In an era when sustainability and economic resilience are increasingly crucial, the 2024 Sustainable Trade Index (STI) offers invaluable insights into how countries perform across key sustainability metrics. Developed by the Hinrich Foundation in partnership with the IMD World Competitiveness Center, this annual index evaluates 30 global economies based on three core pillars of sustainability: economic, societal, and environmental. By highlighting areas of strength and opportunities for improvement, the STI serves as a valuable resource for policymakers, governments, and researchers dedicated to fostering a balanced approach to trade and sustainability.
Key Features of the 2024 Sustainable Trade Index
The 2024 STI provides a comprehensive look at each economy’s commitment to sustainable trade practices, taking into account an impressive array of factors to paint a holistic picture of sustainability.
Methodology: Pillars and Indicators
The 2024 STI measures sustainability through three main pillars:
- Economic – Evaluates economic stability, innovation, and resilience factors that contribute to sustainable trade.
- Societal – Considers social indicators like education, health, and income distribution that support societal well-being and equitable growth.
- Environmental – Assesses environmental stewardship, resource management, and emissions reductions that contribute to long-term ecological health.
Each of these pillars comprises 72 individual indicators that collectively reflect the performance of each economy. Notably, the 2024 edition has introduced Universal Health Coverage as a new metric, emphasizing the role of public health in sustainable development.
Top Performers of 2024
In the 2024 STI, several economies demonstrated outstanding performance, reflecting their ongoing commitment to sustainable practices. Here are the top 10 economies and their scores:
- New Zealand – 100.0
- United Kingdom – 97.7
- Australia – 87.4
- Singapore – 85.7
- Japan – 81.5
- South Korea – 81.4
- Hong Kong, SAR – 81.4
- Canada – 80.0
- Taiwan – 72.3
- United States – 72.2
New Zealand and the United Kingdom held onto their leading positions from the previous year, continuing to excel in integrating sustainable practices across all three pillars. Australia and Singapore also scored high, showcasing strong regional leadership in sustainable trade. These rankings highlight the strategies that these economies employ to balance economic growth with environmental protection and societal well-being.
Regional Performance Insights
The 2024 STI’s diverse roster of economies spans Asia-Pacific, the Americas, and Europe, revealing notable regional trends in sustainability.
Asia-Pacific: A Region of Contrasts
The Asia-Pacific region’s performance is marked by both top-tier and lower-tier economies, reflecting a broad spectrum of sustainability outcomes:
- Singapore, Japan, and South Korea rank prominently within the top 10, driven by strong environmental initiatives and robust societal support systems.
- However, Myanmar (27th) and Papua New Guinea (29th) illustrate the challenges that certain economies face in achieving sustainability, often due to limited resources and infrastructure for supporting large-scale environmental or social programs.
Americas: Strength in the North, Challenges in the South
The Americas show strong performance from North American countries, while Latin American economies highlight the challenges of balancing economic development with sustainability:
- The United States (10th) and Canada (8th) score well, benefiting from advanced infrastructure, regulatory frameworks, and social support systems.
- Chile (11th), as the highest-ranked Latin American country, demonstrates that sustainable trade practices are gaining ground in the region, though there remains significant room for growth.
Europe: Leading the Way in Sustainability
Europe continues to be a strong performer, with the United Kingdom achieving an impressive second-place ranking globally. This result reflects Europe’s proactive stance on environmental and social policies, with economies increasingly prioritizing sustainability as a core part of trade and economic strategy.
Bottom Performers: Economies Facing Sustainability Challenges
The 2024 STI also highlights economies that face considerable challenges in advancing sustainability:
- Sri Lanka – 16.8
- Myanmar – 11.1
- Pakistan – 3.7
- Papua New Guinea – 3.2
- Russia – 0.0
These rankings serve as a call to action, encouraging targeted efforts in regions where sustainability practices may be limited by economic constraints, resource limitations, or political instability. The bottom-ranked economies underscore the difficulties of achieving sustainable trade in the absence of strong foundational systems that support resilience and inclusivity.
The Value of the Sustainable Trade Index for Policymakers and Stakeholders
The 2024 STI provides a wealth of insights that can inform policy and promote best practices in sustainable trade. By highlighting both successes and areas for improvement, the index equips governments, organizations, and researchers with a data-driven foundation for promoting sustainable development. Key takeaways from this year’s index include:
Benchmarking for Progress: The STI offers a clear benchmark for economies to measure their sustainability progress relative to other nations. This comparison can motivate leaders to adopt proven strategies from top performers.
Promoting Equitable Growth: The societal pillar emphasizes the importance of social factors, from health coverage to income equality, that contribute to sustainable development. Economies that prioritize equitable growth create a stronger foundation for long-term resilience.
Encouraging Environmental Stewardship: With environmental factors comprising a third of the index, economies are reminded of the importance of balancing economic growth with responsible resource management. Top-ranking nations often have robust environmental policies that protect natural resources, reduce emissions, and support biodiversity.
Identifying Regional Trends and Needs: The index allows for targeted regional insights, guiding international collaborations and aid in areas where sustainability challenges are most pressing. By comparing regional performances, policymakers can identify common challenges and work together on solutions.
Sustainable Trade as a Path to Economic Resilience
The 2024 Sustainable Trade Index reinforces the idea that sustainable trade is not only environmentally beneficial but economically resilient. As global economies face pressures from climate change, resource scarcity, and geopolitical instability, the need for robust sustainability practices becomes paramount. Economies that excel in the STI demonstrate resilience through diversified, inclusive, and responsible trade policies, which better prepare them for global uncertainties.
For emerging economies, the STI also provides a roadmap to develop sustainable trade practices that foster resilience, attracting investors interested in stable, socially responsible markets. The data from the STI showcases how economies can pursue growth without compromising environmental or social health, setting a positive example for future development.
Conclusion: The Path Forward for Sustainable Trade
The 2024 Sustainable Trade Index highlights the interconnectedness of economic growth, social well-being, and environmental stewardship, offering a holistic view of what it means to engage in sustainable trade. As economies strive to improve their sustainability rankings, the index serves as both a benchmark and a guide, helping countries make meaningful progress toward a balanced and resilient global trade system.
The impressive performances of countries like New Zealand and the United Kingdom underscore the potential for high standards in sustainable trade, while the rankings also identify critical areas where improvement is needed. By fostering an open dialogue and sharing best practices, the STI promotes a collaborative approach to global sustainability, inspiring economies to prioritize resilience, inclusivity, and ecological responsibility.
As the STI continues to evolve, it will play an increasingly important role in guiding policymakers and researchers in developing sustainable trade frameworks that meet the needs of both current and future generations. With actionable insights, the 2024 STI reminds us that sustainable trade is not merely a goal—it’s a necessity for a prosperous and resilient global economy.
FAQs
What is the 2024 Sustainable Trade Index?
The 2024 Sustainable Trade Index (STI), developed by the Hinrich Foundation with the IMD World Competitiveness Center, ranks 30 global economies based on their sustainability in trade across economic, societal, and environmental pillars.
How is the STI ranking determined?
The STI uses 72 indicators across three pillars—economic, societal, and environmental—to calculate each economy’s sustainability score, with the Universal Health Coverage metric newly added in 2024.
Which countries top the 2024 Sustainable Trade Index?
New Zealand ranks first, followed by the United Kingdom, Australia, and Singapore. These countries are noted for their commitment to sustainable trade practices and overall economic resilience.
Why are some countries ranked lower in the STI?
Lower rankings often reflect challenges in sustainability practices due to limited resources, weaker social infrastructure, or environmental concerns that restrict sustainable growth.
How can the STI benefit policymakers?
The STI provides benchmarks for countries to measure progress and encourages best practices in sustainable trade, helping policymakers prioritize resilience, inclusivity, and ecological responsibility.
What is the significance of Universal Health Coverage in the STI?
Adding Universal Health Coverage as an indicator underscores the importance of societal well-being as a foundation for sustainable trade, highlighting health as a key component of national resilience.
Resources:
https://www.voronoiapp.com/economy/Ranked-The-Worlds-Most-Sustainable-Economies-in-2024--2810
https://www.hinrichfoundation.com/research/wp/sustainable/sustainable-trade-index-2024/
The 2024 Sustainable Trade Index underscores that sustainable trade is vital for a resilient global economy, providing a roadmap for economies worldwide to prioritize long-term growth, equity, and environmental stewardship.
