MANILA, Philippines — The Philippines ranks 12th among 30 countries in the Hinrich Foundation-Institute for Management Development (IMD) Sustainable Trade Index (STI), driven by top marks in environmental pillar.
The index measures 30 economies’ readiness and capacity to participate in the global trading system by analyzing 70 data points grouped into three pillars that align with the long-term goals of economic growth, environmental protection and societal development.
According to the index, the Philippines garnered an overall score of 49.5 out of 100.
Among the three pillars, the Philippines gained the highest marks in the environmental pillar as it ranked 5th among 30 countries.
“The Philippines earns top marks in environmental standards in trade and fourth position in its ecological footprint,”Hinrich-IMD said.
“It is also seventh in renewable energy and ninth in transfer emissions. In terms of weaknesses, the Philippines ranks 15th in the percentage of wastewater treated and 18th in deforestation and carbon,”it said.
The index showed that the Philippines registered a score of 85 out of 100 in the environmental pillar.
Meanwhile, the country ranked 17th in the societal pillar with a score of 41.2, while it ranked 19th in the economic pillar with a score of 34.8.
Among countries in Asia-Pacific, the Philippines ranked sixth.
New Zealand ranked first among 30 countries in the global index, followed by the UK and Hong Kong.
Hinrich-IMD said the STI reminds countries that the sustainability of trade – economically, socially and environmentally speaking – is essential for economies to prosper at a time of higher ‘climate accountability’ expected of nations.
“Globalization and sustainability are at odds with each other. Companies and countries have used global trade and sourcing to maximize financial returns, but we are now acutely aware that this compromises sustainability to the extent, for instance, that energy is consumed and natural resources are depleted
Therefore, governments and corporate leaders alike must balance these two effects, asking ‘how do we support our economies while preserving ESG objectives?” IMD World Competitiveness Center director Arturo Bris said
Hinrich-IMD said the results show how economies balance the trade-offs between growth and equitable prosperity. The Index can serve as a tool for regulators and businesses to shape policies to better integrate sustainable trade along with the prosperity of economies.
“The index finds that the top-ranking economies encourage technological innovation and have low trade barriers. Their citizens have a high life expectancy, attend school for longer, and enjoy more growth opportunities. They conserve energy and respect climate goals globally,” Hinrich-IMD said.