In the Sustainable Trade Index report released on Tuesday, Singapore placed 5th among 30 economies. The report was made by the Institute for Management Development (IMD), an academic institution in Switzerland, as well as the philanthropic Hinrich Foundation.
The index ranked 30 economies by their capacity for global trade in a way that still supports long-term sustainability. The ranking also covered societal, environmental, and economic aspects.
The societal pillar captures the factors that contribute to the long-term capacity of economies to conduct trade. This includes labour standards and education levels.
Meanwhile, the environmental pillow measures how a country uses its natural resources, as well as how nations manage externalities that arise from economic growth and participation in the global trading system, such as water and air pollution levels.
Lastly, the economic pillar focuses on how well nations foster economic growth through international trade. It also covers the ease of international trade, as well as the quality of trade infrastructure.
In the index, Singapore ranked 9th in the social pillar, 10th in the environmental pillar, and 2nd in the economic pillar.
The rankings of the Sustainable Trade Index are based on factors that affect the sustainability of trade during a time of high inflation and political tension.
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New Zealand was ranked 1st, followed by Britain, Hong Kong, and Japan.
The index could not have been released at a better time. Currently, the United Nations Climate Change Conference (COP27) is ongoing in Egypt. The index serves as a reminder to nations that sustainability is integral for economies to remain successful at a time when climate accountability is expected.
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