GARP Sustainability and Climate Risk (SCR) Practice Exam

The definition of economic sustainability centers around the idea of creating accessible economic systems for all. This concept emphasizes the importance of ensuring that economic opportunities are available to a wide range of individuals and communities, thus promoting equity and inclusivity within the economy. Economic sustainability is achieved when systems are designed to be resilient and provide for the needs of both current and future generations, while also considering social and environmental factors in addition to economic ones.

This approach contrasts with simply maximizing profits for corporations, which may not necessarily address broader social issues or ensure that wealth is distributed equitably. Similarly, prioritizing environmental regulations over economic growth could lead to conflicts between ecological protection and economic development, rather than a balanced approach that fosters long-term economic stability. Additionally, relying on foreign investment for development can make an economy vulnerable and dependent, which does not contribute to its sustainable growth. By focusing on accessibility and inclusivity, economic sustainability builds a foundation that supports diverse participation in the economy and fosters resilience against various economic challenges.