Vladislav Todorov

The following sections are included:
• Introduction;
• SRI and Sustainability;
• Evaluation and Strategies;
• Review of the Market Trend;
• Institutions and Governance;
• Market Forces and Direction;
• Policy Implications and Conclusions;
• References.

Economics is deeply rooted in social sciences and needs to reclaim its roots in ethics and philosophy. An examination of its history shows that key economics issues have always been of moral and ethical nature and its methodologies directly linked to human and societal objectives. Ethical economics is needed to urgently respond to the priorities of climate change and facilitate a transition to sustainability. The 20th-century tools are not adequate for the sustainability challenges. New developments associated with information, education, innovation, neo-financing and spirituality offer new resources and understanding to economics. Three conceptual and three operational principles are presented as a way in which ethical stances can translate into practical solutions and form the basis of policy development, decision-making and planning. An ethics matrix is put forward for evaluating any existing or proposed economic tools or initiatives, with collaborative consumption put to the test as an example.

Innovations are the building blocks for a transition to sustainability. This covers a broad range of technologies including incremental, disruptive, breakthrough and revolutionary (or radical) technological innovations. The chapter puts forward an assessment framework which should form part of any decision-making related to new technologies in business as well as support by government and civil society. It responds to the requirements of the current 6th technological wave in delivering solutions to energy, transport and industry, triggering displacement of old technologies, management and philosophical paradigms and encouraging the new health- and healing-related wave. The framework starts from the technical knowledge and moves to risks, changes in markets and links within society, followed by social, environmental, economic and health impacts, and defining the sustainability aim, supporting policies and links to the global green system of innovation.