Conversations at the World Economic Forum: The Future of Sustainable Capitalism

The World Economic Forum (WEF) has become a critical venue for shaping the future of global economies. In recent years, one of the most significant shifts in the conversations held at WEF has been towards sustainable capitalism—a progressive model that balances profitability with environmental and social responsibilities.

This article explores the concept, its relevance in today's world, and how regions like Gujarat in India are emerging as torchbearers in this evolving landscape.

What is Sustainable Capitalism?

Sustainable capitalism is an economic system that focuses on creating long-term value by integrating environmental, social, and governance (ESG) criteria into decision-making processes. Unlike conventional capitalism, which often emphasizes immediate financial returns, sustainable capitalism considers the impact on a broader group of stakeholders including:

1. The environment (climate, biodiversity, pollution)

2. Society (workers, communities, consumers)

3. Governance (transparency, accountability, ethics)

Characteristics

The key characteristics includes:

1. Green Innovation: Prioritizing renewable energy and resource-efficient technologies.

2. Inclusive Growth: Ensuring equitable opportunities and reducing socio-economic disparities.

3. Corporate Responsibility: Transparency, ethical governance, and stakeholder engagement.

Why Is Sustainable Capitalism Important?

1. Environmental Urgency

Climate change, resource depletion, and pollution are threatening the planet. Sustainable capitalism fosters innovation and investment in clean energy, circular economies, and biodiversity conservation.

2. Social Expectations

Consumers and employees today expect businesses to play a proactive role in solving societal problems such as inequality, health, and education.

3. Investor Pressure

Major asset managers and institutional investors are increasingly directing capital toward companies with strong ESG credentials, seeing them as more resilient and future-proof.

Sustainable Capitalism at WEF

At WEF, key discussions revolve around:

1. Integrating sustainability into capital markets.

2. Encouraging public-private collaboration.

3. Redefining stakeholder capitalism.

4. Aligning business growth with the United Nations’ Sustainable Development Goals (SDGs).

Thought leaders like Paul Collier and Klaus Schwab advocate for a “new social contract” where capitalism serves people and the planet, not just shareholders.

Gujarat: A Regional Leader in Sustainable Capitalism

1. Gujarat Sustainability Summit 2025

Organized by the Gujarat Chamber of Commerce and Industry (GCCI), this summit was a first-of-its-kind initiative in the state. Over 30 ESG experts and corporate leaders convened to discuss:

1. Climate action

2. Green infrastructure

3. ESG reporting frameworks

4. The role of micro, small, and medium enterprises (MSMEs) in sustainability

2. Empowering MSMEs

Gujarat is home to over 3 million MSMEs. These businesses are being actively supported with training, funding, and digital tools to integrate sustainable practices into their operations.

3. Green Finance Innovation

Vadodara Municipal Corporation issued Asia’s first certified green municipal bond. It raised significant funds for sustainable urban infrastructure, especially in wastewater treatment—marking a major financial milestone for green innovation in India.

Bottom Line

The transition to sustainable capitalism is not just an ethical imperative—it is an economic one. As the world faces unprecedented challenges from climate change to social fragmentation, systems rooted in sustainability offer a path forward.

With states like Gujarat stepping up to integrate ESG principles across industries and governance, the blueprint for scalable and inclusive growth is becoming increasingly clear. The WEF continues to serve as a catalyst in these global conversations, advocating for capitalism that works—for everyone.

In case of any query regarding Conversations at the World Economic Forum: The Future of Sustainable Capitalism, feel free to connect with our legal experts, Tulja Legal, at +91 96380-69905

About the Author

Anju S Nair

Legal Researcher | LLB, MA English| Corporate Lawyer | Business Enthusiast | Founder & CEO at iLawbook.

FAQs

1. What is sustainable capitalism?

It’s a model of capitalism that integrates environmental, social, and governance (ESG) concerns into business and financial decisions.

2. How is it different from traditional capitalism?

While traditional capitalism focuses on maximizing shareholder profit, sustainable capitalism considers long-term societal and environmental impacts.

3. Why is it gaining attention now?

Because of growing climate threats, social unrest, and increasing investor interest in long-term responsible investing.

4. What are ESG factors?

They are metrics used to evaluate how companies perform in Environmental, Social, and Governance aspects.

5. Is sustainable capitalism profitable?

Yes. Companies with strong ESG profiles are found to outperform others over the long term by mitigating risks and building stakeholder trust.

6. How are governments promoting it?

Governments are creating policies, incentives, and regulations to push businesses towards sustainable operations and green innovations.

7. What is Gujarat doing in this space?

Gujarat is promoting green finance, empowering MSMEs, and hosting high-impact sustainability summits to raise awareness and drive implementation.

8. What is a green bond?

A debt instrument where the proceeds are used exclusively for environmentally friendly projects, like renewable energy or water treatment.

9. Can small businesses benefit from sustainable capitalism?

Absolutely. Sustainable practices improve efficiency, attract ethical investors, and open access to new markets.

10. What is the future of sustainable capitalism?

It is expected to become mainstream as global markets, governments, and civil societies increasingly prioritize long-term sustainability over short-term profits.

References

1. World Economic Forum. (2020). The Future of Capitalism by Paul Collier.
   https://www.weforum.org/stories/2020/01/the-future-of-capitalism-by-paul-collier-an-extract

2. Gujarat Headline. (2025). GCCI Gujarat Sustainability Summit 2025: First of its kind event in the state of Gujarat.
   https://www.gujaratheadline.com/gcci-gujarat-sustainability-summit-2025-first-of-its-kind-event-in-the-state-of-gujarat/

3. Reuters. (2024). India's Gujarat state civic body issues Asia's first certified green municipal bond.
   https://www.reuters.com/world/india/indias-gujarat-state-civic-body-issues-asias-first-certified-green-municipal-2024-03-01/

4. Ahmedabad Mirror. (2025). Making Gujarat’s MSMEs future-ready through sustainability.
   https://www.ahmedabadmirror.com/making-gujarats-msmes-future-ready-through-sustainability/81886311.html