Today the global economy is five times greater than it was in 1950 and soon the world's population is set to reach eight billion. Can the Earth's natural resources continue to support unlimited economic growth?

In this week's Earth Report corporate leaders and the World Bank President give their vision of a sustainable future.

Profit at any cost?

So far economic growth has taken little account of the environment.
Capitalism - and the globalisation of capitalism - has left us with a world where the environment is a wholly owned subsidiary of big business where the pursuit of short-term capital gain has left us with a long-term environmental problem. As a result, the economy has grown and the environment has shrunk.

But how long can this go on? Our prevailing economics has, up until now, externalised 'invisible' costs like the environment. Now, scientists and environmental groups have brought the issue of environmental degradation into the public arena - and raised awareness amongst consumers who now demand companies operate a 'triple bottom line' of social responsibility, environmental responsibility, as well as profits.

Good for profits?

In 1994 Ray Anderson's company, Interface Inc, was already 21 years old. After reading Paul Hawken's book The Ecology of Commerce he began a process of radical changes within his company to achieve sustainability.

Six years later, Interface Inc has reduced its waste by half and is working towards a 'closed loop production process' - where its products are retrieved at the end of their useful lives and recycled.

As importantly, the 'culture' of the company has changed from solely profit-driven to one that embraces environmental responsibility at all levels - from suppliers to consumers. Their aim is that customers will buy the 'process' as well as the product.

The Otto Group has developed a similar sustainability policy and only buys wood from sources approved by the Forest Stewardship Council.

Business morals

Big business has big buying power - and this can be used to effect positive change from supplier to seller.

The Otto Group has used its buying power to make their social and environmental standards a requirement in all the companies they do business with. Rather than resenting this influence, the companies they deal with accept it as a requirement of winning and keeping contracts.

Taking the lead - business or goverment?

The role of the private sector is incredibly important in affecting change. At the World Bank a fund - initiated after Kyoto - is bringing governments and the private sector together. This initiative offers companies the possibility of reducing their carbon emissions by buying certificates that will appreciate the environment rather than depreciate it. So far the fund holds around US $145 million.

The Bank is also beginning to consult with governments on appropriate frameworks in which companies should operate and how 'good governance' - the protection of rights and the environment - can work hand-in-hand with business.

A taxing problem

As well as providing a framework for business to operate in, governments could also take the lead by changing their tax systems - from taxing good things like income and property to taxing bad things like waste, pollution and carbon dioxide.

However, ultimately it is the market place that will move business.

Consumer clout

In poor countries an individual may not have a choice of products but in industrialised countries there is enough competition to offer consumers a range of goods. Here the consumer has the power to choose one product over another - or dictate the terms by which a product is produced.

It's certainly no coincidence that businesses jumped on the 'green' bandwagon at the same time that environmental groups brought environmental issues to the attention of the wider public. Today, corporations must bow to consumer power in order to survive in a competitive economic environment.

A different world

Globalisation of the world's economies has brought a unique opportunity for international organisations like the World Bank to work with companies and governments and apply social and environmental standards across the world.

Finally corporations are waking up to the idea that sustainable business practices can enhance profits and that investing in the environment is investing in a better future for all.