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Australia must have a new macroeconomic framework
Three key areas of economic policy â fiscal, monetary, and climate change â must all be made to talk to each other.
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The outbreak of the COVID-19 pandemic has been a significant shock to the global economy. There will be ongoing significant structural change and macroeconomic stress in all countries due to the pandemic. In addition to these disruptions, the primary greenhouse-gas-emitting countries will be undertaking significant global action on climate change.
The pandemic was an unexpected shock. Climate change and climate policy are known shocks that can have an even more substantial impact on economic structures and macroeconomic stability.
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While congratulating companies to have been named the most sustainable in the world, the Prince of Wales has warned that more must be done to deliver the global low-carbon transition in line with the Paris Agreement s 1.5C trajectory.
Pictured: The Pince gave a rousing speech via Zoom. Image: Corporate Knights
Speaking at the launch of Corporate Knights’ 2021 Global 100 Index, which ranks the 100 most sustainable large businesses in the world, the Prince acknowledged that the listed businesses are “helping to move the world onto a more sustainable trajectory while leading by example”.
In creating the Index, Corporate Knights accounts for the proportion of sales and revenues generated from products and services with net-positive social and environmental impacts, and the proportion of capital invested in dedicated sustainable projects, facilities and brands. It also considers whether businesses link executive pay to sustainability-related KPIs and whether they promote gender