enable digital trade, while keeping in check such shift to more environmentally sustainable growth.
harms as threats to online competition or the As countries move to tackle climate change and
Trade and lack of competition regulation and enforcement, environmental degradation at different speeds and
investment policies and the lack of transparency often through unilateral measures, international
and practices have cooperation will be essential to avoid conflicts.
a significant impact – Support developing countries, especially the
on production least developed, to fully engage and benefit Trade and investment policies and practices
from trade and investment must align with sustainability goals to:
and consumption
around the world
and can be
Reducing societal inequalities – Mitigate climate change

powerful levers – Enable a circular economy and reduce waste

to shift to more For trade to be truly inclusive, it must benefit all
environmentally sections of society. The vision is for trade and – Reduce environmental pollution and protect
sustainable growth. flanking policies and practices that: biodiversity

Future Focus 2025 28

Pathways to Vision 2025
Supporting evidence-based scope, design and effects domestically and
internationally, as well as information on best
policy development practices, should inform policy development.
Gender-disaggregated data, and data on trade,
Sound economic policies are built on a strong ethnic minorities and Indigenous peoples, are
evidence base, inclusive and broad-based needed to inform more inclusive trade policy.
stakeholder dialogue and iterative and practical
testing and refinement. – Engage all stakeholders. Consultations must
include all stakeholders to ensure broad-based
Strategies for operationalizing this pathway input and buy-in.
include:
– Test and refine. There is scope for more
– Support data collection and analysis. Data piloting and iterative refining of economic policy.
and analysis on current economic policies, their

Advancing discussions and and fossil fuel subsidies; addressing tensions

between trade and climate policies, including
meaningful agreements carbon taxes and border adjustment; and
reducing siloes between trade, environment
While many governments have advanced new and development policy-making by aligning
trade rules through bilateral and regional trade trade action with international environmental
agreements, some areas would benefit from commitments, while ensuring a just transition.
multilateral and plurilateral rule-making through
the World Trade Organization (WTO). – Advance ambitious agreements on trade
and gender, MSMEs and least developed
Strategies for operationalizing this pathway include: countries. This will ensure that the benefits
of trade reach all sections of society and all
– Conclude a meaningful electronic WTO members.
commerce agreement. The agreement must
seek to improve access and interoperability, – Advance a trade and health agenda. A trade
enable safe and efficient digital trade and and health package may include lowering
data flows, promote openness and trust, tariff and administrative barriers to trade in
and address market access issues. Also, inputs and final products, facilitating global
countries should abstain from applying manufacturing investment, improving supply
customs duties on electronic transmissions. chain transparency, removing export restraints
and addressing the relationship between IP
– Conclude a meaningful investment rights and access to life-saving technologies.
facilitation for development agreement.
The agreement should aim to improve – Discuss level-playing-field concerns.
transparency and predictability, streamline Members should initiate open and inclusive
administrative procedures, reduce disputes discussions to resolve level-playing-field concerns
and enhance sustainable investment. on subsidies, state-owned enterprises, and trade
remedies and government procurement across
– Conclude environmental agreements. This industrial, agricultural and service sectors.
includes delivering agreements on fisheries

Future Focus 2025 29

 Reforming trade governance certain that sustainable supply chains ensure
environmental and societal benefits.

Various WTO members have put forward proposals Strategies for operationalizing this pathway include:
for reform. Members must work together to address
common concerns to revitalize multilateralism – Facilitate trade in goods. Efforts can include
and reduce the incentive for unilateral action. supporting developing countries in implementing
the Agreement on Trade Facilitation and
Strategies for operationalizing this pathway include: encouraging public-private initiatives to identify
and tackle specific bottlenecks.
– Revitalize rule-making. Trade rules can
be updated by working through open – Streamline domestic regulation of services.
plurilateral negotiations (where necessary) and This can be pursued by supporting developing
multilateral negotiations (where possible). country implementation of commitments in the
Joint Statement Initiative Reference Paper on
– Promote transparency. This can be Services Domestic Regulation.
furthered by supporting and incentivizing
the notification of measures by countries; – Facilitate investment. Action here can
encouraging independent, third-party include advancing an agreement on facilitating
initiatives that track trade measures; and investment for development, supporting
monitoring compliance with commitments. developing countries in implementation, and
encouraging public-private initiatives to identify
– Restore dispute settlement. Efforts in this area and tackle specific bottlenecks and enable
can include addressing members’ concerns sustainable investment.
with the WTO’s dispute settlement system
and appointing Appellate Body members. – Support sustainable trade. A range of
approaches is possible, such as creating
platforms to share best practices in meeting
Supporting public-private the challenges of sustainable trade and
striking a balance across the economic, social,
initiatives to facilitate sustainable and environmental pillars of sustainability;
trade and investment recognizing the role supply chains can play
in contributing to climate action, the circular
economy, labour protection, gender equity,
Public-private Facilitating trade in goods and services, as well ethnic minorities, Indigenous peoples’ upliftment
action is needed to as investment, can result in gains in efficiency and MSME development; identifying and
make certain that and boost economic growth and development. addressing barriers to making supply chains
sustainable supply Facilitation involves simplifying, streamlining, and business practices environmentally and
chains ensure modernizing and harmonizing administrative societally sustainable; ensuring coherent
environmental and processes throughout the supply chain. In regulation and standards; and supporting supply
societal benefits. addition, public-private action is needed to make chain traceability as an enabler.

Future Focus 2025 30

 1.7 Transparency and
anti-corruption
Technology-driven gains in transparency and
accountability are critical for confidence in
business and trust in government.

Today, Corruption costs the world economy approximately – An increase in transnational, cross-
organizations are 5% of GDP, or $3.6 trillion, annually.74 Moreover, sectoral corruption risks. High-profile global
exposed to a wider estimated monetary losses do not reflect the total investigations, such as the “Panama”, “Paradise”
variety of legal and cost of corrupt acts. A $1 million bribe can easily be and “Pandora” papers, have drawn widespread
reputational risks magnified into $100 million in damage to society, attention to the role of certain industries in
as corruption can deter future investment, result in relation to money laundering, financial fraud,
than ever before.
substandard infrastructure and lead to underfunded corruption schemes, tax/sanctions evasion and
social programmes, among other harms. criminal/terrorist financing.

The field of transparency and anti-corruption is – The digital disruption of anti-corruption.

rapidly evolving, with key trends emerging in the Developments in AI, blockchain,
following areas: cryptocurrency and digitalized government
services are reshaping corruption risks and
– The expansion of ethics and integrity risks. anti-corruption mechanisms.
Today organizations are exposed to a wider
variety of legal and reputational risks than The World Economic Forum Global Future
ever before. Factors such as employee voice, Council on Transparency and Anti-Corruption
human rights and environmental sustainability has developed an agenda for business integrity
have begun to redefine corporate priorities based upon four pillars: 1) committing to ethics
and shed new light on the importance of and integrity beyond compliance; 2) strengthening
integrity, accountability and transparency. corporate culture and incentives to drive
continuous learning and improvement; 3) leveraging
– A growing focus on ESG frameworks. As the technologies; and 4) supporting collective action.
momentum around ESG investing translates
into metrics, action and binding law, the role
and significance of corruption is often sidelined.

Future Focus 2025 31

 Vision 2025

Breaking silos between ethics Embedding integrity into ESG

and integrity performance

Technology- Public concern around inequity, human rights The world’s attention has justifiably fixated on the
driven gains in abuses, the environmental crisis and corporate existential threats of corporate-caused climate
transparency and hypocrisy are translating into an evolving and change and, increasingly, human rights abuses
accountability expanding regulatory agenda. The current and inequity. However, investors, regulators
prove critical climate of heightened expectations and legal and corporate actors should not lose sight of
obligations necessitate a more strategic and the corrupt conduct that frequently enables
for increasing
coordinated approach to integrity commitments, environmentally and socially corrosive behaviour.
confidence in
one that is driven by a culture of integrity
business and beyond compliance. The disruption of long- Within ESG, corruption is both a vertical and
restoring trust in standing tendencies to silo integrity risks and horizontal concern – directly measurable as a
government. turn ethics into box-ticking, which serve neither key factor within the “G”, while simultaneously
organizational nor stakeholder interests, is key. impacting the “S” and “E”. The growing global
momentum around combatting inequity, human
rights violations and climate change will prove
futile if corruption is not simultaneously reigned in.

Combatting transnational, cross- Maximizing the anti-corruption

sectoral illicit financial flows potential of tech innovation

No single country, company or industry can Technological innovation is changing, challenging

achieve its anti-corruption goals alone. Although and enhancing the field of anti-corruption. Most
governmental resources and attention have technological developments present both negative
powered anti-corruption efforts for decades, the and positive anti-corruption potential – increasing
role and responsibility of the private sector is transparency and accessibility while opening new
increasingly in the spotlight. avenues for abuse by hackers and criminals. To
fully appreciate the corruption risks and anti-
While professionals in some countries are highly corruption potential of digitalization, integrity,
regulated, others have no affirmative duty to report accountability and transparency is placed at the
suspected criminal activity or verify the origin of the heart of tech initiatives from the outset. Moreover,
assets they handle. This patchwork and frequently from transparent public procurement processes
lacklustre approach to private-sector regulation to data-driven early warning systems, technology-
has come at a high cost, allowing corrupt actors driven gains in transparency and accountability
to manipulate markets, erode public services, prove critical for increasing confidence in
fund criminal networks and waste trillions of business and restoring trust in government.
dollars annually.75

Future Focus 2025 32

 Pathways to Vision 2025

Leveraging practitioner insights Raising the role and profile of

to achieve holistic organizational organizational integrity within
integrity ESG frameworks

Increasing stakeholder expectations and an Organizational integrity should be understood as

expanding regulatory agenda require organizations the foundational element of any ESG framework.
to foster internal alignment and collaboration across It is impossible to achieve environmental, social,
ESG/sustainability, public affairs, risk, ethics and governance or financial goals without properly
compliance. Organizational commitments can accounting for corruption risks. Corruption also
no longer be based solely on calculations that impacts the entire range of stakeholders, from
will drive growth and increase profit. The integrity shareholders and employees, to community
mandate must include all of an organization’s members and the planet. As such, realizing a
regulatory and voluntary commitments, as well stakeholder-centred and sustainable business
as other sources of stakeholder expectations. agenda – the stated goal of the Business Roundtable
Speaking to and working with practitioners will and the World Economic Forum International
prove vital to achieving and operationalizing an Business Council – cannot be achieved without
integrated approach to ethics and integrity. tackling corruption. Organizations and investors must
ensure that their values align with their ESG priorities
Strategies for operationalizing this pathway include: and that both include integrity at their centre.

– Empower and expand the integrity function. Strategies for operationalizing this pathway include:
The World Economic Forum White Paper entitled
“The Rise and Role of the Chief Integrity Officer: – Chart a path for investing with integrity. In a
Leadership Imperatives in an ESG-Driven World” forthcoming series on investing with integrity,
outlines key outcomes and recommendations the Global Future Council makes the case for
for chief integrity officers adapting to the current raising the profile of corruption risks within
climate of heightened risk and opportunity.76 ESG investing frameworks. The series also
Organizations provides key recommendations for the investor
– Foster integrity-based collective action and universe (asset managers, asset owners,
and investors must
peer learning. The Council and the World rating agencies and transnational standard-
ensure that their Economic Forum Partnering Against Corruption setting organizations) on how to effectively
values align with Initiative (PACI) convened a peer learning incorporate and prioritize corruption risks.
their ESG priorities session with corporate compliance officers
and that both from industry-leading organizations focused – Embed ESG within organizational integrity
include integrity at on the intersection of and synergies between priorities. The Forum White Paper, “The Rise
their centre. anti-corruption and human rights compliance. and Role of the Chief Integrity Officer”, includes

Future Focus 2025 33

 recommendations on how integrity officers convened by the Council and PACI, with the
can use materiality and risk assessments, as support of the World Bank-UN Office on
well as a long-term and holistic outlook, to Drugs and Crime (UNODC) Stolen Asset
effectively operationalize ESG integration. Recovery Initiative.79

– Leverage existing fora. Dialogue and peer

Facilitating transnational and learning about anti-corruption trends, priorities
and future pathways can be facilitated. The
multisectoral anti-corruption Council leverages the expertise of the PACI
action community in guiding its research agenda and
shaping recommendations.

The transnational and multisectoral nature of

illicit financial flows demands a transnational Promoting the advancement and
and multisectoral response. The adoption of
common frameworks and coalitions across a
adoption of tech for integrity
diverse array of professionals presents various
benefits. First, such frameworks invite collective Data-driven, tech-based anti-corruption solutions
recognition. At present, many private-sector are rapidly expanding in sophistication and
professionals and even entire industries do not potential. Tech innovations, powered by data
fully appreciate their role in facilitating harmful and behavioural insight, are disrupting corruption
financial activities. Second, collective action risks and boosting integrity systems. They are
more adequately addresses the reality of an accelerating new forms of accountability based on
interconnected world, in which the weakness of the smarter exploitation of big data and fostering
one actor or industry becomes the weakness new public-private partnerships for integrity. In
of all. Third, there is strength in numbers. The the digital era, data have become critical assets
development of a unified, collective approach for integrity actors to detect and deter fraud risks,
to fighting corruption will minimize the costs of complex networks and corrupt practices.80
illicit financial flows to society while maximizing
the benefits of increased integrity.77 Strategies for operationalizing this pathway include:
The development
of a unified, Strategies for operationalizing this pathway include: – Facilitate peer learning around tech for
collective approach integrity. PACI’s Tech for Integrity (T4I) platform
to fighting – Endorse the Unifying Framework for provides insight on digital anti-corruption
gatekeeping professionals. The Unifying solutions and builds networks across sectors
corruption will
Framework, launched in June 2021, is “a and the public-private divide. T4I helps
minimize the costs value‑based self‑regulatory framework promote the advancement and adoption of
of illicit financial for private-sector intermediaries who are digital anti-corruption solutions through the
flows to society strategically positioned to prevent or interrupt sharing of best practices by industry experts,
while maximizing illicit financial flows – collectively referred to while also building awareness of the positive
the benefits of as ‘gatekeepers’”.78 It was developed by a and negative potential of tech innovation.
increased integrity. cross-sectoral task force of industry leaders

Future Focus 2025 34

2 Environment
2.1 Clean air
Reducing air pollution will allow healthier
and more productive lives, a healthier
natural environment, economic benefits and
increased shared prosperity.

Air pollution is a transboundary challenge that is inequitable as it is influenced by age,

affects everyone, particularly the most vulnerable. gender, income levels, access to nutrition
Reducing air pollution will provide benefits like and healthcare, and underlying diseases.
healthier and more productive lives, a healthier
natural environment, economic benefits and – Climate change. Reducing air pollution
increased shared prosperity. Addressing air contributes to climate action as air
pollution will contribute to keeping global warming pollutants come from the same sources
under 1.5° C. as GHGs. Many air pollutants are both
bad for human health and are powerful
– Human right. Clean air is a human right and accelerators of climate change, thus
a priority. According to the United Nations impacting people’s lives and making the
Environment Programme, air pollution is the future less safe for future generations.
largest environmental risk to global public
health.81 It harms human health and well- Calls for urgent action on reducing air pollution
being, reduces quality of life and is linked to have increased in recent years. The World
premature mortality. The majority of the world’s Economic Forum Global Future Council on Clean
population lives in areas with high air pollution.82 Air joins these calls for action and promotes an
integrated approach to improving air quality for all,
– Equity. Although everyone is affected by air based on scientific evidence, strong political action
pollution, the distribution of disease burden and a participatory, multistakeholder approach.

Future Focus 2025 36

Vision 2025

Building strong networks at the – Countries have the capacity to monitor air quality
and develop air pollution emission inventories
local, regional and national levels that are regularly updated and publicly reported.

Air pollution has local, regional, national and global

impact. The transboundary nature of air pollution Rethinking education
requires regional and international, coordinated
and joined efforts with clear and ambitious
reduction targets. Strong networks enhance Air pollution is part of curricula of different grades
knowledge and best practice exchanges and further in various courses and modules. Education
understanding of the complexity of air pollution. for Sustainable Development (ESD) is present
Cross-stakeholder collaboration and fora advise in curricula across the world in different age
local and national governments on actions that groups, and air pollution is one of the key themes
can be taken to design and develop appropriate discussed explicitly in different grades and
mitigation pathways to reduce emissions. disseminated worldwide. Including air pollution in
the curricula builds the skills but also the attitudes
Local action needed to approach this complex problem and
to foster new generations of problem-solvers.
– Cities join existing networks (e.g. C40, UN
Sustainable Cities), working together to Interdisciplinary approaches include:
enhance their agenda on sustainable
development and achieve the United Nations – Air pollution is explicitly present in curricula
Sustainable Development Goals (SDGs) that of all disciplines and all grades.
include air pollution.
– Air pollution is clearly presented as an
– Cities have the capacity to monitor and report interdisciplinary challenge that requires
air pollution. interdisciplinary solutions.

– Cities develop air pollution emission inventories – Air pollution is presented with adequate scope
that are regularly updated. and context so that the different disciplines and
grades understand the wide range of its impacts.

Regional and international

collaboration Recognizing private-sector
leadership and action
– Countries join and actively participate in
conventions (e.g. United Nations Economic The private sector measures and takes action
Commission for Europe Long-range to reduce air pollution within the operations of
Transboundary Air Pollution – LRTAP companies and uses its influence on supply chains
Convention) that aim to limit, reduce and to reduce associated air pollution. This increases
prevent air pollution. the visibility of air pollution and its effects, and
more companies join to champion action for
– Countries introduce and enforce regulations that clean air. Companies use assets and abilities
follow the Air Quality Guidelines set by the World innovatively to tackle and reduce existing air
Health Organization. pollution emissions and prevent future emissions.

Future Focus 2025 37

Pathways to Vision 2025

Investing in local networks – Invest in capacity building. Improvement

is needed in the capacity of local and
national governments to understand the
While actions to improve air quality at the national complex nature of the issue scientifically, the
level remain critical, local and regional actions play a institutional mechanisms that enable complex
key role in addressing the challenge of air pollution coordination between different agencies
by targeting key sectors (transport, residential). within government to achieve an outcome,
and policy formulation and monitoring
Strategies for operationalizing this pathway include: based on data and scientific evidence.

– Increase knowledge exchange between – Join existing initiatives. Participating in

regions. Establishing monitoring networks, networks or projects such as BreatheLife or
assessing the health impacts and developing C40 Cities’ Clean Air Cities Declaration
appropriate local policies can play a critical role demonstrates a commitment to bring air quality
in reducing premature mortality, improving life to safe levels and collaborate on accelerated
quality and reducing costs related to air pollution. clean air solutions.

Preparing the next generation of Strategies for operationalizing this pathway include:
thought leaders – Invest in the power of young people. Engaging
with them at an early age and informing and
Mapping and understanding the needs of educating them on the magnitude of the air
students, life-long learners and educators is a key pollution challenge will motivate their efforts.
step to appropriately include ESD and, therefore,
air pollution in the different curricula. An open – Involve universities and educators.
and transparent dialogue between the various Educational institutions can incorporate air
stakeholders (educational institutions, students, pollution into curricula.
government agencies) must be promoted, and
schools and universities need to respond to the – Promote transparent, multistakeholder
increasing demand for more ESD. dialogues. Diverse voices need to be
represented in the creation of the curricula.

Future Focus 2025 38

 Monitoring, reporting and Adopting a “Learn, Act, Engage”
reducing emissions framework

The private sector has a key role to play in To achieve meaningful reductions in air pollution,
achieving the global reduction of air pollution. the focus must be on widening the participation
Appropriate monitoring and reporting of emissions and awareness of all citizens. The “Learn, Act,
are a critical step to achieve the desired air Engage” framework represents steps and actions
pollution reductions. Despite the fact that most that citizens can take to reduce air pollution.
companies have developed sustainability agendas,
very few companies monitor and report their air Strategies for operationalizing this pathway
pollution emissions across their value chains. include:

Strategies for operationalizing this pathway include:

– Improve access to real-time data. Citizens
should have access to reliable, real-time data
– Share best practices. Either within a specific
that present air pollution levels in their area.
industry, or across diverse industries, best
practices need to be shared to achieve the
– Use participatory approaches in decision-
desired reductions in emissions as quickly and
making. To ensure all societal groups are
as efficiently as possible.
appropriately represented in decision- and
– Develop emission inventories. This can policy-making, the focus must be on
Appropriate participatory approaches that take into
be done through integrated approaches that
monitoring and consideration the different perspectives
address GHG and air pollution emissions.
reporting of of citizens.
emissions are a – Join the Alliance for Clean Air. The Global
critical step to Future Council on Clean Air has developed – Raise awareness. Raising awareness of
achieve the desired the Alliance for Clean Air, which gathers the issue of air pollution is critical as citizens
air pollution business leaders to understand their impact in many cities are exposed in harmful, life-
reductions. on air quality and to act to reduce it. threatening pollutants in their daily lives.

Future Focus 2025 39

2.2 Clean electrification
60% of current emissions would be
reduced by electrifying road transport,
buildings and low-temperature
industrial processes, in combination
with renewable power generation.

According to the International Energy Agency temperature rise must be limited to 1.5° C
in its World Energy Outlook 2021, “electricity’s by the end of the century. Halving carbon
share of the world’s final consumption of energy emissions by 2030 will require electrifying
has risen steadily over recent decades”, and energy demand and supplying it with
it promises to become the energy source on renewable generation.
which consumers rely for all their everyday
needs.83 The reliability, resilience and affordability – The new energy economy. Higher degrees of
of electricity will become even more critical. electrification of energy use in areas like mobility,
industries and cities, and the increasing speed
Two developments are particularly important: of technological developments, are driving the
emergence of a new energy economy, which
– The climate imperative. To avoid the most will be more electrified, efficient, interconnected
damaging effects of global warming, the and clean.

Future Focus 2025 40

 Vision 2025

Increasing the electrification of approximately 6% fugitive emissions from the oil and
gas industry.88 In total, 60% of current emissions
energy uses to reduce emissions would be reduced by electrifying road transport,
buildings and low-temperature industrial processes,
The electrification of end uses offers higher potential in combination with renewable power generation.89
in reducing greenhouse gas (GHG) emissions. The
three energy uses that are ready for transformation
include: Benefiting from efficiency
– Mobility: the electrification of road transport
gains through electrification
would reduce current equivalent CO2 emissions
by approximately 12%.84 One of the key benefits of electrification, particularly
electrification powered by renewables, is the
– Buildings: electrification of heating would reduce enormous efficiency gain that can be realized: this
equivalent CO2 emissions by approximately 6%.85 approach will halve the primary energy requirements
of most economies.
– Industry: all processes with industrial heat
requirements below 1,000° C could be The current energy system is wasteful. In the United
electrified with technologies available today, States alone, approximately 70% of primary energy
eliminating approximately 6% of equivalent is “rejected energy”. An electric car uses about one-
CO2 emissions.86 third of the energy than a car with a diesel or petrol
engine. A heat pump powered by clean electricity
Direct electrification is the obvious winner in provides two to four times as much heat to a home
Accelerating the
these three sectors for speed, scale and cost. as a boiler powered by natural gas. Similarly, on
decarbonization of
This is because the technologies already exist, the supply side, renewable power plants are far
the power sector and in fact are easier to access for retrofit due more efficient than their fossil fuel counterparts,90
(on current uses) to shorter lifespans. In addition, accelerating as coal and gas power plants lose almost half
would further the decarbonization of the power sector (on of their energy as heat. In addition, a typically
reduce emissions current uses) would further reduce emissions by underappreciated benefit of clean electrification
by approximately approximately 30%.87 Finally, the displacement of is the elimination of supply chains for mining and
30%. fossil fuels would have a positive impact on the moving the fossil fuels around the globe.

Future Focus 2025 41

Pathways to Vision 2025

Mainstreaming policy and action – Focus on critical industries. Several

industries must scale ten-fold: electric
vehicle production, heat pump production,
Clean technology has reached maturity. Now, battery production, and wind and solar
additional policy, regulation and strategy are energy production.
needed for massive deployment. Governments
may take the lead on policies to support the – Train the workforce. Unprecedented
transformation, which will have major economic levels of workforce training are needed,
and environmental benefits in the long run. This including retraining and incentives for the
support includes: fossil fuel industry workforce to transition
to electrification.

Enabling electrification by from consumers to service providers. Those

providers, in turn, reach agreements with
empowering demand insurers, energy companies and institutional
investors ready to take over both capital for
The electricity grid was designed for consistent, retrofitting and even operational expenses, in
predictable power generation, while large exchange for reasonable performance paybacks.
amounts of variable renewables will be
needed for decarbonization. New digital
technologies, however, can be incorporated Evolving economic policy
that can make the demand flexible enough to
accommodate fluctuations in generation.
Current policies in most countries are still adapted
Strategies for enabling electrification by empowering to a fossil-fuel based energy system. This situation
demand include: must change to unlock clean energy technologies.

– Focus on deployment. Technology is ready Strategies for operationalizing this pathway include:
to meet that challenge. Both hardware and
software technologies are readily available: – Align fiscal tools with decarbonization
distributed energy resources, vehicle-to-grid goals. Clean technologies typically have
charging and smart metres are just some higher up-front capital costs and lower
examples. What is missing now are the market ongoing fuel and maintenance costs than the
mechanisms to allow those technologies to be polluting alternatives. This challenge needs to
deployed at scale. be met with financing that makes the future
more affordable.
– Promote new business models. Such models
should transfer capital expenditures and risk – Remove subsidies for fossil fuels. Subsidies
from smaller players to financial providers and and tax incentives for fossil fuels are still
empower all stakeholders to become active present in many countries. Due to this market
contributors to a decarbonized power grid.91 distortion, a residential customer typically has
A promising model is “Energy as a Service”, no economic incentive to change their heating
which shifts the cost and responsibility of the system from fossil fuels to cleaner alternatives,
design, installation, maintenance and even and it also negatively impacts the economics of
management of distributed energy resources electric vehicles vis-à-vis petrol-powered cars.

Future Focus 2025 42

 Regulation is Strengthening and products and services but also the life-cycle
needed for new improving standards carbon footprint of products and services. Such
buildings to comply improvements in standards will push the world
with emission towards better usage of existing resources
limits and for Product standards provide the necessary tools and a circular economy, which benefits both
and guidance to designers, producers, planners, the climate and the wider environment.
existing buildings
builders, financiers and operators to ensure safety,
to meet a carbon
reliability and operability. Standards can also be – Strategize the application of standards
performance a critical part of ensuring that products are being to buildings. Regulation is needed for new
benchmark that manufactured with climate change in mind. buildings to comply with emission limits
is increasingly and for existing buildings to meet a carbon
stringent over time. Strategies for strengthening and improving performance benchmark that is increasingly
standards include: stringent over time. National building codes
should be based on carbon emissions (instead
– Strengthen standards that have already of energy), be performance-based (instead of
proven effective. Good examples are prescriptive), encourage clean electrification
CO2 limits for new fleet emissions for car and use total life-cycle costs, including the
manufacturers in Europe, renewable portfolio social costs of carbon emissions, in cost–
standards in the United States, and efficiency benefit analyses. Performance standards for
requirements for new buildings and large existing buildings should build on existing
retrofits. These standards are crucial so performance benchmarking and labelling
that value chains of future products and policies by requiring owners to retrofit non-
services can be set up to push down costs compliant buildings. This would significantly
and accelerate adoption. One of the most increase the renovation rate of existing buildings
important areas for improvement is lowering above the currently insufficient 1-2% per year.
not just the carbon costs of manufacturing

Future Focus 2025 43

 2.3 Energy transition
A successful global energy transition needs a
strategic vision and clear ambition from leaders
from government, industry and finance.

The energy sector remains at the heart of climate billion people continue to use destructive
challenges, with energy consumption and and polluting charcoal, wood and biomass
production responsible for more than two-thirds of for cooking.92
global GHG emissions due to strong dependence
on fossil fuels. Energy also continues to play a – Widening gap between action and
central role in enabling economic development commitments. Despite a plethora of climate
and growth, and the secure and reliable access commitments by industry leaders, financial
to modern forms of energy is essential for the institutions and governments, global emissions
realization of the SDGs. For global climate targets are still on an upward trajectory with an
and the SDGs to be met, the clean energy transition increase of close to 5% in 2021 over 202093
towards sustainable and inclusive energy systems as the world economy recovered and policies,
therefore needs great acceleration globally. investments and measures to put emission
on a path to continued decline have not
Key trends include: materialized at a global scale. Scepticism is
growing about the robustness of these pledges
– Sectoral energy transition approaches and and the willingness to implement them.
revolutions. Recognition is growing that a
sector-by-sector energy transition approach A successful global energy transition needs a
New and will be needed because of sector-specific strong strategic vision and clear ambitions from
energy transition challenges, including specific leaders from government, industry and finance.
strengthened
political and technological considerations. With only eight years left to halve GHG emissions
commitments,
to be on track to limit global warming to below
targets and – Increased focus on energy access and 1.5° C by the end of the century, a much stronger
partnerships are modern cooking. Concerns are mounting that focus on the execution and implementation of
required to put COVID-19 has dismantled the steady progress energy transition plans and strategies is needed
the world on a towards affordable, reliable and sustainable now. New and strengthened commitments,
pathway out of energy. The number of people without access targets and partnerships are also required to put
the climate crisis. to electricity increased in 2021, and 2.6 the world on a pathway out of the climate crisis.

Future Focus 2025 44

 Vision 2025

Fostering industrial Innovating low-carbon policy

competitiveness and
sectoral revolutions Policy to support technological change will
continue to play a crucial role in accelerating
In some sectors, decarbonization solutions are the transition and scaling technologies. Even as
mature and readily available (e.g. electricity); in more governments adopt carbon taxes and other
others, the solutions are still emerging (e.g. steel, signals, the market alone will not cut pollution fast
cement, aluminium and aviation). At COP26 in enough. The role of policy is to pick candidates
Glasgow, a sectoral approach to problem-solving and potential enablers to accelerate developments.
was already on display and major commitments These are technological systems that make it
were made. possible for many other sectors of the economy to
cut their emissions, such as hydrogen and carbon
In national conversations, the transformation capture, utilization and storage (CCUS). In every
of fossil-fuel-based infrastructure needs to be technological cluster where progress is fast, such
reframed as an opportunity to increase domestic as wind and solar, batteries, efficient lighting and
industrial competitiveness by creating industries electric vehicles, government policy has played
of the future. Countries that are leading the net- an active role. However, a proper selection of
zero transition are creating incentives for the technological contenders that should be supported
rest of the world to do the same. For example, and the creation of markets for new technologies
announcements of the European Union (EU) while avoiding mercantilism is challenging. Low-
introducing carbon-border tax adjustments have carbon transition policy must focus not only on
sent shockwaves, with countries behind in the stimulating new innovations but must also actively
race for decarbonization fearing impacts on the phase out high-carbon technologies and sectors
competitiveness of their industry exports. through both market incentives and industrial policy.

Emerging Mobilizing finance for transition Managing transition risks and

markets account a just transition
for only one-fifth of
global investment The deep decarbonization revolution will be
more capital-intensive than earlier energy A just transition to a future clean energy system
in clean energy
systems, so the role for finance in the global means one that takes care of the industries
yet for two-thirds
energy transition will be even greater. Finance and workers directly impacted. Further, the
of the world’s needs to be attracted to where it is most transition also needs to be just with regard to
population. needed, particularly to emerging markets, which the countries that are experiencing some of the
account for only one-fifth of global investment greatest impacts of global warming, particularly
in clean energy yet for two-thirds of the world’s those enduring the effects of rising seas. A just
population.94 Access to finance remains a key transition requires compensation and action.
bottleneck due to real or perceived risks, and
the costs of raising capital are often very high.
Nominal financing costs in some economies
are estimated to be up to seven times higher
than in the United States and Europe.95

Future Focus 2025 45

 Pathways to Vision 2025

Scaling technological enablers capital, for example through Net-Zero Equity,96

a new and innovative concept incubated within
the World Economic Forum Global Future
The most important technological enablers for Council on the Energy Transition.
decarbonization are renewable electricity and electric
power. With renewables becoming the cheapest – Leverage Fourth Industrial Revolution
source of electricity in many countries already, energy technologies. Emerging technologies, such
uses in the transport, heating and industrial sectors as AI, have tremendous potential to accelerate
will increasingly switch from direct combustion of and support the global energy transition, can be
fossil fuels to renewable electricity. The expansion used to run energy systems more intelligently
of electricity will require sizeable investments into and efficiently, and can help with the integration
renewable sources like solar and wind, but also in of renewable generators that are more variable
transmission and storage facilities, and in emerging and intermittent.97
digital technologies that can help run energy
systems more efficiently and intelligently. Investment – Help developing countries to leapfrog.
in clean, dispatchable power generation that can Around 88% of the growth in electricity demand
adjust output in tandem with renewable generators between 2019 and 2040 will likely come
that are more variable and intermittent will also be from emerging markets.98 These countries
needed. Important enablers include hydrogen (in have significant opportunities to leapfrog to
particular for some hard-to-abate applications, such sustainable electricity systems and skip the
as high-temperature heat industrial applications) and deployment of emission-intensive electricity
CCUS (for decarbonizing many industrial sectors). infrastructure based on fossil fuels.99
The most
important
Strategies for scaling technological enablers include: – Get global supply chains for critical energy
technological transition materials right. Setting global
enablers for – Address the financing gap in developing standards and supporting innovation to boost
decarbonization economies. It is possible to develop new supply diversity will help to eradicate potential
are renewable and innovative financial concepts to support choke points as global demand for materials
electricity and the energy transition, tackle risk aversion of such as lithium, cobalt and copper continues
electric power. conventional capital and unlock new sources of to increase.100

Future Focus 2025 46

 Forming alliances Enhancing international
cooperation and public-private
The First Movers In every sector, transformative change is led by partnerships
Coalition is an alliances of the most committed governments and
example from hard- firms willing to bear the risk of bringing emerging The transformative changes described here will not
to-abate sectors technologies to maturity and commercial scale. be imposed by internationally agreed action plans
The more selective these alliances, the more or orchestrated simply by setting global targets. It
willing to mobilize
they choose their members strictly based on will require firms collaborating with governments,
the necessary
their ability to contribute to real innovation and for when truly disruptive technologies are created,
investments problem-solving, the more powerful they are and the risks are daunting for private firms to bear
in emerging the easier it is for cooperation to stay credible. them alone. Such public-private partnerships are
technologies, an opportunity for the public sector to provide
thereby creating Strategies for forming alliances include: the foundational capital or financial conditions
a strong demand necessary to support private-sector innovation.
signal. – Demand alliances. To jump-start global
demand, governments and customers who International cooperation will be essential so
need low-carbon products should send that risks can be pooled and bigger markets for
credible demand signals to successful successful innovation and clean new products can
innovators (for example through long-term off- be created. Cooperation can also revolve around
take agreements), thereby helping to mobilize removing regulatory barriers, supporting credible
the necessary investments and decrease policy and creating common standards or joint
costs. For example, corporate demand for declarations. At COP26, bold announcements were
clean electricity, through corporate power made of new partnerships related to switching to
purchase agreements, has the potential to electric vehicles for whole countries, sending a
drive significant investment in renewable credible signal to the world’s suppliers that demand
energy. Alliances like the Clean Energy for new technology will grow substantially.
Demand initiative (CEDI)101 are supporting
countries and companies to enable corporate Strategies for enhancing international cooperation
renewable procurement. The First Movers and public-private partnerships include:
Coalition is another example from hard-to-
abate sectors willing to mobilize the necessary – Build international cooperation on
investments in emerging technologies, compensation for loss and damage.
thereby creating a strong demand signal Providing financial and technical assistance
to innovators and others capable of to the countries that will be most affected by
developing viable technological solutions.102 climate warming will be crucial.

– Align climate and trade policies. Trade and – Realize the geopolitical reality. Deep cuts
investment regimes have a large impact on in emission will not diffuse around the world
how capital and goods flow. For too long, unless the United States, China, the EU and
the worlds of trade and climate have been India find a way to engage and collaborate.
separated. Trade and investment regimes
should be designed in a way that first movers – Scale mature technologies through
do not only bear the costs of going first, but cooperation. Examples include demand
also reap the benefits of bigger markets and alliances, removal of regulatory barriers and
more robust competition. common standards that can help create
larger global markets, and incentives to mass
production and deployment (for example,
common standards for electric vehicle plugs).

Future Focus 2025 47

2.4 Nature-based solutions
More than half of the world’s GDP is
dependent upon nature and its services and
is therefore at the risk of severe disruption.

According to the International Union for and societal goals need to be addressed
Conservation of Nature (IUCN), one-quarter simultaneously to feed the growing population.
of flora and fauna species are at the risk of
extinction. However, presuming that protecting, – Greater pressure on the public sector to
restoring and safeguarding nature is merely an remove and repurpose harmful subsidies.
environmental question could not be farther Two per cent of global GDP is estimated to be
from the truth. The World Economic Forum spent on environmentally harmful subsidies.
New Nature Economy Report series shows There is an urgent need for intervention
that more than half of the world’s GDP is so that taxpayer funds are not invested in
dependent upon nature and its services and activities that harm public goods. This has
is therefore at risk of severe disruption.103 huge implications for national budgets where
it is not only about increasing the budget
Three key trends are driving the agenda for nature- for environmental outcomes, but defunding
based solutions agenda: harmful streams, such as subsidies on
fossil fuel, overuse of chemical fertilizers
– Greater integration of climate change, and pesticides and water contamination.
biodiversity and land restoration goals.
Nature-based solutions may provide a third – Greater social equity and environmental
of the solutions to mitigate climate change; outcomes. Global resource extraction has
this prioritization strengthens when looking tripled over the past 50 years, yet 840 million
at climate adaptation particularly in poor people still lack access to electricity.104 Those
countries with underdeveloped infrastructure. who least benefit from modern lifestyles
Companies will seek to invest in the protection suffer the greatest impact of climate change
and restoration of natural assets to compensate and nature loss. Clashes and civil unrest will
for their net-zero transition pathway shortfalls. ensue unless these trends are reversed and
Food and agriculture systems will especially issues of social and racial equity are put at
provide a space where multiple environmental the centre of the environmental movement.

Future Focus 2025 48

 Vision 2025

Unlocking private-sector option. Lessons can be learned from the Indigenous

and local communities that comprise less than 5%
investment in nature of the world’s population but protect 80% of world’s
biodiversity.108 Companies from across business
A nature-positive pathway could generate an sectors are working with initiatives like the Tropical
estimated $10 trillion in new annual business Forest Alliance and 1t.org to halt commodity driven
value and create 395 million jobs by 2030.105 deforestation and protect and restore forests,
To capture the $10 trillion available in all nature- respectively. Since the launch of 1t.org’s global
positive business opportunities by 2030 would pledge process in September 2021, over 30
require $2.7 trillion per year of redirected funding companies have committed to conserve, restore and
through to 2030. Public-sector funds alone will not grow more than 3.6 billion trees in over 60 countries.
be enough. Private-sector financial flows are also
needed to create better outcomes for nature.106
Enhancing policy coherence for
To unlock private-sector investment in nature,
progress needs to be made to:
environmental outcomes

– Defund nature-negative activities, particularly in More than $700 billion a year is needed to reverse
commodity supply chains the global biodiversity crisis.109 However, conflicting
incentives in governments’ fiscal, economic,
– Increase financial flows for nature-based solutions finance, trading and development cooperation
policies are a serious concern. For example,
– Value nature for its intact habitats and according to a report from the United Nations
ecosystem services Development Programme and the Food and
Agriculture Organization, almost 90% of the $540
billion in annual farming subsidies are harmful.110
Living in harmony with nature
Signs indicate that society may be locked into
a system that put us on a path that is nature-
Earth Overshoot Day marks “the date when negative. At COP26 in Glasgow, nine multilateral
A nature- humanity’s demand for ecological resources and development banks “launched a joint statement
positive pathway services in a given year exceeds what Earth can outlining actions that they will take to mainstream
regenerate in that year”.107 In 2021, this day was nature into their policies, analysis, assessments,
could generate
29 July and it is arriving earlier every year, which advice and assessments in line with their
an estimated $10 means current populations are borrowing from respective mandates”.111 By 2025, increased
trillion in new future generations and jeopardizing their right to cross-sectoral policy coherence and alignment
annual business an environmentally safe and sustainable life. of public- and private-sector financing start
value and create to create environments that unlocks funding
395 million jobs Awareness has increased recently in all sections of to support nature-positive approaches.
by 2030. the society that business as usual is no longer an

Future Focus 2025 49

Pathways to Vision 2025

Implementing nature-positive – Adopt nature-positive strategies. Nature-

positive strategies should be a normal part of
business models decision-making, in that they are understood to
enable greater competitiveness and resilience.
Strategies for operationalizing this pathway Over the past decade, the MSCI Emerging
include: Markets ESG Leaders Index outshone the
broader MSCI Emerging Markets Index, with
– Understand, value and disclose impact annualized gross returns of 6.3% versus
and dependency on nature. This will help 3.0%, a clear reflection of the profitability
prevent risk mispricing and inaccurate capital of ESG investing.113 Moreover, the 2016
buffers to both short-term risk events and Cone Communications Millennial Employee
more chronic impacts. Nature-related risks Engagement Study found that most millennials,
can be incorporated within existing ERM who will make up 75% of the job market by
and ESG processes, investment decision- 2025, will not take a job with a company that
making, and financial and non-financial lacks social responsibility values.114
reporting.112 Many large companies have
joined the Taskforce for Nature-Related – Lead and innovate to fast-track revenue-
Financial Disclosures to help build out a generating investments in nature. Corporates
framework like climate-related financial risks. can shift their procurement rules and supply

chain investments to value nature-positive 2021.117 The private sector and corporate
opportunities over harmful ones. Banks and and financial organizations all have a critical
investors, including multilateral development responsibility to increase investments in nature.
banks, can decline unsustainable business
while providing capital, de-risking investments – Join existing initiatives. For much of these
and creating asset classes for nature-positive global commons’ challenges, there is no level
projects.115 Deforestation, for example, can be a playing field or clear rules of the game. Solving
result of corporate supply chain and procurement for these challenges requires greater public-
decisions but also of financial institutions’ private dialogue and precompetitive collaboration
decisions.116 Approximately $238 billion in credit among committed actors. The success of
was provided by banks and other financial proposals such as payment for ecosystem
institutions to deforestation-related commodity services, high-integrity carbon markets and
companies between January 2016 and June deforestation-free supply chains depends on

Future Focus 2025 50

 multistakeholder collaboration. Businesses resources, making them cheaper and more
should therefore look for a systems agenda competitive than nature-positive investments
by working together for a change that runs in the short term.120 This must change.
across the industry and economic segments.
For example, World Economic Forum initiatives – Price externalities and support blended
like the Tropical Forest Alliance and 1t.org. finance. Formal pricing mechanisms for
carbon and ecosystem services, and blended
Creating an enabling policy finance approaches to crowd-in private-sector
investment need to be created. For example,
environment the Inter-American Development Bank partnered
with the Global Environment Facility to establish
Strategies for operationalizing this pathway include: a $5 million Climate-Smart Agriculture Fund
for Latin America and the Caribbean. The fund
– Enact policies to protect nature and offers risk-tolerant capital with long tenors to
reform subsidies to value and provide encourage private investment by cushioning
public goods. In most cases, current early losses and providing a concessional
economic and financial norms and institutions tranche of resources.121 Another example can
do not consistently value and create a be seen in South Africa, which introduced a
positive financial return for nature-positive first-of-its kind biodiversity tax incentive into its
investment.118 According to a United Nations legislation. The tax incentive allows landowners
2021 study, of the $540 billion agricultural such as farmers or communities, who commit
subsidies per year (15% of total agricultural to setting aside and managing their land as
production value), 87% is price-distorting protected areas, to receive a fiscal benefit. It is
and environmentally and socially harmful.119 estimated to contribute close to 10% additional
This means that, ultimately, environmentally finance in closing South Africa’s biodiversity
harmful actions are often supported with public finance gap.122

Future Focus 2025 51

2.5 Net-zero transition
Transforming net-zero commitments
into tangible company-level action with
transparent metrics that can be monitored
and evaluated has never been more urgent.

With only eight years to achieve a 50% emission – Radical collaboration is essential to close the
reduction target by 2030, transforming net-zero 2030 ambition to implementation gap. Current
commitments into tangible company-level net-zero measures are not matching the speed
action with transparent metrics that can be and scale of the climate crisis and continuing
monitored and evaluated has never been more with business as usual will not move the needle
urgent. COP26 in Glasgow saw a groundswell fast enough. Delivering critical 2030 milestones
of corporate net-zero commitments and over will require radical collaboration, sequenced
1,000 companies have logged 1.5° C-aligned interventions between industry, government,
targets.123 Yet business leaders across all sectors finance and technology and a tangible pipeline
are struggling to demonstrate tangible results of bankable projects aimed at scaling up critical
and measuring impact against targets through components of the transition, including transition
accountability mechanisms. fuels, infrastructure and production facilities.

The three emerging trends to consider when – Investment must rapidly scale up. Clean energy
advancing corporate action on net zero are: investment must triple by 2030, to $4 trillion.124
At the same time, emerging technologies must
– Increasing accountability is critical. be brought to market and significant R&D funds
While leading companies have adopted are required for these technologies to reach
net-zero targets, they are as yet unable to commercialization.
elaborate credible plans for transitioning
to net zero. In the absence of plans and The World Economic Forum Global Future Council on
transparent mechanisms for tracking progress, Net-Zero Transition has identified two critical thematic
corporate commitments will continue to face priority areas to address the tipping points and
scepticism and greenwashing concerns. advance solutions to reach net zero by mid-century.

Future Focus 2025 52

 Vision 2025

Increasing net-zero accountability – Targets: Uncertainties include the availability

of technologies, abatement costs, consumer
behaviour and perception, and a lack of data.
Just before COP26, the Intergovernmental
Panel on Climate Change released its latest – Collaboration: Value chain collaboration,
assessment report, which warned about getting supported by government policy, is key to
closer to a series of climate breakdown tipping address value chain emissions. Value chains
points. Following COP26, a range of analysis are often cross-border, therefore a systemic
was produced that illustrated the importance approach is needed. Coalitions such as the
of implementing the pledges made. The Global global Race to Zero campaign can help.
Future Council on Net-Zero Transition will focus
on delivering a framework for business leaders to Standardizing accounting and reporting
follow and developing a common set of net-zero
metrics that may be integrated into corporate – Data harmonization and standards: No
governance models and ESG principles. standardization or common metrics across
industries and value chains exists. Harmonization
Defining net-zero pathways is necessary to enable the flow of information
and the measurement of Scope 1, 2 and 3
Data – Strategy: Corporate net-zero strategies must be emissions, without double counting.
harmonization tailored to their industry and region of operation.
Certain industries have more complicated value – Accounting and reporting: Climate accounting
is necessary to
chains and operations that are highly energy and reporting is voluntary in most countries.
enable the flow of intense with few lower carbon alternatives. Collecting emissions data, summarizing findings
information and the Hence it is not always easy to define the net- and reporting their GHG inventories can be
measurement of zero pathway. At the same time, countries challenging for actors with long or complex
Scope 1, 2 and 3 face similar challenges as they need to assess value chains, given varying data quality and
emissions, without impacts on the economy, job security and double counting.
double counting. geopolitical aspects.

Future Focus 2025 53

 Net-zero action Choreographing the net- – 900,000 zero-emission trucks on European
in the hard-to- roads with at least 290,000 charging points
zero transition and 2,500 refuelling stations
abate industry
sectors that
Net-zero action in the hard-to-abate industry – Over 300 sustainable aviation fuel (SAF)
account for 30%
sectors that account for 30% of global GHG plants (50 of them in the EU) producing
of global GHG
emissions is critical to lowering emissions. Existing approximately 30 million tons of SAF to
emissions is institutional frameworks and processes are not achieve a 10% share in global jet aviation
critical to lowering adapted to the scale and urgency of the challenge. fuel supply
emissions. To achieve the step-change needed, collaborative
choreography must bring industry, government, – 10 green corridors or approximately
financial institutions and other stakeholders 100 deep sea zero-emission propulsion
together around tangible interventions. The Council ready ships to ensure zero-emission fuels
has identified two key challenges in this area: comprise 5% of international shipping
fuels and 15% of domestic shipping fuels
A clear vision of decarbonization
2030 milestones A net-zero choreography

– For action to be efficient and effective, a – Creative thinking can identify the collaborative
more granular and clear-eyed understanding models for radical action and collaboration
of the scale of the short-, mid- and long- to respond urgently to the crisis.
term goals industry sectors must deliver
by 2030 is necessary. This vision will shift – Sectoral transition strategies and plans must be
the conversation and focus on the scale of used as a basis for a pipeline of bankable net-
interventions and the choreography required zero projects.
from leaders of industry, governments, financial
institutions and other stakeholders. – Sequenced interventions by government,
industry, finance, technology and other key
– The Mission Possible Partnership has identified stakeholders are needed to mobilize the
critical industry 2030 milestones:125 green capital and technologies required
for bankable net-zero projects.
– 70 (near) zero steel plants producing
280 metric tonnes of steel annually

Future Focus 2025 54

 Pathways to Vision 2025

Integrating strategy, and address emissions across their value

chain. Both countries and companies need to
measurement and reporting establish long-term and interim targets that are
ambitious and comprehensive. Targets need to
Immediate action must be taken to limit global be science-based, for example via the Science
warming to below 1.5° C. This can only happen Based Targets initiative.
when climate action is integrated in all business
and government decisions. – Report and disclose emissions. The need
has increased to monitor and track progress
Strategies for operationalizing this pathway include: against net-zero commitments, including
effective carbon accounting, implementation
– Set the strategy. Countries are encouraged plans and management strategies. Data
to update their Nationally Determined disclosure is key to ensure staying on track,
Contribution, alongside long-term goals. for example using guidelines from the Task
Companies, on the other hand, need to include Force on Climate-related Financial Disclosures,
Scope 3 emissions in their climate strategies and via CDP.

Ambitious Synchronizing action to – Strong demand signals for greener products

companies should support projects, policy,
put pressure – Supply scaling to meet that demand
on industry demand and finance
– Public and private finance to facilitate the
bodies and other
In the global choreography efforts, five crucial transition to cleaner supply
organizations to
establish sector- areas must be considered: the supply side,
demand side, finance, policy-making and a just – A policy framework that mainstreams that
level targets for shift from niche, premium markets to the
transition. Value chain collaboration supported
climate action. wider economy and brings in or trains
by government policy is key to address value
workers with the skills and protections
chain emissions. Ambitious companies should
needed to deliver the transition, while
thus put pressure on industry bodies and other
caring for those unable to transition
organizations to establish sector-level targets
for climate action. Leading companies can also
– Join initiatives that address these challenges.
join forces with cross-sector policy groups to
Some efforts, such as the Race to Zero
change the wider context for decarbonization Campaign and the First Movers Coalition,
across value chains. Common policy are partnerships with governments, while the
recommendations provide a strong message Mission Possible Partnership supports sector-
that business wants support to decarbonize.126 level targets and cross-industry collaborations.

Strategies for operationalizing this pathway – Spread the message. Becoming a climate
include: leader in the region or industry, spearheading
initiatives and supporting projects that lead to a
– Coordinate movement across each of competitive advantage towards the transition
these levers:127 are key.

Future Focus 2025 55

2.6 SDG investment
The goals of the 2030 Agenda require
concerted global stakeholder cooperation.

Two years into the decade of delivery, the – Integration of just-transition logic in
financing gap that must be closed to achieve the development and climate finance. While
SDGs remains large. Indeed, according to the the net-zero transition has been the main
Organisation for Economic Co-operation and catalyst for investment and sustainable and
Development (OECD), the global financial impact development finance, the COVID-19 pandemic
of COVID-19 has caused the SDG financing gap to has spurred greater emphasis on ensuring a just
grow from $2.5 trillion annually to $3.7 trillion.128 At and inclusive transition.
the same time, the pandemic has also highlighted
the ominous and uncontrollable power of nature. – Public-private cooperation and financing
As a result, the past two years have represented roadmaps. The private sector continues to
a milestone in the financial world, witnessing the increase investment and financing in the SDGs.
flourishing of sustainable finance that is becoming To scale this investment to reach the trillions
increasingly mainstream. While there is still required to bridge the financing gap, the public
time to meet the Agenda 2030 for sustainable sector has stepped in to facilitate and de-risk
development, some trends that are shaping the these investments by providing non-financial
SDG investment ecosystem are encouraging, while interventions, blended finance and clear
others are less so. financing pathways.

– SDG mainstreaming. Though ESG metrics are The fragmentation of efforts and activities has been an
becoming embedded in portfolio management enduring feature of development finance. Only through
and financial decision-making, the SDGs are a concerted, global effort of cooperation among
increasingly seen by a few categories of investors all relevant stakeholders can the goals of the 2030
as a key measure of investment impact. Agenda for Sustainable Development be achieved.

Future Focus 2025 56

 Vision 2025

Mobilizing private capital for By 2025, there is greater understanding about

climate change and social development being
emerging markets two global, intertwined and equally important
challenges: solving one without addressing the
The SDGs are intended to embody a global vision other will fail to deliver an economy and a society
for a sustainable, inclusive and equitable world. that works for all. Investor strategies to transition
The amount of investment required to meet such to a more resilient and sustainable economy
an ambitious objective is substantial. A shift of 1.1% incorporate the full range of ESG dimensions
of the $379 trillion assets managed globally towards of responsible investment, supporting an
the SDGs could bridge the $3.7 trillion financing inclusive and just framework for all people and
gap.129 Public finance alone cannot solve the issue. communities.131 The SDGs offer a solid framework
The private sector will be critical to the realization to incorporate these principles into their climate
of the SDGs. and transition strategies.

By 2025, the private sector should increase efforts to

fill the investment gap needed for meeting the SDGs, Harmonizing disclosure and
deployed closer to the speed and scale required.
This mobilization is also not happening where it is
measurement
most needed: in emerging and developing countries.
Concerted effort is made by all stakeholders to As investors turn the SDGs into a new asset class,
address key issues undermining the SDGs:130 the resulting plethora of impact measurement
systems and reporting tools has created
– The risk profile of these economies often fragmentation, lack of transparency and
A shift of viewed unfavourably by investors due to inconsistency. According to an analysis conducted
1.1% of the $379 macroeconomic, institutional and political by the World Economic Forum Global Future
trillion assets factors, and information asymmetry exacerbates Council on SDG Investment, only 3 of the 15 most
managed globally this situation. prominent impact measurement and management
towards the SDGs frameworks are mapped to the 17 SDGs. This
– Many large institutional investors perceive limited situation can expose companies and investors to
could bridge
investments in climate-vulnerable economies, accusations of green- and sustainability-washing.
the $3.7 trillion
for example in small island developing states.
financing gap. By 2025, nascent efforts to create international
– Transparency and clarity around projects and standards, such as the newly created International
outcomes are lacking. Sustainability Standards Board, the development
of a European taxonomy for sustainable activities,
or the G7 Impact Taskforce, provide clearer
Integrating social factors into indications and definitions for investors and
decision-makers, setting the foundations for the
climate and transition finance sustainability architecture that will accelerate the
transition to a net-positive and just economy. This
The climate and energy transitions have been architecture respects the diversity in the global
the main focus of sustainable and development markets and does not channel money away from
finance since the adoption of the Paris Agreement where it is most needed. To ensure this, regulations
on climate change in 2015. Similarly, the “E” in should avoid restrictive propositions that impede
ESG has been the focus of mainstream investors the flow of capital towards emerging markets or
in search of sustainable investments. As a result, measurement systems that favour developed
other SDGs such as SDG 1 (no poverty), SDG 2 countries over developing ones. At the same time,
(zero hunger), SDG 8 (decent work and economic regulations encourage and foster investments
growth) or SDG 10 (reduced inequalities) have that generate financial additionality and support
received relatively less attention, and less funding. transition efforts.

Future Focus 2025 57

Pathways to Vision 2025

De-risking emerging and private investors.132 While development finance

institutions and multilateral development banks
developing countries for have played a strategic role in the development
private-sector participation pathways, they have been slow in adapting
to changing markets and contexts and may
To unlock greater capital for sustainable crowd out greater private-sector involvement.
development in emerging and developing However, they continue to and can increasingly
economies, it is imperative to address the real play a key role in lowering risk and crowd in
and perceived risk concerns of the private sector. greater private-sector involvement.
Adopting a broader, more comprehensive and
macro approach towards risk is needed by all – Improve non-financial de-risking measures.
actors across the investment value chain. Risk mitigation predominantly has been
understood in the deployment of financial
Strategies that can serve this purpose include: risk-sharing instruments, such as guarantees,
first loss facilities and insurance, to transfer
– Leverage blended finance. The use of part of the risk premium associated with
catalytic capital from public or philanthropic specific transactions. However, risk mitigation
sources to increase private-sector participation needs to be understood beyond financial risk
has been in place for a certain time. However, mitigation products, towards a broader concept
the actors involved have been slow in adopting of non-financial risk mitigation measures and
the necessary changes required to bring it to in improving overall investment climates for
scale and make it a mainstream approach for increased private-sector participation.133

Creating pathways for market players to jointly define the actions

required to increase the sources of capital
SDG investment needed to finance meeting the SDGs through
an impartial, multistakeholder approach. The
The trillions needed to finance the 2030 Agenda SIP initiative can support market players to:
must bring together public- and private-sector
finance, but real and perceived risks to investment 1. Outline risks and barriers preventing
prevent greater private-sector involvement in greater coherence and investment in the
emerging and developing economies. This is sectors or value chains where greater
partly due to the lack of clear strategies and sustainable investment is needed
pathways that define and highlight the solutions,
actors and actions needed to address both the 2. Identify the policies, innovative solutions
non-financial and financial risks and barriers that and financing mechanisms to build a more
currently prevent greater SDG investments. coherent and collaborative SDG investment
ecosystem in these sectors or value chains
– Join the Sustainable Development
Investment Partnership (SDIP). The SDIP 3. Decide and agree collaboratively on the “who
has developed the Sustainable Investment and what” actions to be taken to complete
Pathways (SIP) initiative to bring together the formulation of an actionable SIP
global and local public- and private-sector

Future Focus 2025 58

 Investors should Raising ambition through Actionable recommendations include:
adopt impact public-private cooperation
management – Promote an SDG investing label. Using this
principles, and partnerships label would allow asset allocators to know that
they are part of the global movement to invest in
including impact
Commitments and sector-specific alliances calling solving key global challenges but also to leave
measurement and
for a more sustainable-oriented financial sector them discretion on which of the SDGs to focus on.
disclosures, and have thrived in recent years. The Global Future
encourage investee Council has been working with international – Overcome the perception that SDG investing
companies, organizations and private-sector actors to launch does not generate returns. Publishing
projects and a new call to action towards the SDGs: the reliable data on commercial returns from
funds to report SDG Club. This call to action aims to provide SDG investing, including the track-record of
on harmonized practical recommendations to remove current development finance institutions and private
impact metrics. obstacles and bring together disparate labels, impact investors, will make clear that impact
such as ESG and impact investing, with the and returns are not incompatible strategies.
goal of helping asset allocators make the right
decisions on the “how and what” of investing in – Adopt impact management principles.
the SDGs. The initiative seeks to have 1% of global Investors should adopt impact management
investable assets committed to SDG investing, principles, including impact measurement
a number that could bridge the SDG gap. and disclosures, and encourage investee
companies, projects and funds to report
on harmonized impact metrics, so that
asset allocators can obtain improved data
and compare across their investments.

Future Focus 2025 59

2.7 Sustainable tourism
Tourism stakeholders can redesign
sustainable destinations and practices
across services and businesses.

Although the tourism industry has been hit hard both the inherent tourism and economic value
by COVID-19, its hallmark resilience is expected of protected areas and natural assets will be
to foster its recovery. The prior decades’ tourism crucial to preserving the long-term value of
boom has challenged its sustainability, with tourism to business and customers alike.
overcrowding and the carbon footprint of flying
remaining top public criticisms. – Climate change action. Global industry
has seen raised awareness and acceptance
In the wake of the COVID-19 pandemic, key trends of the urgency of climate action. Without
that have amplified the need for swift and collective adequate action and investment, climate
action include: change could disrupt the travel and tourism
sector as it becomes particularly vulnerable
– Equitable and sustainable destinations. to climate impacts.
Overcrowding, mismanaged growth and the
degradation of natural and cultural assets As the tourism industry recovers, stakeholders
harmed the tourism sector prior to the can redesign sustainable destinations and
COVID-19 pandemic. Furthermore, benefits practices across services and businesses. The
from tourism were not adequately distributed to World Economic Forum Global Future Council
local economies and across the value chain. on Sustainable Tourism evaluates the conditions,
metrics and policies needed for the success
– Value of the blue and green economy. Travel of progressive business models that place
and tourism investments and behaviours have sustainability at the core and provide expert
not adequately accounted for the value of the guidance to the broader sector on how to build
natural environment. Clear quantification of forward better.

Future Focus 2025 60

Vision 2025

Ensuring equitable and Consumer behaviour can drive demand and

shift practices in travel and tourism, but a
sustainable destinations lack of transparency and sufficient knowledge
exchange within the industry hinders coordinated
Over the past 50 years, the number of international progress. Tourism organizations often struggle
travellers grew from 200 million to 1.5 billion.134 to determine which benchmarks or metrics to
As a result, many locations have struggled with follow, and consumers have difficulty navigating
overtourism, while others have struggled to attract and understanding relevant certifications. Smaller,
visitors and their capital for local conservation and locally-based operators or tourism businesses are
local communities. Furthermore, tourism marketing not well-enough resourced to adopt practices,
and the rise of social media have only served to achieve certification or be appropriately compliant.
further stretch carrying capacity of many of the most
popular tourist destinations. Tourism marketing and A rising demand for better tourism practices
management therefore must evolve to enable a and services could be leveraged to build
sustainable future, with some conditions from the more equitable and sustainable destinations,
COVID-19 crisis being conducive to an acceleration capturing capital and value accordingly.
of sustainability practices and outcomes.

Investing in the blue and green not been accurately measured or considered in their
totality. Protected areas can provide a five-to-one
economy return on investment in direct revenue and have
a variety of benefits that are not captured by the
The tourism sector has long depended on the market. Furthermore, there is potential for nature-
resources, beauty and economic activity based solutions to drive change in tourism as well
associated with natural environments. Coastal, as contribute directly to broad economic efforts to
forest and mountain environments have served as decarbonize and align with the SDGs. According
popular tourist destinations, and their popularity to the EU Blue Economy Report 2021, in the EU27
has only increased during the pandemic where alone, the blue economy provides 2-3% of total
customers have sought out nature-based locations employment and 1.5% of GDP, excluding indirect
and experiences. or induced income and employment. New sectors
such as blue biotechnology, algae production
Unfortunately, the true value and contribution of the and ocean renewable energy are expected to
blue and green economies to and from tourism have generate new green jobs and markets.135

Future Focus 2025 61

 Aligning the travel and tourism industry was undertaken for COP26, which
delivered a broad framework for achieving
sector with the climate ambition net zero in the sector.136 Several corporations
have now committed to net zero and signed
Achieving net zero requires decision-making from up for science-based targets, but this remains
the highest levels, a coordinated plan across a small fraction of the entire supply chain
the public and private sectors, and appropriate and does not extend to many SMEs.
financial and supporting mechanisms to achieve
the necessary transition. Given the diversity of By 2025, all tourism stakeholders commit to
the sector, however, net-zero pathways differ science-based targets and design their own
by industry vertical. Foundational work by the net-zero pathways.

Pathways to Vision 2025

Aligning on global principles tourism behaviours. These can be showcased

to enable appropriate shifts in business, policy
for sustainable destinations and consumer choices.138

To ensure a coordinated response that prioritizes – Reshape public policy. The crisis offers
the rebuilding of the sector in an equitable and a reset opportunity; many destinations are
resilient manner, significant alignment among considering taking action now or accelerating
stakeholders across the ecosystem will be required. their plans for long-term sustainable destination
management and the Global Future Council is
Strategies for operationalizing this pathway include: working on tools and guidance for experts.

– Develop a shared vocabulary. Design a

coherent set of principles for sustainable Making the case for the blue
destinations that will drive the behaviour of
The inherent
businesses, governments and travellers alike.137
and green economy
economic value
of the blue and – Demonstrate best-in-class innovations. The inherent economic value of the blue and green
green economies is Valuable examples already exist of cities, regions economies is invaluable across geographies and
invaluable across or countries that have adopted practices that industries, but the need to highlight and stress
geographies preserve culture and natural resources, calibrate the opportunity to apply blue and green economy
and industries. services and assets, and incentivize responsible principles to the tourism sector is still great.

Future Focus 2025 62

 Nature-based Nature-based solutions, while addressing some of journey of aligning with science-based targets,
solutions, while the most pressing biodiversity and climate change it is difficult to determine where to start, which
addressing some of challenges, can drive tourism demand and revenues. initiatives to prioritize, and how to measure
the most pressing Practical guidance from industry leaders, such progress and impact. It is therefore crucial for
as the Global Future Council, could broaden and experts and leaders in the sector to highlight best
biodiversity and
accelerate the true valuation of natural assets and practices, socialize well-respected methodologies
climate change thus mobilize and scale the necessary investment and mechanisms for measurement, and facilitate
challenges, can into blue and green economy innovations. transparency and accuracy in reporting.
drive tourism
demand and Strategies for operationalizing this pathway include: Strategies for operationalizing this pathway include:
revenues.
– Shape sustainable consumer behaviours. – Gather more commitments towards net-zero
Travellers demand more sustainable tourism and metrics reporting. Experts can serve as
yet have a hard time knowing what to expect champions for a net-zero future by encouraging
from businesses or what actions will really the proliferation of efforts and commitments
have impact. The Global Future Council to climate action by many stakeholders.
is developing a set of behaviour changes, Existing work on metrics and science-based
based on its work on destination principles. targets can be built upon to facilitate progress,
consistency and transparency.
– Provide practical guidelines for investment
decision-makers. The business case for – Highlight the role that tourism can play in
investment in blue and green economy initiatives building resilience in destinations. As more
for the travel and tourism sector should be businesses commit to reducing their carbon
articulated across stakeholder groups.139 footprint or reaching carbon neutrality, tourism
can play a large role in valuing nature-based
– Advance global sustainability initiatives carbon offsets and other benefits they bring
through tourism. The global reach and to destinations. This also intersects with work
importance of the tourism industry can done by the Friends of Ocean Action and its
be leveraged to further the application of Mangroves Working Group.
blue and green economy principles.
– Emphasize public-private collaboration to
accelerate the energy transition. Collaboration
Advancing pathways to net zero across various tourism bodies should be
encouraged, and impactful collaborations across
the value chain that can accelerate action can
The development of clearly defined pathways to be identified or highlighted. Work done by the
net zero and measurement to track progress are World Travel & Tourism Council, the Science
key to shifting the sector’s trajectory and avoiding Based Targets initiative and the UN High-Level
aggressive regulation down the track. However, Champions serve as powerful foundations from
for many organizations newly embarking on a which to build such cohesion and collaboration.

Future Focus 2025 63

3 Society
3.1 Education and skills
The skills required to thrive in the post-COVID-19
economy include innovation and creativity,
global citizenship and civic responsibility,
and interpersonal and intrapersonal skills.

COVID-19 highlighted gaps in learning needs and – Unequal access to skills development.
presented an opportunity to reassess them. An As the global pandemic continued to force
especially high value is now being placed on human- learning to shift online, new modalities of
centric skills that cannot be easily automated, and learning were being piloted and disseminated,
there is newfound urgency to improve access to but uneven digital access further exacerbated
skills for an increasingly automated world. The existing education and skills gaps between
Great Resignation trend resulted from workers low- and high-resourced communities.
seeking greater meaning and value from their
jobs, and now employers struggle to find talent. – Limited recognition of skills pathways.
Online credentialing, apprenticeships and
Three key trends are driving the need for a new non-formal learning exist, yet these pathways
education and skills agenda for the post-pandemic are not broadly and equally recognized by
economic recovery: employers. The lack of systemic recognition
of alternative learning pathways became a
– Unemployment and widening skills gaps. challenge in the pandemic context, where
Employers struggle to find talent with the individuals required more flexible and rapid
right skills due to the Great Resignation, new forms of skilling to be able to keep pace
immigration restrictions and limited labour mobility. with changing labour-market demands.
Additionally, reskilling and upskilling efforts have
not kept pace. Competition among employers Actors need to rapidly address these short-term
for talent has increased bargaining power for challenges to create resilient systems to meet the
employees, and churns in job markets further employment needs of individuals, businesses
exacerbate skills gaps in the labour market. and governments.

Future Focus 2025 65

 Vision 2025

Developing new economy skills prioritize teacher workforce training and development
as an enabler of high-quality education systems.

The skills required to participate and thrive in the

post-COVID-19 economy include innovation and Measuring new economy skills
creativity, global citizenship and civic responsibility,
digital literacy, and interpersonal and intrapersonal
skills.140 The 2030 vision in education and skills As individuals gain and hone new economy skills,
systems is that every individual, regardless of stakeholders will need to track these skills to
background, location or demographic, can access make informed decisions about human capital
the tools needed to hone their skills. This has management. Better data are needed to be able to
proven to be a challenge since the COVID-19 match people to jobs and learning opportunities,
pandemic has forced learning to shift online, casting and to ensure that learning ultimately leads to
a new light on the digital divide and driving a further employment. Several indicators must be measured,
gap between developed and developing economies. including the mastery of these skills across
different demographics, and gaps in access to
Better data are Accelerating the vision within this domain will require skills training and development. Furthermore,
targeted training and development for educators to new mechanisms are needed to assess the
needed to be able
support the right kind of learning; curricula developers relevance of curricula to labour-market needs.
to match people to
to strategically integrate new economy skills into
jobs and learning learning; workplace-learning opportunities to be made The Vision 2025 is of data collected from
opportunities, widely available; and all stakeholders – including assessment, and measurement is used strategically
and to ensure educators, employers, human resources technology, to create direct lines between job seekers and
that learning education technology, employment offices and employment opportunities. New methods of
ultimately leads others – to align on skills pathways. To ensure that assessment must be applied to measure new
to employment. these goals are met by 2030, policy-makers must economy skills, and the development of new

assessment mechanisms often takes many years to new skills and new approaches to learning.
design and implement. Thus, a reasonable priority Innovating approaches will require fundamental
for the vision would be to – in the first instance – shifts in norms and attitudes related to learning.
measure gaps and inequities in access to skills
development across different demographic groups. The vision is that individuals proactively engage
in lifelong learning to develop their new economy
skills. Enabling this vision will require these skills
Mainstreaming new economy to be valued by employers and governments.
Stakeholders will need to signal demand for new
skills economy skills, develop and recognize alternative
pathways to employment, and invest in targeted
Education systems have long been embedded in skills development and deployment for groups with
traditional ways of learning, which often include inequitable access to learning and jobs. While all
direct instruction of well-established subjects, of these can be accomplished by 2030, a priority
such as mathematics, reading and writing. Yet for the Vision 2025 should be to develop and
these systems could be complemented with implement alternative pathways to employment.

Future Focus 2025 66

 Pathways to Vision 2025

Providing education workforce – Create educator-owned lifelong learning,

training and development accounts.
training and development to Along with a centralized database of diverse
support new economy skills opportunities for teacher development, these
development accounts would enable educators more flexibility
and ownership over their learning needs.

A survey of industry employers shows that

the core set of skills required for employment Recognizing alternative and work-
in the education sector is set to change by
41% by 2025.141 Another study indicates
based pathways to jobs
that wide-scale investment in upskilling the
education sector alone could add 5.6% (nearly Many mechanisms for developing new economy
$400 billion) to global GDP.142 The return on skills, including online learning and short-cycle
investment in teacher training is multiplied credentialling, have emerged in response to the
if focused on reinforcing the education growing demand for learning and reskilling. These
workforce to support new economy skills mechanisms promise to democratize learning,
development for the next generation of talent. increase access to a broader set of individuals and
Furthermore, investing in teacher training and provide rapid solutions to learning needs. Although
development ensures that education systems apprenticeships and other forms of work-based
continue to be resilient through any future learning have proven to be effective pathways to
unforeseen social and economic shocks. employment, these strategies have not been widely
adopted across economies and are not always
Strategies for operationalizing this pathway recognized by employers, which places the burden of
include:143 risk on individuals as they decide whether to invest in
these alternative pathways.144
– Assess skills gaps in the education
workforce. This will support robust To encourage individuals to engage in lifelong
workforce planning within this sector, learning of new economy skills and take advantage of
including a combination of qualitative alternative learning solutions, these learning pathways
and quantitative approaches to must be recognized by governments and employers.
understand specific teacher needs.
Strategies for operationalizing this pathway include:145
– Provide opportunities for educators
to observe how skills are deployed – Help businesses and governments create
in work contexts. These opportunities and formalize work-based learning.
Wide-scale
would enable teachers to create learning Government subsidies can facilitate and
investment in environments that more closely mirror the encourage the creation of these opportunities.
upskilling the future of work. This will require specific
education sector partnerships between schools and local – Consider candidates with skills-based
alone could employers and could be carried out through certifications, where applicable. The
add 5.6% to business commitments to ESG standards. candidates to consider particularly are those
global GDP. engaging in mid-career transitions.

Future Focus 2025 67

 Tracking the – Include skills certifications and micro with disabilities, ageing populations, and those from
development and credentialling in national qualifications ethnic, racial and religious minority groups, can
deployment of new frameworks. support an equitable economic recovery. Having
economy skills these data points can empower stakeholders to
across traditionally – Require work-based learning in national think critically about the targeted efforts needed
curricula. to ensure equal access to new opportunities
under-represented
created in the post-COVID-19 economy.146
and minority
– Co-design work-based and online learning
groups can support assessments. Supporting skills development Strategies for operationalizing this pathway include:147
an equitable aligned to labour-market needs is required.
economic recovery. – Create skills passports at the company
– Develop signposting tools to help individuals or country level. Passports can include
understand their skill set and the skills that demographic data to track new economy
are needed for employment. Such tools should skills across under-represented groups.
help overcome the information barrier
for individuals. – Measure engagement in new economy skills
learning opportunities. These data can be
used to identify and solve for potential barriers
Measuring gaps and inequities to access across demographic groups.
on the attainment of these skills – Track the number of individuals across
demographic groups. Tracking those who
Tracking the development and deployment of enter jobs powered by new economy skills will
new economy skills across traditionally under- help ascertain whether the skills are deployed
represented groups, including women, individuals equitably.

Future Focus 2025 68

3.2 Equity and
social justice
Recovery from the pandemic provides
an exceptional opportunity to build new,
just systems that honour the dignity
and equality of every human being.

The COVID-19 pandemic has aggravated pre- existing inequalities in society. Increased social
existing inequalities globally and heightened the unrest and disruption heightens the global
visibility of deep-rooted structural and social demand for change.
inequities in education, employment, housing and
healthcare. The issues faced by people across the – Addressing the gap between commitments
dimensions of diversity vary and are often further and progress. Organizations and institutions
complicated by their intersectionality. The increased repeatedly negotiate the tension between
mobilization and momentum for change, however, intentions and progress while building systems
have not translated into progress in building that are truly more equitable and socially just.
systems that are truly more equitable and just.
The recovery of economies and societies from the
Two key trends are both challenging and pandemic provides an unprecedented occasion
contributing to more equitable and socially to leverage intentional, coordinated multisector
just societies: actions, driven and measured by data to build
new and just systems that honour the dignity and
– Deepening and exposing inequalities. equality of every human being.
COVID-19 has laid bare and deepened already

Future Focus 2025 69

 Vision 2025

Investing Providing underserved groups Supporting business activism

in the lifelong with job access, skills and through inclusive metrics and
employability of
all workers ensures growth opportunities reporting
social welfare
The COVID-19 pandemic is wreaking havoc Globally, 90% of businesses claim to prioritize
but is also critical
on global economies, disrupting supply chains diversity, yet many are falling short on making
for business by
and causing labour shortages. In developed progress towards creating more equitable work
addressing the economies, retiring workers or those voluntarily environments for all employees.150 For many
skills gap and quitting roles are said to be the cause of the institutions and organizations, the wave of change
building a resilient shortage, but issues such as border controls and is coming in the form of ESG requirements.
labour market. immigration limits as well as demands for better
pay and flexible working arrangements are also Governments, financial Institutions and the public
contributors.148 Despite this opportunity for jobs, at large are demanding increased transparency and
racial, ethnic, age, gender and education-level accountability around setting goals and reporting
unemployment gaps, among others, still exist. progress against ESG targets, particularly on
Only structural changes to institutions, policies and the social agenda. Measuring and reporting on
mindsets will lead to true equality of opportunity DE&I efforts inclusively means engaging a wider
in the labour market. Investing in the lifelong representation of groups in DE&I efforts and making
employability of all workers ensures social welfare a commitment to progress that considers the
but is also critical for business by addressing the needs of all people, especially those who have
skills gap and building a resilient labour market. been previously under-represented in business and
in business metrics. Gathering and using inclusive
The composition of the economy is changing, metrics and reporting is a solution to realizing
labour markets are undergoing fundamental equity and social justice, a tool for activism and a
transformations and new job roles are emerging, mechanism for broader structural and behavioural
shifting the skills businesses need to innovate and change in business.
grow. While these shifts hold the promise of more
rather than less work for people, significant gaps Through measuring and reporting DE&I inclusively,
are already evident in many of these growing fields businesses are raising awareness of existing
for under-represented groups. Structural changes, inequalities, making progress visible as well as
including degree requirements, the recruiting galvanizing commitment and momentum to DE&I
process, on-the-job training, and hiring for all among employees and businesses. Inclusive
dimensions of diversity, will build a resilient and metrics and reporting can also foster employee
equitable labour market.149 trust and satisfaction, strengthen business
reputation and help businesses secure more
resources for DE&I. The data generated through
inclusive reporting can help businesses influence
political, economic and social decisions that
ultimately ensure equitable work environments as
well as contribute to closing the implementation gap
of realizing more equitable and socially just systems.

Future Focus 2025 70

 Pathways to Vision 2025

Providing underserved groups secondary education completion rates, especially

for under-represented groups. More collaboration
with access to jobs, skills between governments, education institutions
and growth opportunities and businesses is needed. For example,
the National Academy Foundation connects
Businesses and governments must take a systemic the business community to the education
approach to providing equitable access as well as community to value learning other than at college
remove the college degree barrier and understand and to develop on-the-job training.
the structural barriers to equal job access. In
addition, the following measures should be – Support workers through all phases of
captured in new ESG frameworks. life. Workers should be supported to remain
in the labour market after key life transitions.
Strategies for operationalizing this pathway include: For instance, EnterpriseAlumni helps large
organizations maximize relationships with
– Support under-represented groups. OneTen former employees as a vast, untapped pool
is a coalition of executives committed to of hires, referrals and advocacy as well as
upskilling, hiring and promoting 1 million Black drive community and nurture the workforce.
Americans in the next 10 years. Another For the ageing population, reskilling, upskilling
example is Year Up, which provides young and lifelong learning programmes as well as
people with skills, work experience and support supporting workforce re-entries are the
in finding a job. Organizations and governments way forward.
should prioritize measuring the effectiveness
of these initiatives by tracking their impact on – Connect with young people on the jobs of
diverse people over time, such as success in today and the future. Globally, the examples
securing and holding jobs. of mentorship programmes in which seasoned
professionals mentor young people towards
– Offer flexible work options. Businesses success are many. Governments should
should ensure these options do not inhibit support these programmes and companies
Every business future development opportunities, such as should participate in them.
faces its own skills upgrading and career advancement.
diversity, equity Insurer Zurich made flexible working the norm Amplifying the impact of
by offering all vacancies as part-time, full-time,
and inclusion
job-sharing or flexible working. This change
business activism
challenges and,
resulted in applications doubling, one-third
therefore, must more women securing senior roles and a rise Every business faces its own DE&I challenges and,
develop its own in belonging among part-time employees.151 therefore, must develop its own set of metrics and
set of metrics processes for measuring progress towards DE&I. In
and processes – Address gaps in school-to-work transitions. gathering and reporting on employee and corporate
for measuring The focus should particularly be on economies data, protecting individuals from the unintended
progress. with a high proportion of youth and rising or negative consequences of data disclosure

Future Focus 2025 71

 To realize is critical. Furthermore, businesses must find existing policies and procedures across
inclusive metrics new ways to work with government frameworks all organizational functions. For example,
and reporting, that hinder the ability of companies to measure DE&I metrics could be owned by the full
workforce diversity. To realize inclusive metrics and executive committee to ensure collaboration
businesses should
reporting, businesses should move away from a organization-wide.
move towards
siloed approach to DE&I consolidated under the
an integrated human resources function and move towards an – Align metrics and reporting structures.
approach across integrated approach across all business functions This will standardize and benchmark DE&I
all business to support corporate cultural change. Governments efforts across businesses and global indexes.
functions to can amplify the impact of business activism by Sustainability and resource indexes need
support corporate setting standards for data analysis and disclosure to ensure that the metrics cover all aspects
cultural change. as well as holding businesses accountable of DE&I. Additionally, organizations should
and disseminating effective examples.152 create a legal framework that lays out which
diversities can be measured in different
Strategies for operationalizing this pathway countries and how best to measure safely.
include:153
– Encourage employee resource groups.
– Identify and prioritize DE&I goals. This This encouragement includes mobilizing and
includes identifying areas of risk, assigning advocating for their interests, metrics and
accountability and continually assessing the inclusive policies, creating representation,
extent to which specified DE&I goals have incentives and further momentum. For
been achieved. Businesses should also example, organizations should co-create
ensure they are looking at intersectional and maintain DE&I metrics in collaboration
categories, which are often overlooked. with employee resource groups.

– Devise an intersectional and corporate- Governments can amplify the impact of

wide approach to DE&I metrics. This business activism by setting standards, holding
corporate approach should continually review businesses accountable and disseminating
and respond to systemic inequities within effective examples of business activism.

Future Focus 2025 72

3.3 Human rights
Human rights must be given a permanent
place in the boardroom to fully integrate
them in the strategy, leadership and
operations of a company.

Businesses must align their ESG work with – Legislation on business responsibility
international human rights norms and ensure that to respect human rights. While progress
the voices and perspectives of affected stakeholders in the last decade has been largely driven
are brought to the attention of leadership. by voluntary action and a small number of
corporate leaders, regulation will likely be
Three major trends related to business and human an important factor in environmental and
rights include: social sustainability in the next decade.
Governments began to introduce new
– Growing inequality. At the start of 2020, legislation aimed at addressing the corporate
70% of the world’s population was facing responsibility to respect human rights.
ever increasing inequality, a trend further
exacerbated by the COVID-19 pandemic.154 The corporate responsibility to respect human
rights, as set out in the UN Guiding Principles
– Expectations from stakeholders. Society on Business and Human Rights and related
expects powerful institutions to be increasingly standards, is the foundation for business’ role
accountable for their actions. Public trust in in preventing human rights harms and helping
institutions has decreased significantly and remedy those that occur. It is also the standard
young people around the world demand that for responsible business conduct. Taking a
all stakeholders deliver on the promise of a human rights lens will help companies meet their
post-pandemic world that tackles inequality, responsibility to respect human rights, meet
injustice and climate change. evolving societal expectations about business’
role and be a force in tackling inequality.

Future Focus 2025 73

 Vision 2025

Tackling societal challenges – Societies expect businesses to be responsible

societal and environmental actors. These ESG
expectations are increasingly translating into new
Outside of their own operations, by 2025 business laws and industry standards – some focusing
proactively engage in wider societal discussions on on mandatory human rights and environmental
how to reduce inequality and promote human rights. due diligence, others on mandatory disclosure or
on the non-financial responsibilities of company
– Businesses cannot remain neutral on boards. Most of these approaches require, or
issues relating to growing inequality within are enhanced by, engagement with affected
society and between generations; they must stakeholders. Knowledge of the risks these
actively challenge discrimination or risk groups and communities face, and the impact
being perceived as silently complicit. The of companies on them, enable responsible
#MeToo, #BlackLivesMatter and other social companies to comply more fully with these laws
movements have shown that gender, racial and standards.
and other forms of inequality are deeply rooted
everywhere, while climate justice demands an – Correspondingly, company boards must
intergenerational approach to all sections reflect the broader composition of society. Too
of society. many boards lack diversity and have little or
no representation from affected stakeholders
– Flawed business practices, including and their representatives. Companies cannot
insufficient attention to harmful labour practices address social inequality effectively if they
in global supply chains, exacerbate inequalities, embody this same inequality in their senior
such as those resulting from inadequate management and board structures.
wages, a lack of workplace representation
or collective bargaining, or the exploitation of
vulnerable groups, such as migrant workers. Building competence,
– Businesses benefit from the rule of law
experience and skills
and from a vibrant civil society. Efforts by
governments to undermine strong legal As ESG expectations grow, boards of directors
accountability or to restrict civic freedoms will, hold critical roles as stewards for the company and
in turn, have a negative impact on business. its interests. By 2025, boards must recognize the
evolving expectations on companies with respect
to human rights, and ensure their own membership
Engaging with affected has the right skills, knowledge and commitment to
Boards must these issues.
recognize
stakeholders
the evolving – Boards need to be diverse in both their
expectations Corporate responsibility to respect human rights members’ backgrounds and identities, as
on companies is fundamentally about people. Protecting and well as their experience. This requires an
with respect to empowering those most vulnerable to the impacts intersectional approach to board composition.
of corporate actions is key to meeting that Composition cannot be about identity or visual
human rights, and
responsibility. By 2025, engaging with affected appearance alone but must also be about
ensure their own stakeholders should not be a box-ticking exercise heterogeneous experience and mindsets.
membership has but rather a way of truly and directly gaining
the right skills, insights into the ways in which companies and – Training in ESG is an evolving requirement.
knowledge and their practices affect people and communities. Boards must also be sensitized to the true
commitment to impact of their companies in societal and
these issues. environmental terms.

Future Focus 2025 74

 Pathways to Vision 2025

For human rights concerns to be fully integrated impact on people and be held accountable for
across the strategy, leadership and operations those impacts.
of a company, the topic must find a permanent
place in the boardroom itself. To be able to do – Establish engagement mechanisms.
that, companies must engage with stakeholders, This includes creating clear and efficient
especially those most vulnerable to potential mechanisms for a meaningful understanding of
negative impacts. and engagement with affected stakeholders, in
particular those rights holders most vulnerable
The World Economic Forum Global Future to the negative effects of business actions.
Council on Human Rights challenges corporate
boards to examine their existing capacity and – Build competence. This means ensuring
commitments on human rights, providing tools and that corporate boards have the expertise and
guidance for how they can prioritize stakeholder competence to not only understand human
engagement on these issues as an exercise of rights impacts but also actively engage
their board duties. Through a series of private with internal functions in the company to
consultations with corporate non-executive address them. This may require the direct
directors, business leaders, corporate human rights representation of affected stakeholders on
experts, affected stakeholders and civil society the board or through the selection of board
representatives, in the coming year the Council will members with human rights expertise and/
release guidance to boards on new and existing or responsibility. It could also take the form
mechanisms for affected stakeholder engagement, of proxy representation through, for example,
Human rights are understanding and signposting the experience worker councils.
not simply the “S” and competencies that are essential for board
in ESG. Companies members to act effectively on this knowledge. – Ensure performance tracking and reporting.
Respect for human rights must be linked to
need to undertake
Strategies for operationalizing this pathway include: performance KPIs and clear incentives at all
comprehensive
levels of the organization. Board members
human rights – Conduct human rights due diligence. Human should review performance tracking and
due diligence to rights are not simply the “S” in ESG. Respect reporting on an ongoing basis as part of
understand their for human rights must underpin all business the overall performance of the company.
impact on people action inside and outside of the company Corporate actions should also be evaluated
and be held and cannot be reduced to a single indicator. by independent assessors applying industry
accountable for Companies need to undertake comprehensive standards and metrics. The results of these
those impacts. human rights due diligence to understand their assessments should be transparently shared.

Future Focus 2025 75

3.4 Mental health
There has never been a more urgent
moment to address long-standing issues
in mental ill-health, or a better opportunity
to build back better.

The profound disruptions to daily life brought about disadvantages and those with pre-existing
by COVID-19 have led to an unprecedented rise in conditions.
rates of depression, anxiety, substance use and
attempted suicide, particularly among young – Disruptive technologies. Restrictions on
people. Additionally, mental health service physical movement and rising rates of mental
infrastructure has been disrupted. These health diagnosis are being countered by digital
consequences will outlive the physical danger of technologies that can operate remotely at scale.
COVID-19 and must be systematically addressed.
While this crisis is deeply concerning, it has – Harmful stigma. While much still needs to
instigated a paradigm shift in regulatory structures be done, advocacy, generational change and
and treatment. It has done much to put mental more frequent personal experiences of mental
health on the map as an issue that needs ill-health are breaking the stigma around
addressing, creating opportunities for innovative, discussing a topic that has long been taboo.
scalable solutions that transcend borders and
economic sectors.155 In the past year, forward-thinking policy-makers,
advocates, psychiatrists, neuroscientists,
– Widening inequality. Rates of mental ill-health psychologists, public health professionals,
conditions have risen across all demographics, technologists and business leaders have shown
but those hit hardest are younger populations, that the global community can face great
those who were already subject to structural challenges with resilience and determination.

Future Focus 2025 76

 Vision 2025

Ensuring trust in digital enable the inclusion of high-quality measures in

population or school-based surveys, enabling
technologies more nuanced understandings of outcomes,
risks and determinants.”157 Key efforts to validate
Digital solutions are rapidly deployed to reach as these measures, including younger age groups
many people as possible while demand for mental (10 to 14 years) and employing innovative
health services and global inequality are both approaches and the use of digital technologies
increasing. Questions remain on how these to improve data collection, are in place. These
solutions should be put into place, and what efforts contribute to closing the data gap related
mechanisms must be enacted to ensure they are to child and adolescent mental health at the
properly protecting privacy, live up to claims and are country level, ultimately extending benefits beyond
interoperable across systems and borders. a reduction in mental disorders, optimizing the
capabilities and quality of life of this generation.

Improving measurements for

better management Crafting policies to bolster
“mental wealth”
According to experts writing in the Journal of
Adolescent Health, “Addressing adolescent mental Mental health is no longer one of the most
health starts with good data on the prevalence neglected areas of public health. This neglect was
of mental health conditions as well as risk and caused in part because, historically, a “deficit-based
protective factors. These data are essential for approach” was adopted, focusing on avoiding
informing the design and implementation of mental illness and relying on the health sector to
appropriate policies and programmes and allocation manage problems and respond to acute events,
of resources to support adolescents. Yet, data despite a recognition of broader social and
on adolescent mental health remain sparse, economic drivers. This approach did not fully
especially in low- and middle-income economies conceptualize the human potential that could be
(LMICs) where … nearly 90% of the world’s 1.2 unlocked by investing in mental assets, which in
billion adolescents live. The challenges inherent turn can lead to wealth creation for individuals,
The concept of to measuring mental health are exacerbated in communities, and economies. As countries
“mental wealth” LMICs, as lack of investment has led to lack of reconstruct in the post-COVID era, mental health is
helps policy- resources and standardized validated tools for reconceptualized as a key contributor to the mental
makers understand measuring mental health in these settings.”156 wealth of nations, encouraging an asset-based
and choose the approach that pushes governments to focus on
right policy levers Data collection efforts focus on adolescent health creating environments where people can flourish.
risks (such as bullying, substance use, lack of The concept of “mental wealth” helps policy-makers
that contribute
physical activity), with scant data on adolescent understand and choose the right policy levers
to increasing mental health outcomes, and little information on (across the economic, health and social sectors)
community key determinants, including norms. According to that contribute to increasing the community
connectedness, experts, “Efforts to develop validated adolescent connectedness, mental capital, mental health and
mental capital, measures of population mental health (including well-being that underpin productive, creative,
mental health through UNICEF’s Mental Health Among resilient and thriving communities and contribute to
and well-being. Adolescents at the Population Level initiative) building national prosperity.

Future Focus 2025 77

 Pathways to Vision 2025

Incentivizing the trusted, ethical resources across the potential drivers of mental
wealth. Addressing these challenges is the primary
adoption of digital solutions preoccupation of the University of Sydney’s
Mental Wealth Initiative, in partnership with the
Digital mental Digital solutions hold great promise to take away Global Future Council and the United Kingdom’s
health regulations some of the burden from over-stressed systems SIPHER (Systems Science in Public Health and
can ensure that while simultaneously reaching those who do not Health Economics Research) Consortium. The
innovators know have the resources or capability to interact with primary objectives of the Mental Wealth Initiative
what to build traditional mental health services or may feel are to measure, monitor and forecast the mental
stigmatized in face-to-face locations. If regulated wealth of nations and help identify those policy
towards, and end
properly, digital mental health regulations can opportunities that will foster this broader measure
users have trust
ensure that innovators know what to build towards, of national prosperity.
that the product procurement offices (whether they be governments,
they are using is employers or insurance organizations) have a clear Strategies for operationalizing this pathway include:
safe, ethical and sense of what they are getting, and end users have
efficacious. trust that the product they are using is safe, ethical – Define and quantify a measure of mental
and efficacious. wealth. The initiative is working to
operationalize national and population-based
Strategies for operationalizing this pathway include: measures of mental wealth that broaden the
lens against which social and economic
– Pilot the toolkit for digital mental health. In progress are assessed beyond that traditionally
partnership with Deloitte, the World Economic captured by GDP.
Forum has developed the Global Governance
Toolkit for Digital Mental Health to “provide – Apply a systems lens. Measuring and
governments, regulators and independent forecasting mental wealth requires a systems
assurance bodies with the tools to develop, modelling approach, capturing the interacting
adopt and engage standards and policies that factors that influence mental capital, mental
address major ethical concerns relating to the health and well-being that in turn contribute to
use of disruptive technology in mental health.”158 productivity gains and losses not traditionally
accounted for in other measures of national
– Contribute to future iterations of the toolkit. wealth. The initiative is applying complex
Innovators, business leaders, policy-makers systems modelling and simulation to forecast
and mental health experts are all needed to national trajectories of mental wealth and to
ensure that the framework remains dynamic understand the extent to which government
and up-to-speed with the latest trends. policy-mediated changes in the economic,
health and social environment could enhance it.
Rebuilding the mental wealth
– Move from research to action. The initiative
of nations is working with government, business, mental
health and social policy and community
Despite unprecedented investment in strengthening leaders. It provides the forums needed to
economic, social and health systems that could facilitate the exchange of knowledge and ideas
foster mental wealth in the wake of the pandemic, to harness collective efforts, networks and
several challenges remain, including uncertainty resources to develop mental wealth and to
regarding what impact those investments are coordinate advocacy and action nationally
likely to have and how best to allocate limited and internationally.

Future Focus 2025 78

3.5 New agenda for fragility
and resilience
Greater impact can be achieved by putting the
needs of affected communities at the centre of
humanitarian and development assistance.

Fragile regions are faced with an increasingly complex efforts. When states lack fundamental structures
mix of challenges characterized by protracted and economic systems have collapsed, broad
conflicts, disease, poverty, climate change and weak multistakeholder responses, including for
governance. The United Nations estimates that 274 macroeconomic stabilization, are needed.
million people will need humanitarian assistance
and protection in 2022159 at a cost of nearly $41 – The paradoxical impacts of digitalization.
billion dollars, or nearly double the needs before the Digital access and tools have helped boost
COVID-19 pandemic,160 in addition to development economic productivity and unlock access to
aid needs.161 services. Yet, despite the potential to meet
many humanitarian and development needs
Yet, trends indicate that many challenges risk not through digitalization, many rural and low-
being addressed due to: income communities around the world lack
reliable, affordable internet access, or the tools
– The changing nature of conflict. The volume and skills to use it. On the other hand, there is
and length of humanitarian and development a risk that these digital solutions, if designed
needs are increasing as conflicts become and implemented without appropriate expertise,
more protracted and globalized with more could harm those they are intended to protect.
numerous and fragmented actors. This is further For example, the use of autonomous weapon
aggravated by the convergence of megatrends, systems and cyberattacks pose threats to
such as climate change, urbanization, the humanitarian and development efforts162 as
COVID-19 pandemic, corruption, violence and they can attack critical infrastructure, influence
poor governance, resulting in adverse effects social and political environments, and affect
on livelihoods and essential services, and response preparedness in humanitarian and
undermining development and humanitarian development organizations.163

Future Focus 2025 79

 Greater impact – The widening gap between needs and Actors across sectors are missing critical
can be achieved resources. The World Bank estimates that an opportunities to collaborate to meet the growing
by putting the additional 20 million people live in extreme poverty and evolving needs of fragile communities.
needs of affected in countries affected by fragility, conflict and Greater impact can be achieved by putting the
violence.164 Realizing the SDGs in the most fragile needs of affected communities at the centre
communities
contexts requires mobilizing significant public- of the response, with space for all actors to
at the centre of
and private-sector investments. Current financing contribute their different skills, expertise and
humanitarian and mechanisms remain insufficient, public finance resources. In many settings, especially those
development is plateauing, and business cases for private- of deep fragility, this will occur through public-
assistance. sector investments in fragile contexts are unclear and private-sector collaboration at the local,
or lacking due to an absence of compelling national and international levels. It is critical
proof-of-concept projects, financial de-risking that these efforts are supported by an enabling
mechanisms, infrastructure and required supply domestic legal, policy and operational framework
chain/ecosystem actors in the market. Such gaps for which states are primarily responsible.
in resources lead to significant delays to provide
timely humanitarian and development assistance.

Vision 2025

By 2025, all communities have the infrastructure to – Climate-sensitive essential infrastructures are
access basic services, and the delivery of services is established to shield local populations from
commercially sustainable. To achieve this vision, intersecting shocks and vulnerabilities.
better alignment and cooperation among public- and
private-sector stakeholders at the local, national and
international levels are needed to make significant Building capacity for locally
progress building these infrastructures and creating
the sustainable markets that put communities in
based action
crisis on the path to resilience. Emphasis should be
placed on ensuring access to essential services, By 2025:
enabling a life of dignity and opportunity, supporting
the development of thriving and resilient economies, – Local institutions partner with local private-sector
and expanding digital access. organizations and international aid organizations
to design, fund and implement solutions.

Designing user-centric solutions – Existing resources are maximized and long-term

strategies to transition responsibilities for more
sustainable and scalable operations are
By 2025: developed.

– The needs of affected communities are placed – Local capacities are reinforced to scale and
at the centre of the response through an speed response in crisis situations, and whenever
iterative design and implementation process, so possible, prioritized and routinely deployed to
that services and products are locally relevant address issues within the community.
and accessible, individuals have choice, and
the quality-of-service delivery improves.

Future Focus 2025 80

Unlocking public- and private- Leveraging existing digital
sector finance to achieve the technology and building
SDGs and enable local markets new capacity
By 2025: By 2025:

– Private-sector organizations provide food, health, – Local and international private- and public-
education, water, sanitation, electricity and other sector organizations partner to identify
essential services in fragile regions where these opportunities to promote infrastructure as a
are lacking and where a business case could be public good.
made for this; humanitarian and development
organizations, and local and international – The scaling of existing solutions is prioritized,
governments, fill that role in other cases. whenever possible, to build digital capacity and
infrastructure in humanitarian organizations and
– Local and international private-sector local populations.
organizations partner with public-sector actors
to increase humanitarian funding and financing, – Local non-governmental organizations partner
and to develop new market pathways that allow with organizations focused on improving the
aid-reliant groups to earn an income. digital experience to ensure designs are based
on the needs of local populations and provide
– Government leaders enable markets as opportunities for aid-dependent populations
the foundation for a community’s long-term to explore opportunities for economic
resilience. A more vibrant local economy provides independence.
increased access to employment for populations
in local contexts, allowing them to move – Adherence to best-in-class data security and
from aid reliance to increased autonomy and privacy standards is achieved when handling the
independence. individual data of vulnerable populations.

Future Focus 2025 81

Pathways to Vision 2025

To achieve this vision, multistakeholder action is

Developing user-centric
required in four areas: developing user-centric
responses and solutions to crises; reducing responses and solutions to crises
the gap between needs and resources, in
particular by leveraging and strengthening – Support existing multistakeholder action.
local capacities; deploying public- and private- The Grand Bargain is “a unique agreement
sector finance to support SDGs, in particular between some of the largest donors and
by developing entry points for private-sector humanitarian organisations who have
investments in fragile contexts; and leveraging committed to get more means into the hands of
and scaling digital solutions in fragile contexts. people in need and to improve the effectiveness
and efficiency of the humanitarian action”.166
The World Economic Forum Global Future Council Its workstreams 1 (Greater Transparency)167
on the New Agenda for Fragility and Resilience and 6 (Participation Revolution)168 are
developed a set of “Guidelines for complementary particularly relevant. Other key foci of action
action in fragile contexts”165 in line with these four include the Charter for Change, USAID’s
pathways. The goal of the guidelines is to build User-Centric Design Approach, Principles for
more resilient communities through public-private Digital Development (Design with the User),
partnerships that are focused on the risks, needs Core Humanitarian Standard on Quality and
and aspirations of local communities and on Accountability and World Resources Institute’s
enhanced complementarity of local, national and Principles for Locally Led Adaptation.
international as well as private- and public-sector
actors, and that are facilitated by digital solutions.

Reducing the gap between Deploying public- and

needs and resources private-sector finance

– Strengthen collective action. The Grand – Join existing initiatives. Initiatives to consider
Bargain workstream 2 seeks to provide more joining include the World Economic Forum
support and funding tools for local and national Humanitarian and Resilience Investing Initiative,
responders,169 and the Joint Intersectoral the World Bank’s PS4R (Private Sector for
Analysis Framework provides further ideas Refugees), Refugee Investment Network, Crisis
for reflection. Lookout coalition or the Anticipation Hub.

– Support existing partnerships and initiatives.

Partnering should be considered, for example Leveraging and scaling of digital
with networks like ICVA, NEAR and START
Network, as should support for initiatives, such
solutions in fragile contexts
as the UN Connecting Business initiative or the
Somalia Nexus platform. – Follow best practices. Additional information
can be accessed at Principles for Digital
Development.170

– Join partnerships. Organizations to consider

for partnerships include the Digital Public Goods
Alliance or GovStack.

Future Focus 2025 82

 3.6 Social cohesion
and just transition
A just transition to sustainability is a
necessary condition for ambitious climate
action and to shape an equitable and
climate-proof recovery.

While the effects of climate and environmental objectives is witnessing rapid increases, with
challenges undermine jobs, disrupt businesses demand often outpacing supply, but also
and threaten communities, the transition to net creating challenges related to transparency,
zero also involves deep restructuring of economies accountability and ratings. A just transition
and labour markets with far-reaching social offers a framework to better articulate, address
implications. The concept of a “just transition”, and manage social risks and the potential
which originated from North American unions in social impacts of the restructuring and
the 1990s as a framework to support workers contraction of emission-intensive industries.
likely to lose their jobs due to environmental
protection policies, has since evolved to focus – Increasing attention and a proliferation
on deliberate, choreographed efforts to ensure of initiatives and instruments. The United
environmental sustainability with more and better Nations just-transition framework is gaining
A “just jobs, social inclusion and poverty eradication. prominence in national and international policy
transition” focuses as policy-makers address the links between
on deliberate, – Ensuring net zero for all. The net-zero employment and social impacts of climate
choreographed shift may bring quality jobs and social action to deliver fair and inclusive change. An
inclusion, but it will not happen by default. understanding of the concept varies, risking
efforts to ensure
Unplanned and unmanaged, the transition weakening the value of a just transition as a
environmental
may exacerbate inequalities between policy tool and way to achieve social consensus.
sustainability and within countries and leave workers,
with more and communities and businesses stranded. It is critical to strengthen shared commitments and
better jobs, identify measures to align financial flows to social and
social inclusion – Expanding sustainable investment and environmental objectives in an integrated manner
and poverty green finance. The volume of financial flows through a common just-transition framework.
eradication. allegedly aligned to environmental and social

Future Focus 2025 83

 Vision 2025

A just transition to sustainability has gained this momentum to provide robust and achievable
prominence as a necessary condition for ambitious entry points for financial-sector actors to align
climate action and as a framework to shape an their decisions and strategies to a just transition.
equitable and climate-proof recovery. Adopting a
just transition framework in public policies, business
strategies and investments enables recognition Illustrating applications of just-
of the employment and social implications of
climate action to maximize positive impacts while
transition financing logic
minimizing and addressing negative ones and
ensuring decent work. Strong consensus enables To devise practical recommendations on what
bold and inclusive change. Social dialogue is a financing for a just transition may mean and require
crucial basis for a just transition, which also relies in practice, sectoral and topical perspectives are
on meaningful stakeholder engagement processes key. Such sectoral and topical perspective focuses
with communities and Indigenous peoples. on sectors with high relevance to environmental
sustainability, particularly action on climate change
and biodiversity, the decent work agenda, poverty
Building a common understanding eradication and rights.
of a just transition In the context of the energy transition, the mining
sector is taken as the initial sector of focus, which
With the growing interest in a just transition and an may generate lessons applicable to developing
increasing number of initiatives being developed, analyses of other sectors. Mining in connection
the concept is rendered as an internationally to a just transition is typically tackled in relation
negotiated and recognized framework in the UN, to coal mine closures and impacts on workers
under the International Labour Organization’s and communities, but broader dynamics are at
(ILO) 2015 Guidelines for a Just Transition. The play that also deserve attention. Clean energy
Guidelines provide a whole economy approach minerals are critically important for ambitious
to ensuring decent work, sustainability and social climate action as mining has tight connections
inclusion, and focus on collaborative processes to deforestation, ocean health and biodiversity
(termed “social dialogue”) with governments, loss. Such environmental challenges need to be
companies, investors, workers and civil society.171 tackled if the transition is to deliver sustainability
and avoid creating unmanaged trade-offs.

Supporting financial flows to a For a just transition in mining to be true to

sustainability goals and future-proof, it must
just transition also consider and plan for shifts towards greater
Adopting a
just transition circularity. The value chain of clean energy minerals
framework in By 2025, public- and private-sector financial is closely connected to the decent work agenda,
public policies, flows align to just-transition goals to ensure poverty eradication and the rights of Indigenous
commitments translate into investments and peoples. Delivering a just transition requires ensuring
business strategies
tangible changes. A just transition offers financial jobs along the value chain are decent, the rights and
and investments institutions and stakeholders a framework to well-being of Indigenous people and communities
enables recognition better articulate and address social risks and are respected, and mining revenues can foster local
of the employment opportunities in green finance and related portfolios economic and social development. Articulating
and social and to assess and manage the potential social these considerations and drawing recommendations
implications of impacts of the restructuring and contraction of with a just-transition financing perspective can
climate action. emission-intensive industries. It is vital to leverage clarify opportunities, risks and strategies.

Future Focus 2025 84

Pathways to Vision 2025
Enhancing understanding and – Foster greater knowledge sharing from
existing national social dialogue processes
increasing support for a just on a just transition. Unions and workers’
transition associations are essential for worker
participation in transition. According to the ILO’s
Considering the emergence of many initiatives, working definition, social dialogue “can exist
commitments and messages on the just as a tripartite process, with the government
transition, enhancing the awareness of the as an official party to the dialogue or it may
transition is needed, translating the existing consist of bipartite relations only between
concept (and its internationally recognized and labour and management (or trade unions and
negotiated references) into strategies, actions employers’ organizations), with or without
and examples for key change agents. indirect government involvement”, and involves
formal processes of negotiation, consultation
To promote a greater understanding of a just and information exchange and covers both
transition and its implications for stakeholders, economic and social policies and agreements.172
the World Economic Forum Global Future Council
on Social Cohesion and Just Transition seeks to – Facilitate peer learning, knowledge transfers
develop models to apply financing mechanisms in and best practice sharing. Examples include
line with the just transition and highlight emerging organizing seminars and workshops with
areas for translating the transition with workers practitioners to present and discuss just-
and communities into strategies and actions. transition actions.

Strategies for operationalizing this pathway: – Encourage opportunities for multistakeholder

collaboration on successful just-transition
– Produce and disseminate knowledge and processes and results. Multistakeholder
communication products. This includes collaboration is needed to socialize the existing
providing further information to stakeholders ILO guidelines and further ensure their
on their roles in driving a just transition application across stakeholders, sectors and
and showcasing existing examples where country contexts.
the transition has been successful.

Aligning financial flows to a just – Build use cases. Practical recommendations

can be drawn upon based on the just
transition energy transition and mining cases, tackling
multidimensional challenges and opportunities
Given the growing interest of investors and other around decent work, local communities
financial institutions in a just transition, there is and environmental management.
need to build on and contribute to the emerging
body of research on how to structure just- – Develop recommendations on just-transition
transition financing and draw recommendations financing. It is necessary to understand
that can serve as a basis for action. existing cases where a just transition has been
successful, how it was financed, and which
Strategies for operationalizing this pathway include: best practices can be applied across contexts.

– Define the state-of-play and map the just – Harness public-private cooperation
transition finance ecosystem. Relevant and partnerships. One example is holding
frameworks and initiatives can be drawn roundtables to discuss recommendations and
upon, and gaps may be addressed. encourage action.

Future Focus 2025 85

 3.7 Work, wages and
job creation
Reskilling is critical for many career
transitions, and around half of all employees
will need reskilling between 2020 and 2025.

Quality jobs, with The triple disruption of the COVID-19 pandemic, an opportunity exists to transform how work
decent wages and accelerated automation and climate change is is conceptualized, organized and performed.
working conditions, accelerating the following trends and leading to rising
social discontent: – Increased inequality. Wages have faced
are needed.
further downward pressure and the differentiated
Addressing the
– Job disruption. ILO estimates project 52 impact of the triple disruption on disadvantaged
disruption to million fewer jobs worldwide in 2022 than in the groups has reinforced challenges of declining
jobs, wages and fourth quarter of 2019.173 The urgent need is social mobility.
work requires a to encourage job creation, especially for youth,
cross-sectoral, women and vulnerable groups, and to support Quality jobs, with decent wages and working
multistakeholder the transitions of workers from at-risk roles. conditions, are needed. Addressing the disruption
effort. to jobs, wages and work requires a cross-sectoral,
– Transition to the future of work. Job quality has multistakeholder effort. Collaborative, large-scale
come into greater focus and the challenges of action can ensure economic dynamism and build
new ways of working for well-being have become a vibrant and sustainable ecosystem with an
apparent. As organizations respond to the current employable and productive workforce in good-quality
disruptions and to changing worker preferences, jobs paying decent wages.174

Future Focus 2025 86

 Vision 2025

Investing in new economy Reskilling is critical for many transitions; indeed,

around half of all employees will need reskilling
sectors and emerging roles between 2020 and 2025.179 But reskilling is better
established for high-skilled jobs than for the
Job destruction paired with widespread rejection much larger number of lower-skilled jobs – the
of poor-quality jobs has created a need for most susceptible to automation. The massive
more and better jobs. New economy sectors expansion of online learning during the pandemic
with promising job creation potential include the offers a potential solution.180 Also required is better
care and sustainable economies, infrastructure assistance for workers to understand potential job
and sustainable agriculture. Investing in the transition pathways and the skills they will need to
care economy not only directly creates jobs develop for new roles. Moreover, career transitions
but also removes barriers to women working. take time and often require extended support.
In the sustainable economy, jobs that help
preserve or restore the environment (whether
in traditional sectors such as manufacturing or Providing minimum and living
in emerging green sectors) modify production
and lower energy use to achieve the objectives
wages
of the Paris Agreement of limiting global
temperature rise to below 2° C, and could The pandemic has called attention to the ways
create 18 million jobs globally.175 Infrastructure in which undervalued and underpaid work puts
investment offers both short-term direct job pressure on societies and economies and weakens
creation and longer-term indirect job creation.176 resilience to shocks. Although 90% of the 187
ILO member states have a minimum wage,181
according to the World Bank, wage regulations
Supporting workers through are often bypassed and “in most developing
countries, between a quarter and a half of wage-
job and career transitions earners receive less than the statutory minimum
wage”.182 Research shows that concerns among
Longer working lives will entail more job transitions. economists that such policies would have adverse
12 million more In addition, the triple disruption will force many effects on employment have not been realized.183
jobs will be created workers to pivot into a new career path. The
World Economic Forum estimates that 12 million It is important to set a base for wages that
than displaced
more jobs will be created than displaced by 2025 enables people to live with dignity and provide
by 2025 due to due to AI,177 and public-private partnerships for a family, including education and healthcare.
AI. Public-private can help workers transition into these new jobs. Universal basic income has been much discussed
partnerships can Within companies, transitions can be smoothed considering the risk to employment from
help workers by internal training and mentoring. However, automation, but evidence of its effectiveness is
transition into many transitions take place across companies less established than for minimum/living wages,
these new jobs. and the support for such moves is limited.178 and it poses greater funding challenges.184

Future Focus 2025 87

 Pathways to Vision 2025

Investing in new economy and worker welfare. New employment

models, such as job-sharing, have the
sectors and emerging roles potential to provide flexibility and security.

A multistakeholder approach is essential to – Support public-private partnerships for

investing in new economy sectors and emerging job creation. Addressing the employment
roles. Businesses and governments should gap and ensuring that the jobs created are
work together to understand the relationships good jobs require sustained collaboration
and dependencies between industries, and among all levels of government, employers,
how strategies for job creation map across this workers, labour unions, education and
ecosystem of relationships. training providers, workforce technology
companies, employment agencies and
Strategies for operationalizing this pathway foundations. Business leaders and investors
include: must pay closer attention to the longer-term
dividends of investing in the workforce.185
– Adapt to new employment models.
Traditionally, companies have either hired – Scale up net-zero employment policies.
people as full-time equivalents or defaulted Companies can commit to reskilling people
New employment to using variable staffing, contractors and in at-risk jobs into new roles within or beyond
models, such as freelancers. However, the inflexibility of the company. Governments need to ensure
job-sharing, have traditional employment models can discourage that public investments crowd in rather than
the potential to job creation and prompt workers to leave crowd out private investments and should
provide flexibility the labour market, and short-term solutions collaborate with business to scale up net-zero
and security. can come at the cost of security, stability employment policies to the sector level.186

Supporting workers through job have experimented with a range of approaches

to reskilling but most firms are not doing
and career transitions enough. There is scope for streamlining and
standardizing approaches to allow for scaling,
Supporting workers through job transitions requires for instance new types of certification such as
a strong focus on reskilling and fostering a culture micro-credentials. Governments can provide
that recognizes the social and economic value of incentives for reskilling by funding training
investing in workers. While many governments programmes and investing in online learning;
and businesses are helping employees prepare only 21% of businesses report being able to use
for the future of work, more should be done to public funds to help employees’ upskilling
build flexibility and adaptability into the culture and reskilling.187
and processes of the formal workforce.
– Consider AI-supported redeployment.
Strategies for operationalizing this pathway include: Effective job-switching strategies require the
dynamic mapping of opportunities available to
– Develop public- and private-sector workers based on their skills. Advanced data
programmes for reskilling. Leading companies and AI capabilities matched with user-friendly

Future Focus 2025 88

 Advanced data interfaces have an important role to play in data need to be translated into policies and
and AI capabilities job matching and assessing career transition methodologies backed by realistic commitments.
matched with user- options. Companies can create alliances both
friendly interfaces within and beyond sectors to provide transition Strategies for operationalizing this pathway include:
have an important pathways. Support for people undertaking
transitions can come from publicly provided – Implement effective minimum and living
role to play in job
safety nets and from the private sector rethinking wage policies. Where effective minimum wage
matching and
outplacement to provide more extended support. thresholds already exist, the case in many
assessing career developed economies, the aim should be to
transition options. – Embrace diversity and re-evaluate barriers ensure living wages. In non-OECD economies,
to entry. Facilitating smooth career transitions the focus should be on implementing minimum
across sectors means widening the pool of wages as a first step.189
candidates considered for traditional roles.
Businesses can do this by re-evaluating rigid – Commit to living wages. Businesses can
barriers to entry, addressing biases in the commit to paying fair living wages to their own
hiring process and introducing mentorship employees and ensuring their suppliers do
programmes for knowledge exchange. the same.

– Define and share methodology for ensuring

Providing minimum and living living wages. While many businesses
agree that a living wage is a good thing,
wages fewer have a coherent idea on how to
make it a reality. A multistakeholder-driven
The ILO has robust definitions of minimum methodology and framework is needed to
wages,188 and the Global Living Wage Coalition pave the path for change, drawing on strong
estimates realistic living wage levels. These case studies and robust labour data.

Future Focus 2025 89

4 Technology
4.1 Advanced
manufacturing
and value chains
Manufacturing is positioned to address
global megatrends and to serve as a role
model for a triple-bottom-line mindset.

Representing more than 20% of the planet’s carbon digital players and new entrants, manufacturing
footprint190 and contributing to approximately companies must go beyond digitalizing
16% of global gross domestic product (GDP),191 operations and leveraging investments in
manufacturing companies are positioned to drive advanced manufacturing to transform their
responsible growth while addressing the complex operating and business models.
challenges raised by consumers, climate change
and digital transformation. – The future of work. Work is shifting to become
more agile and flexible: the type of jobs and
The challenges include: skills needed are changing, while employees
are rethinking their work expectations regarding
– New consumer behaviours. The COVID-19 volume, location, opportunities for advancement
pandemic has deeply changed how consumers and work-life balance. Companies can leverage
select and buy products, and how they expect these two developments by focusing on
to be engaged by companies. Consumers workforce empowerment and retraining –
seek frictionless purchases, full transparency satisfying changing expectations of employees
of product information, and personalized while developing the necessary skill set for
products, which require new levels of the future.
performance and agility from manufacturing
and supply chains. In addition, the risk profile associated with
manufacturing and value chains has increased
– Climate change and the imperative of a significantly during the COVID-19 pandemic, with
net-zero-emissions world. Current challenges global events and growing challenges – such
have elevated the importance of manufacturing as the temporary blockage of the Suez Canal in
companies in cutting CO2 emissions and 2021 or continuously increasing cybersecurity
creating circular business models. threats – become more prevalent, complex and
pressing. Manufacturing companies must be
– Digital transformation and disruption. To empowered to embrace advanced manufacturing
remain competitive in markets transforming with towards more responsible and resilient growth.

Future Focus 2025 91

 Vision 2025

Manufacturing is positioned to address global achieve other targets. During challenges, such as
megatrends and to model a triple-bottom- hiring employees and rising energy and regulatory
line mindset that benefits not only profits, but costs, striving for more responsible production
also people and the planet. This vision can be benefits not only shareholders, but also the whole
summarized under three strategic pillars: ecosystem in which a company is integrated.
Moving towards circular value chains and net-
negative carbon manufacturing is imperative
Unlocking innovation in products, for a company to become more inclusive and
sustainable. Companies drive sustainable and
technologies and business models profitable growth, set plans to achieve carbon
neutrality and commit to ESG reporting throughout
Companies unlock and deploy innovative products, manufacturing and production value chains.
Moving towards technologies and business models to create new
circular value value and transform production industries with a
chains and net- positive impact on society. Driving inclusive value creation
negative carbon
manufacturing
is imperative for
Moving to sustainable value Measures are taken to provide every manufacturing
worker with new opportunities and to support
a company to creation companies of all sizes, regional governments and
become more local communities in strengthening companies’
inclusive and Sustainability in production is not just a vision and competitiveness.
sustainable. an explicit goal but also an enabler that can help

Pathways to Vision 2025

Creating value for all stakeholders Strategies for operationalizing this pathway include:

– Provide clarity. Clear values must be

Innovative business models must ensure that established for all stakeholders when launching
value and growth are created for all stakeholders new initiatives or adopting new technologies.
of a company, such as shareholders and
employees and their local business ecosystem, – Learn about the different stages of business
including customers, suppliers and government model transformation. Strategies for each
agencies, among others. Leveraging innovation stage exist and the board should ask key
and technology adoption are important to driving questions to ensure a smooth transition
this transformation. towards more digitalized business models.192

Future Focus 2025 92

 – Join the cross-company accelerator. This Leveraging technology adoption
accelerator, launched by the World Economic
Forum New Business Models enabled by
Advanced Manufacturing initiative, aims to Companies cannot solely focus on technology
deliver interactions where organizations share implementation; importantly, they must also
their own business model transformation concentrate on its comprehensive adoption by their
journey.193 organization at all levels and in all functions and
geographies. This requires significant adjustments to
the work culture, organization and work processes
Building resilient value chains while considering local circumstances. Defining clear
standards for excellence helps bring clarity and focus
to the criteria for successful adoption, and sharing
Resilience must become a core part of supply successful implementations and lessons learned can
chain strategies. Most legacy manufacturing empower entire ecosystems to progress further.
and value chains have undertaken significant
upgrades to cope with unprecedented consumer Strategies for operationalizing this pathway include:
needs and demand volatility, increasingly complex
regulations and heightened expectations on – Become a global lighthouse. Companies
tracking the impact of sustainability. This has in can submit a production site to be assessed
turn increased their reliance on complex digital and designated as a “Global Lighthouse” to
systems – which can themselves face significant showcase and share the experience.196
reliability issues and cybersecurity threats.
– Assess the readiness for introducing new
Strategies for operationalizing this pathway technologies. Companies can also use and
include: adopt the Smart Industry Readiness Index.197

– Explore distinct resilience profiles and

identify best practices. The World Economic Working towards human-centric
Forum White Paper, “Charting the Course for
Global Value Chain Resilience”, presents five
production
distinct profiles of resilience leadership to help
companies in the manufacturing and supply As the level of advanced manufacturing on the shop
chain ecosystem confidently chart a course floor increases, a broader range of skills – some of
towards resilience with focus and action and which are entirely new – becomes paramount to
to manage supply chain disruptions.194 the success of manufacturing businesses. It is thus
important that companies identify and develop the
– Assess the value chain resilience level. right skill set today to ensure success in the future.
Organizations Organizations can use the resiliency compass,
can use the a new framework for them to accelerate the Strategies for operationalizing this pathway include:
resiliency resilience-building process and define the
new priorities and actions needed to prepare – Develop the right skill set. The workforce
compass, a new
for and respond to future disruption.195 must be enabled to participate in the modern
framework for them manufacturing environment and interact with
to accelerate the – Consider resilience impacts when digitalized systems, enhancing their strengths
resilience-building implementing new systems. The resilience of and addressing their challenges for a more
process and define value chains must be considered a key metric inclusive environment. Both retraining and
the new priorities when making investment decisions, keeping increasing technical skills are important building
and actions. both its positive and negative effects in mind. blocks to achieve this.

Future Focus 2025 93

 – Nurture future leaders. Manufacturing – Internalize sustainability in the organization.
businesses should focus on nurturing future An executive should be appointed for
leaders with the right mindset to address sharing best practices and engaging in
global challenges. cross-company dialogue about successful
sustainability initiatives and implementation.
– Join the New Generation Industry Leaders
group. This Forum community comprises rising
industry leaders working to design and drive a Unlocking data and value of data
responsible industry transformation.198
sharing
– Champion workforce augmentation.
Companies can appoint an executive with Data are one of the most valuable digital assets that
responsibilities at the intersection of people, serve businesses, consumers and employees.
operations and technology deployment to Ensuring that data are captured, processed and
champion workforce augmentation initiatives activated in an accurate and timely way is
within the organization.199 paramount to maintaining trust in the digital
ecosystem. Sophisticated applications often require
– Share use cases and success stories. the exchange of data beyond company boundaries
Manufacturing businesses could share to effectively train AI algorithms and to support
successful cases of workforce augmentation collaboration in complex networks that require full
in the production ecosystem with industry transparency.200 It is also imperative to ensure a
pioneers, thought leaders, policy-makers and responsible use of data and to be aware of potential
labour unions. biases when training algorithms and AI.

Strategies for operationalizing this pathway include:

Developing sustainable
Ensuring that – Apply the Manufacturing Data Excellence
manufacturing systems framework. The framework can help gain
data are captured,
actionable insights on the data maturity of the
processed and
Strategies for operationalizing this pathway include: organization.201
activated in an
accurate and timely – Adapt the business strategy. The core of – Join a community of senior executives.
way is paramount the business strategy should incorporate Such a community provides the opportunity to
to maintaining sustainability, circularity and net-negative discuss the change journey of becoming a data-
trust in the digital carbon impact. This should be communicated driven organization.202
ecosystem. throughout the organization.

Future Focus 2025 94

4.2 Agile governance
Agile governance helps ensure that emerging
technologies can be harnessed for social
progress, while supporting responsible and
equitable transitions to the digital future.

Traditional institutions and regulatory processes connected. As social media, banks, healthcare,
have lagged in adapting and responding to the education and other fields integrate online, the
technological advances that drive economic and relationships between businesses, governments
social changes. Agile governance approaches seek and citizens will become more complex.
to reform regulation and bridge divides by generating
new approaches to policy-making that can unleash – Proactive business risk management. Business
innovation while creating effective regulatory and government must account for more risks
frameworks and better governance outcomes. alongside growing social and environmental
challenges. Mechanisms of traditional governance
To support innovative ecosystems, agile have been slow to respond, resulting in
governance will increasingly be influenced by businesses voluntarily adopting social responsibility
these trends: measures, such as reporting on ESG metrics.

– Disruptive technologies. As a driver of agility Such trends require agility to keep pace with the
and an enabler of dynamic regulatory systems, velocity of change in intricate systems, and
technological disruption will continue to spur governance frameworks to ensure governments
adaptive policy systems that can keep pace maintain control over regulatory and policy
with digital advances. systems. Combined, agile governance helps ensure
that emerging technologies can be harnessed for
– Complex public-private relationships. social progress while supporting responsible and
The real and digital worlds are increasingly equitable transitions into the digital future.

Future Focus 2025 95

 Vision 2025

Agile governance represents a fundamental shift in and regulations that better manage emerging
policy-making. To enable this shift, three actions for technologies and are resilient to further
change are needed: technological disruption. Many of the existing agile
governance tools are only just starting to mature
after being tested, refined and redeployed using
Harmonizing boundaries between identified best practices.
the public and private sectors Agile governance has evolved with the parallel
imperative of using technology to deliver optimal
Governance can no longer be a one-way channel regulatory and governance outcomes. The
from government to business. A more transparent systematization of technologies can unlock
and collaborative process can steer innovation, regulatory potential. An expanding field of
safeguard markets and protect consumers, all deploying regulatory technologies, known as
without unduly curtailing advancement or burdening “regtech”, leverages emerging technologies
the private sector. Harmonizing boundaries such as artificial intelligence (AI) and blockchain
will require: to improve the efficiency and effectiveness of
regulatory processes. However, as businesses
Governments to: increasingly take ownership of their social and
economic responsibilities through proactive risk
– Put consumers and businesses at the centre management, it is also important to consider how
of the process of policy development technology will support agile-based structures
like self-regulation or industry self-governance.
– Work across departments and authorities to
coordinate supervision of the private sector
Building demand and capacity
– Innovate their policy-making process

Businesses to: Agile methods can help government and business

overcome structural disadvantages that impede
– Engage policy-makers and other industry fast-paced decision-making and adoption.
stakeholders proactively For government, challenges include complex
bureaucratic processes and departmental silos.
– Be open about their needs and objectives to For business, complex legislation, high monitoring
help governments stay on top of the landscape and reporting costs, and regulatory uncertainty are
significant hurdles.
– Invest in education and capacity building to
make new technologies more accessible Greater awareness is about how agile techniques
Agile governance provide value. Examples include sandboxes,
involves the Redefining public-private relationships is essential. machine-coded regulation and performance-
development Without removing boundaries, implementing based regulation – from facilitating the birth of
of governance collaborative risk-sharing models can help avoid new industries and delivering social services to
frameworks, conflicts of interest while harmonizing exchange managing environmental activities. Furthermore,
policies and between government and business. capacity building is vital to create broader
regulations that understandings of agile principles, such as
human-centred design and experimentation, and
better manage
emerging Developing the tools to enhance personal abilities to create more agile
leaders. It empowers policy-makers with the right
technologies and technology knowledge and tools to facilitate their governance
and are resilient of technology and their use of technology to
to further Agile governance strives to improve the regulation govern. It also empowers businesses to iteratively
technological and governance of technology. It involves the improve and adapt their innovations to meet market
disruption. development of governance frameworks, policies demands and deploy technologies responsibly.

Future Focus 2025 96

Pathways to Vision 2025
Establishing scale learn” mindset. Programmes such as the Dubai
Programme to Enable Drone Transportation,
and designated physical experimentation fields,
For agile governance to scale beyond specific use help foster innovation beyond in a safe space.
cases, pilots and champions, an environment must
exist where businesses and policy-makers can – Share agile governance techniques and best
embrace collaboration, experimentation and user- practice. As an evolving area, it is important
centred design. to invest in understanding how best to employ
and deploy agile governance. The Global Future
Strategies for putting this pathway to use include: Council on Agile Governance is developing a set
of modules to help business leaders and policy-
– Foster agile leadership. Leaders can makers feel confident in using agile governance.
encourage others to embrace new methods of
policy-making by sharing the achievements of – Evolve from sandbox to scalebox. While
agile governance. The Agile 50 list, an initiative small-scale experimentation (e.g. sandboxes)
by Apolitical and the World Economic Forum has proven fruitful for policy development, it
Global Future Council on Agile Governance, tends to involve a small number of market
shares the contributions of such leaders.203 actors. The next stage is to establish
“scaleboxes” – as recommended by the Kalifa
– Establish designated innovation fields. Review of U.K. Fintech – where experimentation
Fostering experimentation is important to can occur in the market with consumers and
shifting from a “set-and-forget” to a “test-and- focus on growth.204

Integrating partnership models – New public-private partnerships. Public-

private partnerships are evolving by
incorporating increased risk sharing, data
Multistakeholder collaboration is at the core of sharing and insight sharing, moving from
agile governance. It is critical to engage all relevant consultation to joint efforts to shape
stakeholders – from developers and users to responsible technology ecosystems. These
regulators – to foster knowledge exchange for partnerships exist along the spectrum from
the most optimal outcomes. These partnerships communities involved in early-stage innovation
are tools for deploying agile governance. to larger companies.

Strategies for operationalizing this pathway include: – International regulatory cooperation.

Digital technologies know no borders.
– Joined-up regulation. Emerging technologies Governments should collaborate internationally
can be managed using a “whole-of-government” on regulating innovation by sharing knowledge
approach that promotes coordination across and pooling resources. The Agile Nations,
regulators to streamline processes and drive of which the World Economic Forum is an
consistency, especially for industries that may observer, seeks to drive intergovernmental
report to several authorities. regulatory cooperation.205

Future Focus 2025 97

 Designing digital-ready policies – Scan the horizon for future trends. Recent
developments should be considered to
extrapolate how they may evolve. For example,
Digital-ready policies are created with digital what would make policies ready to manage
developments in mind to ensure they are future- the metaverse?
proof and equipped to deal with the impact of
technological advances and digitalization. – Expand capacity of policy-making institutions.
At a minimum, relevant stakeholders must
Strategies for operationalizing this pathway understand current technology and take
include: advantage of new technological capabilities in
their policy-making methodology.
– Assess the readiness. Existing and new rules
must be reviewed to determine whether they can
be implemented using the latest technologies.

Emerging Deploying technology in support – Foster government-driven consistency.

technologies Even when governments do not have a direct
of regulation regulatory role, they can foster consistency
hold significant
potential to and clarity for voluntary mechanisms. This
Regulation and reporting represent a large includes enhancing public risk management and
improve regulatory
investment for businesses. Emerging technologies government frameworks, as well as providing
processes, but
hold significant potential to improve regulatory public data (see “Reuse data”). For example,
they are currently processes, but they are currently underused. government-driven consistency in ESG reporting
underused. can help limit the potential of greenwashing.
Strategies for operationalizing this pathway include:
– Reuse data. Instead of business needing
– Invest in regtech. The Global Future Council on to establish duplicative data collection and
Agile Governance is developing use cases and a measurement for compulsory and voluntary
roadmap for using regtech to improve processes regulation, authorities can enable business to use
for heavily regulated industries. This will help public databases (with appropriate safeguards)
governments and business to understand why to help shape digital governance. This can
and how they can apply emerging technologies decrease ambiguity and increase consistency of
to regulation, for example through machine- reporting with comparable and verifiable data.
readable code or natural-language processing.

Future Focus 2025 98

4.3 Artificial intelligence
for humanity
Equity and inclusion must be addressed
throughout the AI life cycle.

In response to the growing backlash against Three areas to address include:

harmful applications of AI systems, industries,
governments, academics and civil society
representatives have created numerous resources – Skills and knowledge gaps. Under-
to encourage the responsible development represented groups receive less information
and use of AI across sectors and geographies. about AI, creating a barrier to entry for
While the long-term impact of AI – especially advanced degrees, jobs, and economic growth.
on marginalized groups – is yet unknown,
engagement in design and policy development – Entrenched bias. AI systems and related
is largely absent in communities most directly public policy designed by homogeneous
affected by automation and other AI applications. groups fail to account for adverse impacts of
A new blueprint for conceptual design, the technology’s use in the broader world.
programmatic development and governance of AI
is needed to include diverse perspectives at the – Rapid digital transformation. Companies
table and mitigate risk of harm in deployment. adopt strategies without proper governance
of training, testing and deployment to promote
safe, equitable and inclusive practices.

Equity and inclusion must be addressed in every

corner of the AI life cycle to ensure that the
development and use of AI technologies serve all
of society.

Future Focus 2025 99

 Vision 2025

Increasing representation Ensuring equitable outcomes

Given the reach of AI, it is critical to ensure Given the potential for AI systems to affect all lives, it
individuals and communities have a basic is critical that these systems employ fair processes
understanding of AI, are protected from algorithmic and produce equitable outcomes. This can be
bias, and are able to benefit from AI’s myriad supported by appropriate training, business practices,
benefits. A more representative AI ecosystem will regulations and tools, such as comprehensive
prioritize responsible technology, demystify AI impact assessments of proposed systems.
and harness innovation to contribute to a more
equitable world. Technical solutions for bias and fairness

Access to knowledge – Ensure that explainability, transparency,

robustness, bias and fairness principles are
– Governments should mandate accessible AI/ integrated into programming standards,
tech literacy programmes in diverse languages protocols, logic and encryption.
for all citizens, with greater attention on more
heavily affected communities. – Ensure cloud platforms and stacks are upgraded
appropriately to address bias and fairness.
– Companies should offer mentorship and
continuous skills development programmes. – Define success and measure progress through
specific key performance indicators (KPIs).
– Society should gain greater awareness of
potential harm, and understanding of when and Holistic approaches to promoting fairness
how AI is used.
– Ensure equitable access to infrastructure.
Equity and diversity at the decision-making level
– Ensure that data are produced and code is
– The global South should be recognized as signed by impacted communities.
having an equitable stake in the design,
development and financial return of AI. – Obtain informed consent from users of the AI
systems, and make options for redress and
It is critical to – Decision-making bodies should be diverse in debate available.
ensure individuals composition and implement best practices
and communities in inclusion throughout the AI life cycle.
have a basic Deploying AI benefits for all
Opportunities for consultation
understanding of stakeholders
AI, are protected – Design, development and use should involve
from algorithmic all stakeholders, especially women, girls, What is considered beneficial in one community
bias, and are able people of colour, persons with disabilities, may be considered harmful in another. Seemingly
to benefit from AI’s displaced populations and other under- innocuous pieces of personal information in
myriad benefits. represented groups. AI applications can be damaging if used for

Future Focus 2025 100

misinformation campaigns or government control Benefits of AI are known, accessible and
of citizens. It is crucial that the provision of data or shared across social groups
use of AI is made explicit along with a technology’s
proposed benefit. Companies should enable users – Benefits of AI are clearly articulated to
to opt out of an AI system if its proposed benefit is stakeholders.
not valued by users, or if potential harms are seen to
outweigh benefits. – Stakeholders have access to AI social
entrepreneurship programmes.
AI is developed and used with a beneficial
purpose in mind AI is beneficial even to groups without a voice

– Socially beneficial use cases are clear. – AI development prioritizes a transgenerational

focus to benefit and not harm youth or future
– Indigenous governance, traditional knowledge generations, in alignment with human rights
and perspectives of marginalized groups are and the SDGs.
integrated into organizational and technological
decision-making. – AI’s effect on the environment is measured
and minimized.
– Alternative options are available to stakeholders
who prefer to opt out of AI use.

Future Focus 2025 101

 Pathways to Vision 2025

Breaking linguistic barriers Expanding education and

training opportunities
Most of the information on emerging technologies
is written in English, which creates a barrier of AI impacts everyone, yet few specialists have
entry to AI jobs and monocultural AI products and the requisite knowledge and training. Education
policy, both of which serve to limit the beneficial systems, public entities and businesses must
opportunities of the technology. promote the acquisition of skills and competencies
required for an AI-powered society. This will
Strategies for operationalizing this pathway include: stimulate innovation and new ways of seeing,
valuing and using AI.
– Place linguistic diversity at the core of AI
strategy. As access to knowledge depends Strategies for operationalizing this pathway include:
on language, give precedence to non-English
educational opportunities as the foundation of – Embrace a holistic approach. Formal and
national or corporate AI strategies, and provide informal educational communities integrate
more visual messaging. AI learning, regardless of school, company
or socioeconomic status, in culturally
– Enable shared vocabulary across appropriate ways.
Education stakeholders. Encourage interaction and
systems, public collaboration across developers, business teams, – Make AI education engaging.
civil society and consumers to ensure the entire Straightforward, exciting and engaging
entities and
AI ecosystem uses a shared vocabulary. education, integrated into arts and humanities
businesses must pedagogy, will contribute greatly to increasing
promote the – Improve technical capabilities in various diversity in the AI ecosystem.
acquisition of skills languages of AI technologies. Leverage and
and competencies expand on technological advances in translation – Implement role-specific training on AI
required for an AI- through expanded training sets and funding of fairness. Employees in all departments
powered society. AI-based text recognition in new languages. should receive basic information on what AI

is, what it can and cannot do, and how they – Apply a systems-thinking approach. The
can influence outcomes. The World Economic potential unintended consequences of AI
Forum White Paper entitled “A Holistic Guide technologies should be mapped out, moving
to Approaching AI Fairness Education in away from a transactional view that positions
Organizations” offers recommendations on businesses and innovators at the centre of
how to implement this.206 technology agendas, conversations and
development.
– Reach the public sector. Supporting
education improvements in the public sector is – Encourage continuous learning. AI education
essential to ensure good AI governance and the is accessible and encouraged from grade
implementation of responsible AI policies. school through professional education in a
range of formats, including certifications.

Future Focus 2025 102

 Building vital AI infrastructure additional resources will be needed to transmit
information from paper to digital storage.

Private- and public-sector actors must co-develop – Establish feedback channels for impacted
critical infrastructure, from data storage to fora stakeholders. Creating opportunities for
for dialogue with diverse sectors. This foundation increased communication between AI creators
will enable nations currently lagging in AI maturity and consumers will be important, as will
to leapfrog ahead, both in their economy as well communicating ways in which feedback has
as their efforts in governance. It would also offer resulted in changes to the AI system. It is also
companies universal consumer engagement important to empower facilitating organizations
to help shape and improve AI systems. (e.g. consumer groups) and to offer opportunities
for redress.
Strategies for operationalizing this pathway include:
Private- and – Empower the participation of stakeholders
– Prioritize the set-up of AI infrastructure in decision-making. Rather than passive
public-sector
to fully deliver impact to all communities. community participation as currently employed
actors must co- National governments, together with cloud (often part of user experience [UX] testing), an
develop critical providers and chipset companies, lead on “inclusive by design” methodology should be
infrastructure, from infrastructure and data training projects to embraced. Impact assessment tools should
data storage to fora facilitate communities receiving the benefits of be deployed wherever possible and an agile
for dialogue with AI. This will be particularly crucial in countries approach to feedback adopted, including via
diverse sectors. lacking robust electronic data storage, where social media.

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4.4 Media, entertainment
and sport
With almost 4 billion users consuming media,
entertainment and sports content daily, these
sectors have enormous potential to influence
people’s perspectives and livelihoods.

Several trends are accelerating the media – Metaverse. The metaverse refers to a set
industry’s role in shaping the world: of concepts and trends that, some experts
believe, represent the next major computing
– Digital safety. Harmful content, conduct and platform. Central to the idea is extended
contact have proliferated online and pose reality (XR), defined as “a combination
huge risks to all internet users, particularly of augmented, virtual and mixed reality
vulnerable groups such as children. Social environments that are accessible and
platforms have made it easier to create and interactive in real time”.207 When combined
distribute all types of information, but this has with blockchain applications, XR could
also resulted in harmful and illegal content. blend the physical and digital worlds to
increasing degrees, enabling new forms of
– DE&I. The decisions people make about how social and commercial interaction, creativity
they create content, whose stories they share and value creation. This hybrid environment
and what narratives and perceptions they shape – the metaverse – may eventually become
will have a lasting impact on society. Advancing an extension of the real-world economy,
DE&I in media and entertainment is crucial to transforming consumer experiences and
creating a more equitable, just society. business models across industries.

Future Focus 2025 104

Vision 2025

Advancing digital safety and security online as well as delineating

responsibilities between the public and
private sectors.
Mechanisms and tools for public-private
cooperation: – There is an agreed upon risk-based framework
for the optimal use of interventions, such as
– Stakeholders define harmful content differently; content removal and account suspensions.
areas such as hate speech, sexual exploitation
and misinformation are not understood uniformly – An industry‑wide accepted measure of user
across platforms and national jurisdictions. safety on digital platforms exists.

– Regulators, companies and other stakeholders

need to productively tackle these challenges in a Ensuring diversity, equity and
collaborative way and address underlying safety
tensions and trade-offs.
inclusion in media

Industry accountability and effective regulation: Accurate portrayals in content:

– Industry accountability and oversight are currently – In-content diversity is directly seen, heard or
lacking: no comprehensive third-party auditing experienced by the audience. Measurements
processes and practices to evaluate accuracy or may focus on the number of diverse characters
the effectiveness of content moderation practices and their time on-screen, or portrayals or the
and policy enforcement exist. stereotypes that are challenged or perpetuated.

– Regulatory schemes are no longer fragmented – Diverse characters and fair portrayals allow
national approaches that increase cost, audiences to hear their stories being told in an
complexity and uncertainty for businesses, authentic manner. Ads, games, videos and other
especially smaller players. Alignment on a global forms of media can have harmful unintended
or multi-jurisdictional regulatory framework has consequences when they portray groups
significantly helped in this regard. in a certain way or reinforce stereotypes.

Safety principles to guide trade-offs, Diversity and representation in creative roles:

interventions and measures:
– Creative diversity is vital to creating content
– Alignment on common digital safety principles that reflects the lived experiences of diverse
is fundamental to shape policies and processes audiences. It is important to assess who is
for balancing safety, privacy, free expression creating the content, who is greenlighting it,

Future Focus 2025 105

 and what cultures exist around that content to way, transforming consumer experiences, value
meaningfully measure how the output reflects creation and business models across industries.
its audiences.
The World Economic Forum Global Future Council
Measurement and transparency: on Media, Entertainment and Sport supports efforts
in two areas:
– This requires the ability to measure DE&I impact
based upon data and transparency from – The governance of extended reality (XR).
organizations. An objective and neutral service This involves working on policy frameworks for
to measure the state of diversity in the industry XR systems; promoting equity, inclusion and
is critical for benchmarking and assessing accessibility; ensuring economic opportunity
success and opportunities for improvement. and interoperability while preserving user
privacy; and reducing potential harms in
– Audience sentiment is an effective metric for immersive environments.
successful representation as it can be influenced
and assessed quickly. – Value creation in the metaverse. This involves
defining how assets are designed, advertised,
Governance and value creation in marketed and sold; mapping value chains, IP
and investment models and trends influencing
the metaverse the landscape; realizing the potential of the
creator economy; identifying incentives and
Several fundamental technologies come together risks in developing the metaverse; and analysing
in an integrated, interoperable and inclusive the metaverse’s impact on society and culture.

Pathways to Vision 2025

Harnessing public-private 1. A global charter of principles for digital

safety: Designing underlying principles and
cooperation to advance responsibilities for governing digital safety
digital safety across the public and private sectors,
guiding decision-making that requires
Advancing public-private cooperation on tackling balancing privacy, safety and security
harmful activity online will be critical as current
measures do not effectively attribute accountability 2. A toolkit for digital safety interventions:
to the relevant players in the ecosystem. Exploring digital safety interventions as well
as preventative measures across the public
Strategies for operationalizing this pathway include: and private sectors; outlining appropriate
usage based on various risk factors
– Join the Global Coalition for Digital Safety.
This coalition aims to “accelerate public-private 3. New measures and standards for
cooperation to tackle harmful content online and protecting vulnerable groups online:
exchange best practices for new online safety Identifying mechanisms that are particularly
regulation, take coordinated action to reduce used to target vulnerable groups, and
the risk of online harms, and drive collaboration drive international standards in addressing
on programmes to enhance digital media these successfully; outlining more effective
literacy”.208 The coalition is working towards: measures to assess how safe users are

Future Focus 2025 106

 Advancing on a given product or service, particularly demographics can be prominent measures
public-private given that current measures do not capture of the DE&I footprint. The taskforce has
outsized harm to vulnerable groups developed a Diversity Representation Maturity
cooperation on
framework to instil a clear, well-defined
tackling harmful
– Ensure digital safety and protection by structure around the components that
activity online design in the metaverse/Web3. As the constitute effective diversity and inclusion in
will be critical exploration of how to operate safely in the the media and entertainment industries.209
as current metaverse progresses, it will be imperative to
measures do not consider digital safety components from the – Use the cross-sector index. Building on the
effectively attribute outset to create safe online spaces and avoid Diversity Representation Maturity framework,
accountability replication of existing safety limitations in Web2 a cross-sector index that measures audience
to the relevant and social media. sentiment and demographics can be used
players. to compare the attitudes and behaviours of
diverse identity groups. This index will help
Improving diversity and to enable the adoption of best practices and
develop insights into where progress is lacking.
representation in content and Refreshing it periodically could illustrate the
creative production collective progress and impact by sector. The
first Audience Representation Index serves as a
Strategies for operationalizing this pathway include: baseline for the industry to better measure and
advance the state of diversity and inclusion.210
– Join the Power of Media taskforce and
follow guidance for improving measurement, – Prioritize inclusivity in the metaverse. The
transparency and accountability. Diversity generation leading the growth on the metaverse
data from companies can be aggregated will not tolerate non-inclusive creative content.
and published to create a sense of urgency Intentionality, transparency and accountability
and internal pressure for other organizations. are critical to truly represent audiences and
The companies that voluntarily report their empower creators in the metaverse. The
diversity data can gain the trust and favour of optimism on DE&I needs to be acknowledged
consumers and investors. A common set of to create an inclusive environment in the
metrics and goals across sectors can help to metaverse, where organizations will need to
hold all players accountable. It is widely agreed lead by example to create an equitable future
by the taskforce that audience sentiment and enabled by technology and innovation.

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4.5 Quantum computing
The path to scalable, commercial
quantum computers will become
increasingly clear in the next five years.

The potential of quantum science and technology – Emerging market for first-generation
could be as transformative as semiconductors noisy intermediate-scale quantum (NISQ)
in the 20th century, with massive economic computers. This is driven by early adoption
impact in sectors ranging from information and and experimentation across the public sector
communications technology to healthcare, for and industries.
example. The technology is in its early stages, with
many options for underlying platforms. Due to this The path to a scalable and commercial quantum
emerging state, the road ahead is uncertain. computer will become increasingly clear in the
next five years. Many system improvements are
Three key trends are bound to drive the rapid change expected, including a sizeable increase in the
and require action from the international community: number of qubits and better error-correction
techniques. Algorithms for use cases are under
– Rapid growth in venture financing and large development for hybrid quantum-classical
public (state) investments. This will lead to high systems, and numerous tools for the supporting
expectations, strong competition for talent, and quantum infrastructure stack are emerging. As
economic and geopolitical policy interventions. quantum computing holds potential to redefine
power structures, the international community
– Growing quantum ecosystems. University- should act now to guide it in a responsible way
affiliated ecosystems will continue to drive rather than exacerbate geopolitical tensions.
hardware, software and application development.

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 Vision 2025

Developing commercial This means all governments, companies and

individuals are treated fairly and equally while
applications and quantum protecting the intellectual property (IP) of all
solutions parties. In turn, it requires a robust supply chain for
components, as well as competitive and accessible
A bold vision for 2025 includes a clear pathway (open-source) software with clear standards
towards a viable demonstration of quantum and benchmarks so that competing hardware
advantage, wherein a quantum computer solves and software can be meaningfully compared.
an application of interest cheaper, faster or more This could include as diverse a set as materials,
accurately than a classical computer. The first equipment for fabrication, the key quantum
demonstrations of potential quantum-computer- components, control electronics and cryogenic
enabled results that are beyond the capabilities of equipment, and software layers and algorithms.
the highest-performing classical computers will be
achieved. A pathway towards a proof-of-concept To enable this, a coalition of like-minded countries
contributing quantum computing solutions to signs a “Quantum Act” with a governing framework
global problems – for example, modelling climate for collaborative research and development, export
change or finding new materials to use in the controls, talent development and exchange, with
energy transition – leads to a future where quantum the necessary funds and organization to support
computing will become a necessary part of all implementation. The goal is broad trade
computing frameworks. agreements between nation states and international
markets that foster trust, transparency and equity
To achieve this, the availability of the relevant and that encourage technology access for
algorithms as well as the necessary near-term countries of all economic statuses. Specific
quantum hardware and supporting classical roadblocks that prevent international collaboration
infrastructure, is required. At that time, end users and the free flow of ideas and scientific know-how
will be positioned to scale the achieved proofs should be overcome.
of concept(s) and further reinvest to enable
other demonstrations.
Defining common ethical standards
on the use of quantum computing
Reaching the quantum
advantage through a trusted The transformative potential of quantum computers
ecosystem and community accelerates the need to anticipate and define
common ethical standards that will frame the
The Vision 2025 In this vision, international tension related to future use of these machines. This is foreseen as
is to create an critical technologies exists due to economic a key area of work for the next several years.
open, trustworthy competition and geopolitical manoeuvres that
and fair global undermine fair and open competition. A growing Before 2025, representatives from the quantum
marketplace consensus emerges that quantum computing computing industry, research organizations and
will create value as progress continues to shift different governments meet and reflect on the core
that provides an
from basic research to commercial developments ethical foundations of the technology. A constructive
ecosystem for in established companies and new start-ups. dialogue leads to regional and even international
robust competition consensus on ethical use principles, such as
for both the The Vision 2025 is to create an open, trustworthy accessibility, equality, inclusiveness, transparency,
development and and fair global marketplace that provides an accountability and the common good. Consensus
use of quantum ecosystem for robust competition for both the also extends to inappropriate use made possible by
computers. development and use of quantum computers. the future use of quantum computers.

Future Focus 2025 109

Pathways to Vision 2025

Increasing the number of workforce about standards, benchmarking and

new areas of the field.
quantum learners
– Educate the future workforce. Efforts to
To meet the needs of the growing quantum expand education include increasing the
computing industry and accompanying basic number of undergraduate and graduate
research, a larger workforce is necessary programmes offering courses in quantum
worldwide. This requires training a new cohort computing, as well as introducing quantum
of quantum specialists, including current computing basics in secondary education.
professionals and future graduates. Efforts should
be made to encourage diversity and inclusion. – Attract a broad and diverse workforce. Vital
to ensuring fair, excellent quantum products
Strategies for operationalizing this pathway and services that cater to global communities,
include: this can be achieved with outreach programmes
in secondary and post-secondary education,
– Equip the current workforce. This involves online platforms and courses that can reach a
fostering open science and exchange global and diverse audience. Targeted initiatives
programmes and establishing dedicated to increase diversity (especially gender) and
training programmes to teach the current inclusiveness can also be part of this strategy.

Investing strategically for – Align investment strategies. Public- and

private-sector investments should be balanced
optimal growth by allocating government funding in broad
infrastructure projects, long-term research and
To support a sustainable framework for growth overarching societal use cases.
in quantum computing globally, resources
and activities from public- and private-sector – Foster cooperation between the public
entities must be optimally aligned. A reliable and private sectors. Public- and private-
overview of the global technology landscape, sector actors can increase their interactions,
as well as the coordination of public- and as academia and national labs bolster private
private-sector investment and activities, can industry development and pave the way for
lead to more efficient resource allocation and future ideas and innovations. This also helps
an acceleration of the technology and its use. enable a cohesive and collaborative global
ecosystem with room for protecting IP.
Strategies for operationalizing this pathway
include: Establishing a framework for
– Monitor the global technology landscape.
international collaboration
Neutral positional papers (“State of
Quantum report”) should be produced that To help global industry and markets develop and
document existing global national quantum support common goals and values, it is imperative
investment strategies as well as industry to start building the framework and governing
development roadmaps, and identify principles for this market now. A balance is
opportunities for optimal future investments. required between open science, the free flow of

Future Focus 2025 110

 talent and ideas, and the protection of shared Developing open-source
values, such as respect for IP arrangements
and responsible use of technology. To this end,
resources for standards and
existing bodies, such as standardization groups, software
will need to consider quantum computing as
part of their mission, and new frameworks To appropriately enable an ecosystem to harness
will need to be established to guide the quantum advantage in a fair and ethical way, it is
development of quantum computing systems. critical that parts of the quantum computing stack
are developed in open source.
Strategies for operationalizing this pathway
include: Strategies for operationalizing this pathway include:

– Establish a trusted community. A group – Create open access to quantum systems

of experts from academia, industry and over the cloud. Resource estimation for
government should be convened to serve as applications of interest should be transparent,
the initiators of the trusted community. This and open-source software communities need
group should implement tangible actions to help ensure equitable access and learning in
that accelerate the trusted community, quantum computing. Many existing open-source
such as membership models and screening projects in this space can be developed further.
To appropriately procedures for investors and companies.
enable an – Stimulate the development of open-source
ecosystem to – Establish an international coordinating quantum computing tools and software.
body. It should involve all major ecosystems Open-source software communities can
harness quantum
and initiate the actions needed, with a special help ensure equitable access and learning in
advantage in a fair
effort to include less advantaged countries and quantum computing.
and ethical way, it societies.
is critical that parts – Safeguard open science. A diverse and global
of the quantum – Create internationally accepted standards community of researchers should be maintained
computing stack and benchmarks. This will help to foster to build and investigate underpinning science,
are developed in transparency over the efficiency of available technology and applications of quantum
open source. hardware and software solutions. computing.

Future Focus 2025 111

4.6 Scientific collaboration
Global scientific collaboration is necessary
to tackle global challenges, from climate
change to health.

The COVID-19 pandemic demonstrates once Some barriers are put in place deliberately
more that global scientific collaboration is by governments to prevent contact with
necessary to tackle global challenges, from climate people from other countries. Some are by
change to health. Innovative solutions require coincidence, such as reduced mobility due
contributions from a diverse array of countries, to closed borders. All make it more difficult
disciplines, sectors and backgrounds to ensure for scientists to collaborate internationally.
access to the best talent, knowledge and data
available, and to a variety of perspectives. – Balancing fundamental and mission-driven
research. Most countries increasingly prioritize
Three trends in scientific collaboration stand out: mission-driven applied research. This favours
research focused on specific goals, such as
– COVID-19. The pandemic has disrupted many developing a COVID-19 vaccine, at the expense
aspects of research. As the world establishes a of open-ended, curiosity-driven basic research
“new normal”, there is an opportunity to decide that generates the fundamental knowledge to
which changes may improve the research fuel future mission-driven research.
system. The pandemic also provides lessons
for dealing with other shared global challenges, Approaches to these and other trends will shape
like global warming and cybersecurity. scientific progress for decades to come. They will
affect the type, quality and amount of knowledge
– Retreat from multilateralism. Reduced produced, who gets trained to produce it, the
collaboration between countries impedes level of technological innovation and, ultimately,
collaboration between their scientists. humanity’s ability to respond to future global crises.

Future Focus 2025 112

 Vision 2025

Ensuring scientific infrastructure – Pre-print servers allow free publishing and

access to papers but without pre-publication
and funding vetting, leaving it to the reader to evaluate a
paper’s quality.
Open science Science is a public good that relies to a large extent
is a crucial tool to on public investments in research to run laboratories – Open data repositories allow the direct
ensure scientific and train the next generation of researchers. sharing of data. A lack of standards for
progress across Scientists gravitate towards research for which these repositories, though, means that their
funding and infrastructure are available, making quality varies widely, and that data cannot
the world and thus
the development of scientific infrastructure and the easily be shared across different platforms.
reduce inequalities.
availability of funding two of the most direct ways to
influence the direction of scientific research. A proper Promoting scientific
balance between funding for mission-driven and for
fundamental research ensures both short-term and
communication and literacy
long-term scientific and technological progress.
Effective and transparent communication of
International collaborations currently face high scientific findings, from public lectures to Wikipedia
barriers to success, as most countries focus on edit-a-thons, can improve collaboration between
funding domestic research initiatives. A multilateral scientists and make science accessible to the
approach to scientific funding enables larger, more public. This brings new perspectives to scientific
ambitious projects that no single country can endeavours, allowing for thinking that more directly
accomplish alone. The economic fallout of COVID-19 addresses the needs of the wider community,
and reduced multilateral collaboration may spur from citizen science initiatives to industrial
governments to cut funding for international scientific partnerships. On the other hand, poor scientific
collaborations and projects. These decisions will communication can contribute to misinformation
jeopardize scientific progress, preparedness for and reduce trust in science. Developing scientific
future global crises and the scientific diplomacy literacy, through both the education system and
which arises from international collaborations. interactions between scientists and the public,
can help promote trust in and support for science,
and collaboration across sectors and borders.
Disseminating knowledge
Ensuring academic freedom
In order to collaborate, scientists must be able to
easily share their findings and data. While scientists
and integrity
have traditionally shared knowledge with one
another through peer-reviewed journal articles, Academic freedom and integrity are integral
high subscription fees make most of the journals to the pursuit of scientific research. It is not
inaccessible to scientists in lower-income countries. possible to conduct productive collaborative
Open science is therefore a crucial tool to ensure work where partners may lack the full right to
scientific progress across the world and thus reduce freedom of speech and opinion. The COVID-19
inequalities. Several platforms exist to circumvent pandemic gave rise to cases where public health
these limitations: measures were hindered by national pressure.
Climate change also provides examples where
– Open-access journals make their articles freely restrictions preventing government scientists from
available to readers without a subscription; talking about climate science slowed action.
researchers or their institutions, however, must
pay to publish in them.

Future Focus 2025 113

 Pathways to Vision 2025
Targeting scientific funding Key areas that warrant attention include
broad agreement on IP protection, regulatory
to support collaboration oversight, and data privacy protection.

Public-and private-sector funders, together with

government, must collaborate to develop a strategy Facilitating free movement of
to support both domestic and international science.
people and data
Strategies for operationalizing this pathway include:
Some types of collaboration must take place
– Create a long-term strategy for scientific in person, such as training personnel in teams
collaboration. Governments must work or using specialized facilities. Even remote
together to support international collaborative collaboration requires data sharing. This can be
research in an enduring manner. This strategy hindered by restrictions on sharing certain types
should be designed to resist changes in of data, for-fee databases, or by lack of access to
governments and the political climate. Key digital tools among some collaborators. Therefore,
elements include a plan to support durable facilitating the free flow of people is essential for
access to and sharing of high-quality data scientific collaboration.
and other scientific results, and infrastructure
investments, such as international labs and Strategies for operationalizing this pathway include:
research facilities enabling collaborative
research in different disciplines. – Lift travel restrictions. Within the current
context of managing the COVID-19 pandemic,
– Increase cooperation between restrictions on international travel must be
Governments governments and industry. Governments minimized. After the pandemic, all countries
should promote should promote the participation of industry must ensure the free movement of researchers
the participation in funding scientific collaborations. At the as a prerequisite for scientific collaboration.
of industry in same time, scientific endeavours should
funding scientific be transparent and free from undesired – Support open data. Removing legislative
collaborations. industrial, economic, and political influence. roadblocks to open data sharing and

supporting the necessary infrastructure to Improving public awareness of

ensure long-term access to data are essential
for scientific collaboration. The FAIR Guiding
and trust in research findings
Principles for scientific data management and
stewardship211 could provide a framework for Research organizations and governmental
this pathway. institutions and industry must work together to
support effective scientific communication with the
– Harmonize data-sharing protocols. Where public to foster trust and eradicate misinformation.
completely open access to data is not feasible,
countries can harmonize protocols for data Strategies for operationalizing this pathway include:
sharing so that scientists can access them
in a timely manner, no matter their location. – Protect the independence of scientific
This necessitates building a culture of trust institutions. Collaboration between scientific
and responsibility among the institutions and and government institutions is important
governments sharing data, including mutually- for addressing national and international
agreed arrangements on how countries can challenges and for implementing science-
share data and IP. based policies. Scientific institutions must

Future Focus 2025 114

 Research have the necessary independence from balanced representation of genders, a wider
organizations and governments, however, to promote scientific array of ethnicities and nationalities, and
governmental findings even when these do not support diversity in other areas of life, such as age,
institutions and their government’s policies and to advocate career stage, physical disability and field of
industry must work for policies in line with scientific findings. This study. In medical science, increased female
independence must be communicated to representation has led to more research into
together to support
the public to avoid association of scientific women’s health issues, improving the health
effective scientific
institutions with a particular government and of women and other people suffering from
communication the resulting politicization of scientific findings conditions like osteoporosis and migraines.
with the public and recommendations.
to foster trust – Support social science. Effectively translating
and eradicate – Increase diversity in scientific institutions. scientific findings into the real world requires an
misinformation. Increasing diversity – and particularly among understanding of the different social settings in
decision-makers within those institutions – which they will be applied. Science funders can
will bring a more diverse set of views to the promote this by supporting collaborations that
table when making decisions about research include social scientists who have knowledge
strategies and the allocation of funds. This of and connections to the communities where
includes representation of groups historically scientific knowledge is being created and
under-represented in science, such as a findings are being implemented.

Future Focus 2025 115

 4.7 Space
Accessing space for the benefit of the economy
and society on Earth is easier than ever.

New Space is facing accelerated change that is likely to – Geopolitics in outer space. Geopolitical rivalry
manufacturing persist through 2025 and bring significant benefits as is creating risk of conflict in orbit, posing enduring
approaches, well as challenges for humanity. New manufacturing risks to the space environment.
streamlined approaches, streamlined assembly and reusability
have lowered launch costs and spurred new rocket – Growing demand for global connectivity and
assembly and
companies, providing greater choice and lower prices Earth monitoring. Greater internet connectivity
reusability have
to access and use space. Mass-produced, affordable (particularly to underserved, remote areas) and
lowered launch and smaller satellites can be launched to perform the availability of Earth monitoring data are
costs and spurred meaningful missions and provide new services. prompting the development of new satellite
new rocket As a result, accessing space for the benefit of the constellations, especially within Low Earth Orbit
companies. economy and society on Earth is easier than ever. (LEO). This proliferation requires appropriate
regulatory approaches to prevent harmful radio-
The key trends creating a more active and crowded frequency interference, guarantee the long-term
space environment are: sustainable use of Earth orbits and ensure
security against cyberattacks.
– High levels of private-sector funding and
growing public-sector interest. Private-sector – Climate change. Earth monitoring data
investment and public-sector support enable collected from satellites will become even more
the buildout of significant infrastructure in abundant and crucial to providing possible
space, including commercial alternatives to the insights for the climate.
International Space Station, on-orbit space services
and missions to the Moon and cislunar space.

Future Focus 2025 116

 Vision 2025

Addressing space traffic – Further research, coordination, data collection

and sharing are also needed in the field of space
and debris weather and its impact on space assets.

A more congested space environment means Finally, increased space activity has environmental
safe operations and a sustainable environment for consequences on Earth, including from accelerated
future space development and operations must launch cadence (burning of rocket fuel) and disposal
be ensured. The problem becomes more acute of satellites (burning them in Earth’s atmosphere, the
as debris from high-altitude, anti-satellite weapons current practice of removing satellites from LEO).
tests further increases the risk of collisions in orbit,
reducing the projected lifetime of satellites and
negatively affecting space industry economics. Coordinating space-based data
Satellite innovation and large constellations intensify to better tackle the climate crisis
the need for jointly developed and widely adopted
norms of operation for space traffic interactions
Earth-sensing satellites enhance the understanding
between space actors around the world. This will
of earth science and the evolution of the planet’s
entail active and good-faith coordination among
climate, helping to measure relevant climate change
governments and the commercial operators licenced
indicators. Satellite measurements of air and sea
by them:
surface temperatures and of sea levels, as well as
other space-based observations, reveal important
– Scientific and technical progress is needed to
consequences of a warming planet. While satellites
better characterize the orbital debris and enhance
provide vital data, gaps remain in full understanding,
means to avoid collisions. modelling, mitigation, adaptation and coordination.
Multiple organizations conduct research into relevant
– Improved implementation of existing guidelines is climate change processes, but there is not yet
required, as well as new best practices, technical an organization dedicated to the continual and
Earth-sensing
standards and economic incentives to allow integrated development of this core modelling field –
satellites enhance
clearing debris from old missions. earth systems modelling – and to embedding results
the understanding
in a physical visualization environment that can inform
of earth science – With easy access to capital, new opportunities and help shape decision-making.
and the evolution exist for innovation in technology and techniques
of the planet’s to improve the space environment. But there is Beyond environment monitoring, space infrastructure
climate, helping to also the risk that unsustainable business plans plays a key role in supporting other ESG metrics.
measure relevant will be funded and that potential bankruptcies Data from space can help companies increase the
climate change could create new challenges of managing and efficiency of their operations and survey their overall
indicators. disposing of space assets. supply chains.

Future Focus 2025 117

 Ensuring a space-for-space such as space-based laser networks for inter-satellite
and Earth connectivity, multiple space stations and
economy and space resources habitats, in-orbit refuelling depots and advanced
satellite servicing. To ensure sustainable and
Space resource mining on the Moon or asteroids, beneficial development, the character of outer space
along with space-based solar power, represent long- as a global commons domain must be respected.
term opportunities with potential to provide materials Current national political and regulatory approaches
to construct space-based habitats and eventually to risk leading to disagreements among nation states
help address resource scarcity on Earth. A space- and may result in either lower investments due to
for-space economy starts to emerge, with services uncertainties or uncoordinated investments.

Pathways to Vision 2025

Encouraging sustainable – Encourage implementation of international

frameworks and best practices. Long-term
behaviour in space sustainability guidelines were adopted by the
United Nations Committee on the Peaceful Uses
Governmental and non-governmental actors of Outer Space (UN-COPUOS) and the UN
must further collaborate to address orbital traffic General Assembly and further work is ongoing,
and debris, as well as consider environmental while the UN First Committee recently adopted
consequences on Earth of increased space activity. a resolution on voluntary norms of behaviour.
With a lack of universally accepted and binding The International Institute of Space Law, the
comprehensive principles and norms in a fast- International Astronautical Federation and the
growing space economy in general, more is required International Academy of Astronautics joined
to ensure safe operations and make space activities in a trilateral, multidisciplinary effort to design
sustainable for future development and operations. a space traffic management approach. For the
past 12 years, the Space Data Association,
Strategies for operationalizing this pathway include: which convenes both public- and private-
sector satellite operators, has operated global,
– Establish metrics to measure the coordinated operational data sharing, improved
sustainability of space activities. The Space collision warnings, developed best practices
Sustainability Rating (SSR), developed by and identified capabilities for the next generation
an international consortium of partners, is a of space traffic management systems.
Governmental voluntary framework to encourage and provide
and non- incentive to operators to behave responsibly Additional global initiatives are needed to
governmental in space by increasing the transparency implement overarching frameworks that help
actors must further of organizations’ space environmental manage the space environment. For example,
sustainability and debris mitigation efforts.212 the World Economic Forum Global Future
collaborate to
The SSR will provide a space mission score Council on Space is preparing a concept for a
address orbital
measuring efforts to maintain a sustainable space sustainability monitor (SSM), which is a
traffic and debris, space environment, including debris mitigation tool to monitor, showcase and incentivize states’
as well as consider and alignment with international guidelines. implementation of international frameworks
environmental From 2022, an organization can obtain a and best practices to promote the safety
consequences on rating for their mission from the EPFL Space and sustainability of outer space activities. In
Earth of increased Center (eSpace) at the Swiss Federal Institute addition to getting information about a state’s
space activity. of Technology in Lausanne, Switzerland. willingness to apply different standards and

Future Focus 2025 118

 regulations, the SSM will also incorporate the expertise to conduct multidisciplinary science
notion of a space traffic footprint, which will and engineering research to monitor and
further encourage national actors to promote provide insights to manage climate change.
sustainable use of space by measuring the The creation of this facility, as well as of a
number of objects (active and in-active) in orbit. “digital twin” of Earth – a dynamic, digital
replica of the planet already being explored
– Incentivize operators to reduce orbital debris. by the European Space Agency and other
“Net-zero” or debris reduction incentives, fee organizations – will provide a powerful
schemes, or escrow funds could help to reduce symbol of the commitment to address these
the creation of space debris. Also, penalties for challenges today, and to serve as the Earth’s
littering and regulatory oversight for discouraging climate hub on behalf of future generations.
irresponsible behaviour and monopolistic
business practices are needed.
Developing the space-for-space
economy and harnessing space
Supporting the collation,
resources responsibly
management and analysis
of climate data The work of several organizations, such as the
newly formed intergovernmental Working Group
To harness the full potential of climate change data, on Exploration, Exploitation and Utilization of
To harness its management, analysis and integration need to Space Resources of the Legal Sub-committee
be improved. of UN-COPUOS, or the non-governmental
the full potential
Hague International Space Resources Working
of climate – Establish an agency that leverages Group, should be continued to further address
change data, its space technology and operations to and discuss the challenges of governance,
management, better support climate action. The Global technical safety and socio-economic benefits
analysis and Future Council on Space has developed that will come with the development of a robust
integration need a concept for an Earth Operations Centre and sustainable space-for-space economy,
to be improved. (EOC), a facility to leverage space data and including space resource extraction.

Future Focus 2025 119

 4.8 Synthetic biology
Synthetic biology develops tools and
frameworks that enable the purposeful
engineering of biology with greater precision,
predictability, sophistication and speed.

Broadening Over 4 billion years, biology has evolved countless – Emerging biostrategies. Countries, companies
biological data sustainable solutions, resulting in millions of and other organizations around the world are
sets and powerful species existing in ecosystems in harmony with focusing on advances in synthetic biology to
biological planetary resources. People have learned new help them recover from COVID-19 and to serve
engineering tools ways to interact with biology such that this inherent as an engine for new sustainable industries.
sustainability can be harnessed to develop new
are accelerating the
technologies that can benefit people and the – Platform-driven biosciences. Broadening
scope and scale of planet. If employed thoughtfully and responsibly, biological data sets and powerful biological
what is possible in synthetic biology applications can respond to engineering tools are accelerating the scope
the biosciences. the world’s social, environmental and economic and scale of what is possible in the biosciences.
needs, and help solve global challenges, including Those who steward data and technology
transitioning to a more sustainable future. platforms in bioscience have significant power in
this revolution.
Three key trends identified by the Global Future
Council on Synthetic Biology are: The last two decades of synthetic biology have
delivered new tools, approaches and communities.
– Growing bioeconomies. Advances in synthetic The challenge now is to develop the visions,
biology are enabling many valuable applications. pathways and partnerships that can realize the
Investment in bio-based technologies, industries vast promise of benefits in the decades to come.
and economies is growing rapidly, though
activity remains concentrated in a few regions.

Future Focus 2025 120

 Vision 2025

Building a bioeconomy for and helps to advance towards a world in which

everyone is entrusted and empowered to be a
everyone, everywhere biological citizen.

The potential benefits of synthetic biology are

diverse, but they must be developed and distributed Safeguarding global commons
equitably. The vision for 2025 is that every country,
including emerging and developing economies, has
and maximizing cooperation
the capacity to build a bio-based circular economy,
benefit from record investments and increase Bioscience data and technology infrastructures
sustainability across sectors using synthetic biology. comprise a valuable global commons and foster
Every country can unlock new forms of value improved cooperation across borders and sectors.
from their biodiversity; transition from polluting Industry, governments and civil society collectively
industries and practices to use more sustainable recognize the increasing power inherent in
bio-based solutions across manufacturing, energy ownership and control of these biological assets
and beyond; and innovate for the health and paired with the importance of developing and
well-being of local communities, including through distributing these assets and capabilities equitably.
new diagnostics, treatments and vaccines.
New public-private partnerships form to build
To encourage and sustain this transition towards shared knowledge repositories to enable global
bio-based economies, nations and regions are synthetic biology efforts. Shared digital sequence
launching mission-driven initiatives that embrace data and other knowledge commons help to fuel,
equitable forms of collaboration, consensus- shape and responsibly safeguard global synthetic
building and governance to work together across biology efforts. Investments in the technical
sectoral and geographic boundaries alike. These infrastructure for knowledge sharing are coupled to
initiatives demonstrate pragmatism and humility investments in the social infrastructure that guides
through a focus on understanding which challenges and supports its development and use. Education,
to prioritize, which of these challenges synthetic business development and policy engagement help
biology can usefully help address and which it drive leadership that connects technical, social and
cannot, and the timelines involved. policy issues. Such efforts empower millions of
The vision for new participants in synthetic biology research and
2025 is that every The tools, technologies and data capabilities technology development, boosting the likelihood
country has the emerging from these initiatives are shaped by all that the real potential of global innovation can be
capacity to build members of society for the benefit of all people and harnessed, scaling advances in synthetic biology,
a bio-based the planet.213 This aspiration informs strategy, policy decreasing costs and increasing access to
and practice at all levels, including in innovation and biologically-derived products and services.
circular economy,
regulatory policy as well as investment and benefit-
benefit from record
sharing arrangements. In this future, cross-border and cross-sector
investments collaborations are open, effective and, wherever
and increase Building these foundations involves recommitments possible, transparent. Working across geographies
sustainability from all people, organizations and nations to and ideologies, all people recognize that now is the
across sectors safeguard the shared biological future against time to collectively guide the trajectory of synthetic
using synthetic potential misuse. By protecting against biological biology development to maximize positive impacts
biology. threats, society allows peaceful purposes to flourish and safeguard shared biological futures.

Future Focus 2025 121

 Pathways for Vision 2025

Embedding key values in – Embed design thinking and a plurality

of perspectives in bioeconomy strategy
bioeconomy strategies development. Broad and early engagement in
strategy and policy development is essential to
If synthetic biology is to realize its potential to bring building values of equity, humility, sustainability
social, economic and environmental benefits, and solidarity into the technology.214 It is also
bioeconomy strategies and policies must be necessary to develop better metrics for value
guided by values supporting and safeguarding in innovation ecosystems and amplify under-
all people and the planet. Harnessing the talent represented voices in bioeconomy narratives.
needed to respond to global challenges requires
revisiting structures for resourcing and recognition. – Develop legal and financial tools that
Bioeconomy deliver investment to enable vibrant
Strategies for operationalizing this pathway include: bioeconomies globally. Financing
strategies and
arrangements that combine public- and
policies must be – Identify global challenges where synthetic private-sector financing to support social
guided by values biology could contribute to inclusive enterprises are needed. Risk assessment
supporting and solutions. Centring collaborations on specific techniques should incentivize a broad range
safeguarding foci, including the SDGs, climate change and of projects focusing on pragmatic outcomes.
all people and pandemic preparedness, could encourage Investment strategies should combine financial
the planet. sharing, comparing and collaborating. returns with measurable social impact.

Strengthening all geographies essential to providing effective frameworks

for solutions and ensuring local benefits.
of innovation
– Form equitable partnerships to enable
To reach the full potential of synthetic biology, geographic diffusion of synthetic biology.
the creativity and capability of the global research The products and services that emerge from
community must be leveraged, and the benefits synthetic biology should be responsive to
of synthetic biology must be delivered globally. societal and cultural differences. Partnerships
need to be established with all innovation
Strategies for operationalizing this pathway include: stakeholders, creating enabling conditions for
the technology to flourish in both local and
– Recognize and leverage strengths of global contexts.
geographic diversity. Value is derived from
genetic resources and talent sourced worldwide, – Increase local autonomy for research and
but innovation is concentrated in limited innovation. Local autonomy requires reduced
geographies. Greater benefit can be unlocked dependency on foreign funding, increased
if local populations participate in discovery capacity building and reduced scientific
and development. The Global South is under- dependency. This can be done by building
represented and should be further drawn in a qualified workforce and infrastructure,
both as developer and as beneficiary. Attracting, increasing local job prospects and ensuring
educating and developing people in developed that enabling technologies are readily available
countries is not enough: local innovation is to students, researchers, business executives

Future Focus 2025 122

 and regulatory agencies all over the world. of DSI and other tools and resources without
Partnering with organizations like the international future restrictions on use will enable innovation.
Genetically Engineered Machine (iGEM) This alleviates the need for complicated tracking
Competition can engage local communities and mechanisms while ensuring sustainability of
connect them with counterparts internationally. the resource and incentives for contributors.
Numerous tool and databases already exist;
linking these through a central source will
Building knowledge, tools and deliver benefits to all. The fund should be
financed by country members, industry and
data commons research communities.

The genetic code is a foundational toolset enabling – Develop a network of regional DSI producing
synthetic biology to solve global challenges. These centres. Part of the fund can establish a
resources, however, are not effectively connected centre devoted to sequencing local biodiversity
or accessible. Building a shared, global commons and curating knowledge critical to its use.
of digital sequence information (DSI)215 and other The investment can extend to establishment
resources will improve access and accelerate of biofoundries for innovation.
innovation. Making the knowledge, tools and
technologies to leverage DSI available through – Enhance biodiversity conservation and
Building a partnerships, databases and repositories will be build local communities. Long-term
shared, global critical. Establishing solutions that adhere to FAIR benefits of investment require supporting
data principles (Findable, Accessible, Interoperable, communities and environments. Focusing
commons of
Reproducible) can enhance equity and the regional centres on community development
digital sequence positive impact of DSI, tools and technologies. and conservation will enable them to
information and become nucleate points for activities.
other resources will Strategies for operationalizing this pathway include:
improve access These shared commons provide a framework for
and accelerate – Establish a global commons fund. A global delivering the values that should be embedded
innovation. fund devoted to the production and sharing in synthetic biology’s development.

Future Focus 2025 123

Contributors

World Economic Forum Production team

project team
Studio Miko
Knowledge Communities Unit Design and layout

Pablo Burkolter Fabienne Stassen

Lead, Knowledge Communities, Global Editing
Programming

Jaci Eisenberg
Head, Knowledge Communities, Global
Programming

Jeremy Packham
Specialist, Knowledge Communities, Global
Programming

Saadia Zahidi
Managing Director

Acknowledgements Equity and Social Justice

Elselot Hasselaar

The World Economic Forum would like to Fiscal and Monetary Policy
acknowledge the valuable contributions of Guillaume Hingel
the following people in the development
of this document: Human Rights
Ty Greene and Louise Thompson

Global Future Council managers Investing

Meagan Andrews

Advanced Manufacturing and Production Media, Entertainment and Sport

Maria Basso and Benjamin Schönfuss Hesham Zafar

Agile Governance Mental Health

Loren Newman Cameron Fox

Artificial Intelligence for Humanity Nature-Based Solutions

Emily Ratté Akanksha Khatri

Clean Air Net-Zero Transition

Roderick Weller and Shannon Engstrom Pim Valdre

Clean Electrification New Agenda for Fragility and Resilience

Kristen Panerali Andrej Kirn and Miriam Schive

Economic Growth and Recovery Quantum Computing

Attilio Di Battista Grigory Shutko

Education and Skills Responsive Financial Systems

Genesis Elhussein Kai Keller and Marie Penelope Nezurugo

Energy Transition Risk Resilience

Dominique Hischier Sophie Heading

Future Focus 2025 124

Scientific Collaboration Synthetic Biology
Greta Keenan Cameron Fox

SDG Investment Trade and Investment

Alessandro Valentini Aditi Sara Verghese

Social Cohesion and Just Transition Transparency and Anti-Corruption

Natalie Çilem Lisa Ventura and Houssam Al Wazzan

Space Work, Wages and Job Creation

Nikolai Khlystov Aidan Manktelow and Steffica Warwick

Sustainable Tourism
Lauren Uppink and Rosaline Mouget

Future Focus 2025 125

 Endnotes
1. World Economic Forum, “Global Future Councils” [website], https://www.weforum.org/communities/global-future-councils.
2. See World Economic Forum, Centre for the New Economy and Society, “Building Back Broader: Policy Pathways for
an Economic Transformation”, Community Paper, 2021, https://www3.weforum.org/docs/WEF_GFC_NES_Policy_
Pathways_for_an_Economic_Transformation_2021.pdf.
3. Ibid.
4. Ibid.
5. Mazzucato, Mariana, The Entrepreneurial State: Debunking Public vs. Private Sector Myths, Anthem Press, 2013.
6. Laplane, Andrea, and Mariana Mazzucato, “Socializing the risks and rewards of public investments: Economic, policy,
and legal issues”, Research Policy, vol. 49, Supplement, 2020, https://www.sciencedirect.com/science/article/pii/
S2590145120300025.
7. See World Economic Forum, “Building Back Broader: Policy Pathways for an Economic Transformation”, op. cit.
8. Ibid.
9. Ibid.
10. Ibid.
11. Ibid.
12. Ibid.
13. Ibid.
14. Ibid.
15. Farrell, Diana, Raghuram G. Rajan and Guillaume Hingel, “Building back broader: A new approach to fiscal and monetary
policy”, World Economic Forum, Agenda, 2 June 2021, https://www.weforum.org/agenda/2021/06/new-approach-fiscal-
and-monetary-policy.
16. See World Economic Forum, “Building Back Broader: Policy Pathways for an Economic Transformation”, op. cit.
17. Gopinath, Gita, “Managing Divergent Recoveries”, IMF Blog, 6 April 2021, https://blogs.imf.org/2021/04/06/managing-
divergent-recoveries.
18. Dabla-Norris, Era, et al., “Fiscal Policies to Address Climate Change in Asia and the Pacific”, IMF Departmental Paper No
2021/007, 24 March 2021, https://www.imf.org/en/Publications/Departmental-Papers-Policy-Papers/Issues/2021/03/24/
Fiscal-Policies-to-Address-Climate-Change-in-Asia-and-the-Pacific-Opportunities-and-49896.
19. Vivid Economics, Greenness of Stimulus Index, 2021, https://www.vivideconomics.com/wp-content/uploads/2021/02/
Greennes-of-Stimulus-Index-5th-Edition-FINAL-VERSION-09.02.21.pdf.
20. World Bank, Carbon Pricing Dashboard, 2020 update, https://carbonpricingdashboard.worldbank.org.
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22. Rees, Daniel, “What comes next? Recovery from an uneven recession”, Bank for International Settlements, BIS Bulletin
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31. International Monetary Fund (IMF), Fiscal Monitor: A Fair Shot, op cit.
32. Ibid.
33. World Economic Forum, The Future of Jobs Report 2020, Executive Summary, 20 October 2020, https://www.weforum.
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34. Dabla-Norris, et al., “Fiscal Policies to Address Climate Change in Asia and the Pacific”, op. cit.
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45. Segal, Mark, “PRI Reaches 4,000 Signatories as Interest in ESG Investing Proliferates Across Sectors and Regions”, ESG
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46. International Consumer Protection and Enforcement Network (ICPEN), “Screening of websites for ‘greenwashing’: half of
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49. 49 Weinberg, Andrew, “What to do about the shift from public to private markets”, World Economic Forum, Agenda,
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53. World Economic Forum, “Measuring Stakeholder Capitalism: Towards Common Metrics and Consistent Reporting of
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55. Hodgson, Tim, “Valuing natural capital is key to the future of investment. Here’s why”, World Economic Forum, Agenda,
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56. Williamson, Sarah, “Sustainability metrics: why it’s time investors look in the mirror”, World Economic Forum, Agenda,
1 October 2021, https://www.weforum.org/agenda/2021/10/sustainability-stakeholder-metrics-for-investors.
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58. Dunsire, Fiona, Stefan Dunatov and Suni Harford, “Why private companies need to catch up on sustainability”, World
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59. Weinberg, Andrew, “Why private-market investors need to accelerate their push for diversity”, World Economic Forum,
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60. CFA Institute, Future of Sustainability in Investment Management: From Ideas to Reality, op. cit.
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62. Ibid.
63. This section is based on World Economic Forum, “Global Future Council on Responsive Financial Systems: Three ways
to accelerate a digital-led recovery”, White Paper, 2021, https://www3.weforum.org/docs/WEF_GFC_Three_ways_to_
accelerate_a_digital_led_recovery_2021.pdf.
64. Carney, Marc, “Fifty Shades of Green”, International Monetary Fund, Finance & Development, vol. 56, no. 4, December
2019, https://www.imf.org/external/pubs/ft/fandd/2019/12/a-new-sustainable-financial-system-to-stop-climate-change-
carney.htm.
65. van Steenis, Huw, “A new phase for green investing”, Financial Times, 17 November 2021, https://www.ft.com/content/
c2937d7b-98f1-4179-823c-4a58e21f8e30.
66. van Steenis, Huw, and Alice Law Shing-Mui, “3 ways to accelerate a digital-led recovery”, World Economic Forum in
collaboration with Forbes, Global Agenda, 1 November 2021, https://www.weforum.org/global_future_councils/gfc-on-
responsive-financial-systems/articles/3-ways-to-accelerate-a-digital-led-recovery.
67. van Steenis, “A new phase for green investing”, op. cit.
68. African Development Bank Group, “MDBs’ climate finance rose to $66 billion in 2020, joint report shows”, 30 June 2021,
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69. World Economic Forum, “Building Back Broader: Policy Pathways for an Economic Transformation”, op. cit.
70. Dolan, Paul, et al., MINDSPACE: Influencing behaviour through public policy, UK Institute for Government, the Cabinet
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71. United Nations Conference on Trade and Development (UNCTAD), “Trade data for 2020 confirm growing importance of
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72. Ipsos, “World Opinion on Globalization and International Trade in 2021: Ipsos Global Advisor 25-Country Survey for
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73. Naas, Penelope, Pamela Coke-Hamilton and Nisha Taneja, “5 ways trade can support a gender-equal recovery”, World
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74. Johnson, Stephen, “Corruption is costing the global economy $3.6 trillion dollars every year”, World Economic Forum,
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75. 75 Based on World Economic Forum, “The Role and Responsibilities of Gatekeepers in the Fight against Illicit Financial
Flows: A Unifying Framework”, 2021, https://www3.weforum.org/docs/WEF_Gatekeepers_A_Unifying_Framework_2021.
pdf; see also, International Monetary Fund (IMF), “Corruption: Costs and Mitigating Strategies”, IMF Staff Discussion
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76. World Economic Forum, “The Rise and Role of the Chief Integrity Officer: Leadership Imperatives in an ESG-Driven
World”, White Paper, 2021, https://www3.weforum.org/docs/WEF_The_Rise_and_Role_of_the_Chief_Integrity_
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77. See World Economic Forum, “The Role and Responsibilities of Gatekeepers in the Fight against Illicit Financial Flows: A
Unifying Framework”, 2021.
78. World Economic Forum, “The Role and Responsibilities of Gatekeepers in the Fight against Illicit Financial Flows: A
Unifying Framework”, 18 June 2021, https://www3.weforum.org/docs/WEF_Gatekeepers_endorsement_list_2021.pdf.
79. United Nations Office on Drugs and Crime and World Bank, “Stolen Asset Recovery Initiative (StAR)”, https://star.
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80. See World Economic Forum, Global Future Council on Transparency and Anti-Corruption, “Hacking corruption in the
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82. World Health Organization, “Ambient (outdoor) air pollution: Key facts”, 22 September 2021, https://www.who.int/news-
room/fact-sheets/detail/ambient-(outdoor)-air-quality-and-health.
83. International Energy Agency (IEA), World Energy Outlook 2021, 2021, https://iea.blob.core.windows.net/assets/888004cf-
1a38-4716-9e0c-3b0e3fdbf609/WorldEnergyOutlook2021.pdf.
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85. Ibid.
86. Roelofsen, Occo, et al., “Plugging in: What electrification can do for industry”, McKinsey & Company, 28 May 2020,
https://www.mckinsey.com/industries/electric-power-and-natural-gas/our-insights/plugging-in-what-electrification-can-
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87. Climate Watch, “World Greenhouse Gas Emissions in 2018 by Sector, End Use and Gases”, op. cit.
88. Ibid.
89. International Energy Agency, World Energy Outlook 2021, op. cit.
90. Ibid.
91. World Economic Forum, Getting to Net Zero: Increasing Clean Electrification by Empowering Demand, Insight Report,
2021, https://www3.weforum.org/docs/WEF_Increasing_Clean_Electrification_by_Empowering_Demand_2021.pdf.
92. International Energy Agency, World Energy Outlook 2021, op cit.
93. Adler, Kevin, “Global CO2 emissions to rise by 4.9% in 2021: Global Carbon Project”, IHS Markit, 4 November 2021,
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proje.html.
94. Haselip, J. A. (Ed.), Scaling up investment in climate technologies: Pathways to realising technology development
and transfer in support of the Paris Agreement, UNEP DTU Partnership, 2021, https://backend.orbit.dtu.dk/ws/
files/263889473/2021_10_Perspectives_Scaling_up_investments_WEB_3.pdf.
95. Ibid.
96. See World Economic Forum, “Net-Zero Equity: Mobilizing Capital to Fight Climate Change”, Briefing Paper, 2021,
https://www3.weforum.org/docs/WEF_Net_Zero_Equity_Mobilizing_Capital_to_Fight_Climate_Change_2021.pdf.
97. 97 World Economic Forum in collaboration with BloombergNEF and Deutsche Energie-Agentur (dena), “Harnessing
Artificial Intelligence to Accelerate the Energy Transition”, White Paper, 2021, https://www3.weforum.org/docs/WEF_
Harnessing_AI_to_accelerate_the_Energy_Transition_2021.pdf.
98. 98 Bond, Kingsmill, et al., “Emerging markets adopt renewables”, IndiaWaterPortal, 19 July 2021,
https://www.indiawaterportal.org/articles/emerging-markets-adopt-renewables.
99. Carbon Tracker, “Reach for the Sun: The emerging market electricity leapfrog”, 14 July 2021, https://carbontracker.org/
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100. Saraiva, Joisa, and Victor, David G., “Rethinking global supply chains for the energy transition”, World Economic Forum,
Agenda 2022, 31 January 2022, https://www.weforum.org/global_future_councils/gfc-on-energy-transition/articles/
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101. US Department of State, “The Clean Energy Demand initiative (CEDI), Fact Sheet”, 4 November 2021,
https://www.state.gov/the-clean-energy-demand-initiative-cedi/#:~:text=CEDI%20creates%20a%20platform%20
to,retail%2C%20technology%2C%20and%20transportation.
102. See First Movers Coalition [website], https://www.weforum.org/first-movers-coalition.
103. World Economic Forum, “New Nature Economy Report Series”, 14 July 2020, https://www.weforum.org/reports/new-
nature-economy-report-series.
104. Ellsmoor, James, “Global Population Without Access To Electricity Drops By 400 Million Since 2010”, Forbes, 23 May
2019, https://www.forbes.com/sites/jamesellsmoor/2019/05/23/sdg-7-at-current-rate-2030-renewable-energy-goals-
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105. See World Economic Forum, “Scaling Investments in Nature: The Next Critical Frontier for Private Sector Leadership”,
White Paper, 2022, https://www3.weforum.org/docs/WEF_Scaling_Investments_in_Nature_2022.pdf.
106. Ibid.
107. Earth Overshoot Day, “About Earth Overshoot Day”, https://www.overshootday.org/about-earth-overshoot-day.
108. Sena, Kanyinke, “Recognizing Indigenous Peoples’ Land Interests Is Critical for People and Nature”, World Wildlife Fund,
22 October 2020, https://www.worldwildlife.org/stories/recognizing-indigenous-peoples-land-interests-is-critical-for-
people-and-nature#:~:text=By%20fighting%20for%20their%20lands,they%20have%20lived%20for%20centuries.
109. Farand, Chloé, “UN summit highlights $700bn funding gap to restore nature”, Climate Home News, 28 September
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climate/#:~:text=Nearly%2090%25%20of%20the%20world’s,UN%20Environment%20Programme%20(UNEP).

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111. United Kingdom Government, “World leaders summit on ‘Action on forests and land use’”, Policy paper, 21 January 2022
update, https://www.gov.uk/government/publications/cop26-world-leaders-summit-on-action-on-forests-and-land-use-
2-november-2021/world-leaders-summit-on-action-on-forests-and-land-use.
112. See World Economic Forum in collaboration with PwC, “Nature Risk Rising: Why the Crisis Engulfing Nature Matters for
Business and the Economy”, New Nature Economy series, 2020, https://www3.weforum.org/docs/WEF_New_Nature_
Economy_Report_2020.pdf.
113. Morgan Stanley Capital International, MSCI Emerging Markets ESG Leaders Index, 28 February 2022,
https://www.msci.com/documents/10199/c341baf6-e515-4015-af5e-c1d864cae53e.
114. Cone Communications, “2016 Cone Communications Millennial Employee Engagement Study”, 2016,
https://www.conecomm.com/research-blog/2016-millennial-employee-engagement-study.
115. See World Economic Forum, “Scaling Investments in Nature: The Next Critical Frontier for Private Sector Leadership”,
op. cit.
116. Curtis, Philip G., et al., “Classifying drivers of global forest loss”, Science, vol. 361, no. 6407, 14 September 2018,
pp. 1108-1111, https://www.science.org/doi/10.1126/science.aau3445.
117. Forest and Finance, “Financial Flows and Policy Assessments Key Findings”, 8 November 2021,
https://forestsandfinance.org/news/financial-flows-and-policy-assessments-key-findings.
118. See World Economic Forum, “Scaling Investments in Nature: The Next Critical Frontier for Private Sector Leadership”,
op. cit.
119. FAO, UNDP and UNEP, A multi-billion-dollar opportunity – Repurposing agricultural support to transform food systems,
2021, https://www.fao.org/documents/card/en/c/cb6562en.
120. See World Economic Forum, “Scaling Investments in Nature: The Next Critical Frontier for Private Sector Leadership”,
op. cit.
121. Ibid.
122. Ibid.
123. Science Based Targets, “More than 1,000 companies commit to science-based emissions reductions in line with
1.5°C climate ambition”, Press Release, 10 November 2021, https://sciencebasedtargets.org/news/more-than-1000-
companies-commit-to-science-based-emissions-reductions-in-line-with-1-5-c-climate-ambition.
124. International Energy Agency (IEA), Net Zero by 2050, 2021, https://www.iea.org/reports/net-zero-by-2050.
125. Hobley, Anthony Robert, Johanna Lehne and Rob van Riet, “How to deliver on climate pledges? Look at these
industries transitioning to net zero”, World Economic Forum, Agenda, 17 January 2022, https://www.weforum.org/
agenda/2022/01/net-zero-industrial-transition-climate-action.
126. See World Economic Forum in collaboration with Boston Consulting Group, Net-Zero Challenge: The supply chain
opportunity, Insight Report, 2021, https://www3.weforum.org/docs/WEF_Net_Zero_Challenge_The_Supply_Chain_
Opportunity_2021.pdf.
127. Hobley, Lehne and van Riet, “How to deliver on climate pledges? Look at these industries transitioning to net zero”, op. cit.
128. UNDP, SDG Investor Platform, “Gender Equality Isn’t Just A Number’s Game”, 8 March 2022, https://sdginvestorplatform.
undp.org/news/gender-equality-isnt-just-numbers-game.
129. Organisation for Economic Co-operation and Development (OECD), “Global Outlook on Financing for Sustainable
Development 2021 – A New Way to Invest for people and Planet”, 9 November 2020, https://www.oecd.org/publications/
global-outlook-on-financing-for-sustainable-development-2021-e3c30a9a-en.htm.
130. Kumar, Manmohan. S., et al., “Investing in Emerging and Frontier Economies: How Blended Finance can make the most
of public funding”, ILN Position Paper for COP26 and G20, in collaboration with The Rockefeller Foundation, 2021,
https://investorleadershipnetwork.org/wp-content/uploads/ILN_2021_InvestingInEmergingFronteirEconomies_Report_
v4.pdf.
131. Robins, Nick, Vonda Brunsting and David Wood, “Climate change and the just transition: A guide for investor action”,
Grantham Research Institute on Climate Change and the Environment, 2018, https://iri.hks.harvard.edu/files/iri/files/
jtguidanceforinvestors.pdf?m=1554219326.
132. See UN-convened Net Zero Asset Owner Alliance, “Scaling Blended Finance”, Discussion Paper, 2021, https://www.
greenfinanceplatform.org/guidance/scaling-blended-finance-un-convened-net-zero-asset-owner-alliance-discussion-
paper.
133. See World Economic Forum, “Reshaping Risk Mitigation: The Impact of Non-financial Levers”, White Paper, 2021,
https://www3.weforum.org/docs/WEF_Reshaping_Risk_Mitigation_2021.pdf.
134. United Nations World Tourism Organization (UNWTO), “International Tourism Growth Continues to Outpace the Global
Economy”, 20 January 2020, https://www.unwto.org/international-tourism-growth-continues-to-outpace-the-economy.
135. Addamo, Anna M., et al., EU Blue Economy Report 2021, European Commission, 2021, https://ec.europa.eu/oceans-
and-fisheries/system/files/2021-05/the-eu-blue-economy-report-2021_en.pdf.
136. World Travel & Tourism Council (WTTC), A Net Zero Roadmap for Travel & Tourism: Proposing a new Target Framework for
the Travel & Tourism Sector, 2021, https://wttc.org/Portals/0/Documents/Reports/2021/WTTC_Net_Zero_Roadmap.pdf.

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137. An example of such efforts is provided by the Global Sustainable Tourism Council (see GSTC, “Criteria Overview”,
https://www.gstcouncil.org/gstc-criteria) and by the Future of Tourism Coalition (see “About the Future of Tourism
Coalition”, https://www.futureoftourism.org/about-us).
138. The cases provided by Tourism Declares (see “Tourism Declares a Climate Emergency”, https://www.tourismdeclares.
com) and the World Travel & Tourism Council’s latest report on net zero (WTTC, A Net Zero Roadmap for Travel &
Tourism: Proposing a new Target Framework for the Travel & Tourism Sector, 2021, https://wttc.org/Portals/0/Documents/
Reports/2021/WTTC_Net_Zero_Roadmap.pdf) provide useful references.
139. See European Commission, “Sustainable blue economy: A new approach for a sustainable blue economy in the EU”
(https://ec.europa.eu/oceans-and-fisheries/ocean/blue-economy/sustainable-blue-economy_en), which provides an
example of how natural resources should be employed to mitigate climate change, in a circular way, to benefit the
tourism industry.
140. Ibid.
141. World Economic Forum, The Future of Jobs Report 2020, 2020, https://www3.weforum.org/docs/WEF_Future_of_
Jobs_2020.pdf.
142. World Economic Forum in collaboration with PwC, Upskilling for Shared Prosperity, Insight Report, 2021, https://www3.
weforum.org/docs/WEF_Upskilling_for_Shared_Prosperity_2021.pdf.
143. See World Economic Forum, “Building Back Broader: Policy Pathways for an Economic Transformation”, op. cit.
144. Samek, Manuela, et al., The effectiveness and costs-benefits of apprenticeships: Results of the quantitative analysis,
European Commission, 2013, https://www.employment-studies.co.uk/resource/effectiveness-and-costs-benefits-
apprenticeships-results-quantitative-analysis.
145. See World Economic Forum, “Building Back Broader: Policy Pathways for an Economic Transformation”, op. cit.
146. Ibid.
147. Ibid.
148. Ellyatt, Holly, “There are millions of jobs, but a shortage of workers: Economists explain why that’s worrying”, CNBC,
20 October 2021 update, https://www.cnbc.com/amp/2021/10/20/global-shortage-of-workers-whats-going-on-experts-
explain.html.
149. See World Economic Forum, “Building Back Broader: Policy Pathways for an Economic Transformation”, op. cit.
150. Ibid.
151. Zurich, “Zurich sees leap in women applying for senior roles after offering all jobs as flexible”, Press Release,
17 November 2020, https://www.zurich.co.uk/media-centre/zurich-sees-leap-in-women-applying-for-senior-roles-after-
offering-all-jobs-as-flexible.
152. See World Economic Forum, “Building Back Broader: Policy Pathways for an Economic Transformation”, op. cit.
153. Ibid.
154. United Nations, “Rising inequality affecting more than two-thirds of the globe, but it’s not inevitable: new UN report”, UN
News, 21 January 2020, https://news.un.org/en/story/2020/01/1055681.
155. See World Economic Forum, “Global Future Council on Mental Health”, https://cn.weforum.org/communities/gfc-on-
mental-health.
156. Carvajal-Velez, Liliana, et al., “Increasing Data and Understanding of Adolescent Mental Health Worldwide: UNICEF’s
Measurement of Mental Health Among Adolescents at the Population Level Initiative”, Journal of Adolescent Health, 2021,
https://rest.neptune-prod.its.unimelb.edu.au/server/api/core/bitstreams/ffb93764-f2df-5de9-b4d4-43744bbde63d/
content.
157. Azzopardi, Peter, et al., “Bringing a Wider Lens to Adolescent Mental Health: Aligning Measurement Frameworks With
Multisectoral Actions”, Journal of Adolescent Health, 2021, https://rest.neptune-prod.its.unimelb.edu.au/server/api/core/
bitstreams/8af69190-6c15-5615-9da3-aad7a10ef420/content.
158. See World Economic Forum in collaboration with Deloitte, “Global Governance Toolkit for Digital Mental Health: Building
Trust in Disruptive Technology for Mental Health”, White Paper, 2021, https://www.weforum.org/whitepapers/global-
governance-toolkit-for-digital-mental-health.
159. United Nations Children’s Fund (UNICEF), Prospects for children in 2022: A global outlook, 2022, https://www.unicef.org/
globalinsight/media/2471/file/UNICEF-Global-Insight-Prospects-for-Children-Global-Outlook-2022.pdf.
160. Figures are estimates from the United Nations Office for the Coordination of Humanitarian Affairs (UN OCHA) Global
Humanitarian Overview 2022: https://gho.unocha.org.
161. UNICEF estimates that 89% of all humanitarian funding goes to humanitarian needs, reducing the capacity and resources
available for development aid projects; see UNICEF, “The Humanitarian-Development nexus”, https://www.unicef.org/eu/
humanitarian-development-nexus.
162. Guay, Joseph, and Lisa Rudnick, “What the Digital Geneva Convention means for the future of humanitarian action”,
UNHCR, 25 June 2017, https://www.unhcr.org/innovation/digital-geneva-convention-mean-future-humanitarian-action.
163. United Nations Office for the Coordination of Humanitarian Affairs (OCHA), “The Humanitarian Implications of Cyber
Threats”, Virtual Session, 10 December 2021, https://www.unocha.org/sites/unocha/files/2021%20GHPF%20-%20
Concept%20Note%20-%20Cyberthreats%20Panel%20-%208%20December.pdf.

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164. Figures are estimates from World Bank Global Economic Prospects; see, also, World Bank, “People Peace Prosperity”,
Brief, 2 October 2020, https://www.worldbank.org/en/topic/fragilityconflictviolence/brief/people-peace-prosperity.
165. World Economic Forum, Global Future Council on the New Agenda for Fragility and Resilience, “Guidelines for
complementary action in fragile contexts”, https://www3.weforum.org/docs/WEF_Guidelines_for_complementary_action_
in_fragile_contexts.pdf.
166. Inter-Agency Standing Committee (IASC), “The Grand Bargain (Official website)”, https://interagencystandingcommittee.
org/grand-bargain.
167. Inter-Agency Standing Committee (IASC), “Greater Transparency”, OCHA, https://interagencystandingcommittee.org/
greater-transparency.
168. Inter-Agency Standing Committee (IASC), “A participation revolution: include people receiving aid in making the decisions
which affect their lives”, OCHA, https://interagencystandingcommittee.org/a-participation-revolution-include-people-
receiving-aid-in-making-the-decisions-which-affect-their-lives.
169. Inter-Agency Standing Committee (IASC), “More support and funding tools for local and national responders”, OCHA,
https://interagencystandingcommittee.org/more-support-and-funding-tools-for-local-and-national-responders.
170. Principles for Digital Development [website], https://digitalprinciples.org.
171. International Labour Organization (ILO), “Guidelines for a just transition towards environmentally sustainable economies
and societies for all”, 2015, https://www.ilo.org/wcmsp5/groups/public/@ed_emp/@emp_ent/documents/publication/
wcms_432859.pdf.
172. International Labour Organization (ILO), “Social dialogue: What is social dialogue?”, https://www.ilo.org/ifpdial/areas-of-
work/social-dialogue/lang--en/index.htm)%20%20a.
173. International Labour Organization (ILO), “ILO downgrades labour market recovery forecast for 2022”, News, 17 January
2022, https://www.ilo.org/global/about-the-ilo/newsroom/news/WCMS_834117/lang--en/index.htm.
174. See World Economic Forum, “Building Back Broader: Policy Pathways for an Economic Transformation”, op. cit.
175. International Labour Organization (ILO), World Employment and Social Outlook 2018: Greening with Jobs, 2018,
https://www.ilo.org/global/research/global-reports/weso/greening-with-jobs/lang--en/index.htm.
176. See World Economic Forum, “Building Back Broader: Policy Pathways for an Economic Transformation”, op. cit.
177. World Economic Forum, The Future of Jobs Report 2020, op. cit.
178. See World Economic Forum, “Building Back Broader: Policy Pathways for an Economic Transformation”, op. cit.
179. World Economic Forum, The Future of Jobs Report 2020, op. cit.
180. See World Economic Forum, “Building Back Broader: Policy Pathways for an Economic Transformation”, op. cit.
181. International Labour Organization (ILO), Global Wage Report 2020-21, 2020, https://www.ilo.org/global/research/global-
reports/global-wage-report/2020/lang--en/index.htm.
182. Betcherman, Gordon, “The challenges of regulating the labor market in developing countries”, World Bank, 26 August
2021, https://blogs.worldbank.org/jobs/challenges-regulating-labor-market-developing-countries.
183. Cengiz, Doruk, et al., “The Effect of Minimum Wages on Low-Wage Jobs”, The Quarterly Journal of Economics, vol. 134,
no. 3, 2019, pp. 1405-1454, https://academic.oup.com/qje/article/134/3/1405/5484905; Ahlfeldt, Gabriel, Duncan Roth
and Tobias Seidel, “The regional effects of Germany’s national minimum wage”, Economics Letters, vol. 172, no. C, 2018,
pp. 127-130, https://econpapers.repec.org/article/eeeecolet/v_3a172_3ay_3a2018_3ai_3ac_3ap_3a127-130.htm.
184. See World Economic Forum, “Building Back Broader: Policy Pathways for an Economic Transformation”, op. cit.
185. Ibid.
186. Ibid.
187. World Economic Forum in collaboration with Willis Towers Watson, “Human Capital as an Asset”, 2020, https://www3.
weforum.org/docs/WEF_NES_HR4.0_Accounting_2020.pdf.
188. International Labour Organization, Global Wage Report 2020-21, op. cit.
189. See World Economic Forum, “Building Back Broader: Policy Pathways for an Economic Transformation”, op. cit.
190. Ritchie, Hannah, and Max Roser, “CO2 and Greenhouse Gas Emissions by sector”, Published online at OurWorldInData.org,
2020, https://ourworldindata.org/emissions-by-sector#energy-electricity-heat-and-transport-73-2.
191. World Bank, “Manufacturing, value added (% of GDP)”, 2020, https://data.worldbank.org/indicator/NV.IND.MANF.ZS.
192. World Economic Forum, “Unlocking Business Model Innovation through Advanced Manufacturing”, White Paper, 2022,
https://www3.weforum.org/docs/WEF_Unlocking_Business_Model_Innovation_through_Advanced_Manufacturing_2022.
pdf.
193. World Economic Forum, “New Business Models enabled by Advanced Manufacturing”, https://www.weforum.org/
projects/new-business-models-enabled-by-advanced-manufacturing.
194. World Economic Forum in collaboration with Kearney, “Charting the Course for Global Value Chain Resilience”, White
Paper, 2022, https://www3.weforum.org/docs/WEF_Charting_the_Course_for_Global_Value_Chain_Resilience_2022.pdf.
195. World Economic Forum in collaboration with Kearney, “The Resiliency Compass: Navigating Global Value Chain
Disruption in an Age of Uncertainty”, White Paper, 2021, https://www3.weforum.org/docs/WEF_Navigating_Global_
Value_Chains_Disruptions_2021.pdf.
196. World Economic Forum, “Global Lighthouse Network”, https://www.weforum.org/projects/global_lighthouse_network.

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197. World Economic Forum, “Global Smart Industry Readiness Index Initiative”, https://www.weforum.org/projects/global-
smart-industry-readiness-index-initiative.
198. World Economic Forum, “New Generation Industry Leaders”, https://www.weforum.org/projects/new-generation-
manufacturing-leaders.
199. World Economic Forum, “Augmented Workforce Initiative”, https://www.weforum.org/projects/augmented-workforce-
initiative.
200. World Economic Forum, “Unlocking Value in Manufacturing through Data Sharing”, Projects, https://www.weforum.org/
projects/data-sharing-for-manufacturing.
201. World Economic Forum in collaboration with Boston Consulting Group, “Data Excellence: Transforming manufacturing
and supply systems”, White Paper, 2021, https://www3.weforum.org/docs/WEF_Data_Excellence_Transforming_
manufacturing_2021.pdf.
202. World Economic Forum, “Unlocking Value in Manufacturing through Data Sharing”, https://www.weforum.org/projects/
data-sharing-for-manufacturing.
203. Apolitical, “Agile 50: the World’s 50 Most Influential People Revolutionising Governance”, https://apolitical.co/list/en/
agile-50.
204. Srivastava, Arun, Nina Moffatt and Konstantin Burkov, “U.K. FinTech and Financial Services – Britcoin to the Scalebox;
the U.K. Government Announces Plans to Boost the FinTech Sector and to Develop a Digital Pound”, Paul Hastings,
29 April 2021, https://www.paulhastings.com/insights/client-alerts/u-k-fintech-and-financial-services-britcoin-to-the-
scalebox-the-u-k.
205. UK government, “Agile Nations”, https://www.gov.uk/government/groups/agile-nations.
206. World Economic Forum, “A Holistic Guide to Approaching AI Fairness Education in Organizations”, White Paper,
2021, https://www3.weforum.org/docs/WEF_A_Holistic_Guide_to_Approaching_AI_Fairness_Education_in_
Organizations_2021.pdf.
207. Hall, Stefan, and Cathy Li, “The Technologies That Could Make Up the Metaverse”, BRINK News, 1 November 2021,
https://www.brinknews.com/what-is-the-metaverse.
208. World Economic Forum, “Global Coalition for Digital Safety”, https://www.weforum.org/global-coalition-for-digital-safety/
about.
209. See World Economic Forum, “In-depth Study of Diversity and Representation Shows Scale of Opportunity in Media and
Entertainment Industries”, News Release”, 27 September 2021, https://www.weforum.org/press/2021/09/in-depth-
study-of-diversity-and-representation-shows-scale-of-opportunity-in-media-and-entertainment-industries.
210. See World Economic Forum, “World Economic Forum Launches Audience Representation Index to Provide Diversity,
Equity and Inclusion Scores in Media, Entertainment and Sport”, News Release, 8 March 2022, https://www.weforum.
org/press/2022/03/world-economic-forum-launches-audience-representation-index-to-provide-diversity-equity-and-
inclusion-scores-in-media-entertainment-and-sport.
211. Wilkinson, Mark D., et al., “The FAIR Guiding Principles for scientific data management and stewardship”, Scientific Data,
vol. 3, no. 160018, 2016, https://www.nature.com/articles/sdata201618.
212. World Economic Forum, “Space Sustainability Rating”, https://www.weforum.org/projects/space-sustainability-rating.
213. Chugh, Abhinav, “How can technological advancements in synthetic biology benefit everyone? An expert explains”,
World Economic Forum, Agenda, 24 November 2021, https://www.weforum.org/agenda/2021/11/synthetic-biology-can-
benefit-all-expert-explains-how.
214. Vickers, Claudia, et al., “Realizing the potential of synthetic biology to help people and the planet”, World Economic
Forum, Agenda, 5 April 2021, https://www.weforum.org/agenda/2021/04/synthetic-biology-potential-people-and-the-
planet-gtgs21.
215. World Economic Forum Global Future Council on Synthetic Biology, Global Commons Working Group, “Why sharing data
is crucial for progress in bioeconomy”, World Economic Forum, Agenda, 9 December 2021, https://www.weforum.org/
global_future_councils/gfc-on-synthetic-biology/articles/why-sharing-data-and-benefits-is-crucial-for-bioeconomy.

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