How To Go With And Beyond The GDP In Favour Of Sustainability? The Association Of Gross Domestic Product (GDP) With The Inclusive Wealth Index (IWI)

Objective: This article should be placed in the movement “to go beyond the GDP”. It proposes to go beyond in order to integrate the sustainability and the ESG as well but still with the GDP to favour a smooth transition and reach a stronger and broader impact towards all stakeholders. To report on the economic situation, the communication of the State is based on GDP which is kept and used with a new indicator. Methods: The proposal of such new indicator is to use the IWI, the Inclusive Wealth Index (IWI). As it gathers stock data in 3 capitals, produced, human and natural, it enables the State to report on sustainability and on ESG data. The communication proposed is made from data available in 2004-2008 for GDP and IWI for 6 countries, France, Japan, Nigeria, Norway, Russia and the United Kingdom. Two communication channels are used : the report on the Balance Sheet of the State integrating the IWI and the report on P&L for the State integrating the GDP and the IWI. Results: Comparing to a report based only on GDP, the addition of the IWI means an increase of the assets of the State between 3 to 24 times, which show that the human and natural capital represent a central part in the common wealth of all citizens. In terms of GDP and growth, only one country over 4 has a sustainable economic growth in 2008, the 3 others have economic growth but non sustainable. 2 countries combine non-economic growth and non-sustainability. Conclusions: To have impact on all stakeholders and to show that the State as well impose to itself ESG and sustainable targets, the association of the GDP with the IWI is interesting and should act on the citizen’s mind towards a more respectful economic growth towards the Biosphere