Since 2020, sustainability has ceased to be a priority for governments and businesses. The COVID crisis, Russia’s invasion of Ukraine, the inflation surge, the war in the Middle East, the artificial intelligence revolution, and the profound geopolitical transformations taking place in the era of Trump 2.0, marked by rising populism, isolationism, imperialism, and climate change denial, have led political and business agendas to focus on strategic autonomy and resilience at the expense of sustainability. The recent conflict in the Persian Gulf and the rise in global oil and gas prices appear to be the final blow to carbon emission containment, as they will lead to new investments and increased future fossil fuel exploration.
This is a dramatic mistake for humanity, as our prosperity depends on keeping sustainability a priority across its different dimensions: Environmental, Social, and Governance (ESG).
Let us start with the Environmental dimension. Recent evidence has confirmed climate scientists’ predictions. Greenhouse gas emissions have increased carbon dioxide concentrations in the atmosphere far beyond the planet’s absorption capacity and at a much faster rate than any climate change in recorded history. As a result, and as expected, the planet’s climate in recent years has shown a pattern of global warming compared to preindustrial levels (1850 to 1900). The last 11 years have been the hottest since 1900, and the last three years have been the hottest on record. In 2024, the 1.5-degree global warming threshold was already exceeded. Extreme weather events are increasingly evident, including in Portugal. The climate problem is now very real, and governments and companies are rightly focusing on adaptation and climate resilience. However, abandoning emission reduction targets will only further accelerate global warming, potentially leading to catastrophic risks for human civilization.
Let us now turn to the Social dimension. The rise in global conflicts, the reduction in humanitarian aid from Western countries, and the increase in inequality and exclusion are leading not only to global humanitarian crises but also to a decline in social cohesion and solidarity within countries. This will increase intolerance toward those who are different and further contribute to social polarization. Yet European countries provide a clear example of how a focus on diversity and inclusion leads to more peaceful and cohesive societies. This is an asset that societies cannot afford to lose. Investing in workforce and population diversity, promoting gender equality, and ensuring inclusion so that economic and social systems do not exclude individuals or groups because of their differences are fundamental practices that must be strengthened.
Finally, but no less importantly, the Governance dimension. We have known since ancient times that the concentration of power leads to systemic flaws in political and social systems, weakening citizens’ rights and guarantees and resulting in conflict and abuse. The principles of separation of powers, whether in political systems through the division of executive, legislative, and judicial authority, or in corporate governance through best practices such as separating the roles of Chairperson and CEO, are essential for sound governance models. Transparency, the reduction of conflicts of interest, and the fight against corruption and money laundering are fundamental to a free society governed by the rule of law, in full respect for human rights. Without good governance, our systems deteriorate.
Sustainability therefore remains a fundamental imperative for humanity and for every country. Our society achieved enormous civilizational progress in the 70 years from the end of the Second World War until 2015, the peak of multilateralism and sustainability promotion, marked by the Paris Agreement and the launch of the Sustainable Development Agenda. It is up to each of us, citizens, business leaders, and public managers, to ensure that sustainability remains at the heart of agendas and action plans.
Filipe Santos, Dean of Católica Lisbon School of Business and Economics