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Creating change at scale: The benefits of becoming a Carbon Literacy Trainer

This year we will be running our first Train the Trainer: Carbon Literacy Course. Our new Head of Training and Advice, Jason Shilcock, spoke to our Senior Sustainability Adviser, Farah Lodhi-Jones, to ask her who our new course is for and what are the added benefits in designing and delivering your own Carbon Literacy Course.

First, tell us a little bit about your own Carbon Literacy journey and what led you to becoming a trainer?

I was living in China for a number of years and I had experience of their industrial growth and development, and the terrible air quality. I was living through that daily, so I started to question how people lived and what the cost was of socio-economic development vs environmental impacts. I was able to travel around Asia, and became more aware of how more people were being affected by the environment, in the name of development. This led me to,  an MSc certification in climate change and water resource management policy from SOAS and subsequently worked on projects in Indonesia with local farmers, using legacy funding from BAT and Fauna and Flora conducting their biodiversity risk assessment on key island watershed.  I then moved to Italy where someone mentioned the Carbon Literacy Project to me in 2021. With starting a family, and changing the pace of work, I volunteered with them and then joined them in Advocacy, using all the skills I’d learnt on the ground to create courses for clients. 

Can you tell us why Cynnal Cymru – Sustain Wales developed this new course?

Good question! I think it was just the right time! Cynnal Cymru is so experienced in this field and has seen how companies and organisations roll out this training to some of their staff, but can then be at a bit of a loss what to do next. The knowledge just “sits there”, unless you’ve got a passionate person who is going to take that up or different teams to drive it forward. We’d received requests to do Train the Trainer courses, so we needed to help people learn how to run peer-to-peer learning in their own organisations.

Who is this course for and what can they hope to gain from the course personally and professionally?

This course is for anyone who’s already Carbon Literate and who is ready to take the next step. Whether that’s leading, delivering, or supporting Carbon Literacy training sessions in your organisation or community. It’s ideal for senior managers, team leaders, board members or volunteers and is a space where they can get sort of reflections and peer-to-peer conversations and collaborations with other people in the room as well.

What practical training skills can participants expect to gain from the course?

This is a highly practical course where trainers gain hands-on experience in delivering Carbon Literacy training that works for all kinds of audiences. Traditionally it’s spread across three half-days and looks at the Carbon Literacy standard, how to find your confidence and skills in being a trainer and finally a hands-on session where we look at a section the trainer has prepared and give peer feedback. So, it’s very dynamic. It… can be quite challenging. It’s quite an intense few days, but also, I think, quite rewarding for people when they have been through that process and they can reflect. It also teaches the trainers flexibility and how to think on their feet, as every course is different.

What do enjoy most about supporting new Carbon Literacy trainers, and what impact do you hope participants will go on to have after completing the programme?

I love seeing the passion that people bring, and people really wanting to believe that they can make a change. It’s about unlocking feelings within that room – people do feel like they can unlock a little bit of positivity for themselves personally. Some trainers have been tasked by their leadership to do this sustainability training work, while still doing another full-time job on the side, so it can be daunting. So, a huge part of my enjoyment comes from unlocking that passion in people again and seeing them recognise their growth over the three sessions.

Finally, when is the next course and how do people sign up?

The next open course starts in June, with three sessions taking place on the 29th June, 1st and 6th July

You can find out more about the course and how to book on out Train the Trainer web page.

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Wales’s Future Fuels: Powering industrial vehicles and plant in a net zero Wales 

In November 2025, Cynnal Cymru convened a roundtable on behalf of our member, Wales & West Utilities, to explore the challenges of decarbonising vehicles and plant currently unsuitable for electrification.

We welcomed multi-sector stakeholders comprising fleet managers, policy and sector specialists, industry experts and alternative fuel providers to discuss policy, investment, impact on workforce, public perception and driver experience of different fuels.

There was consensus that for many fleet operators, a transition to current battery-electric technology and infrastructure alone will not be viable without significant change or compromise of services. The emerging insights centred on an urgent need for enhanced data, mapping, fleet manager support and recognition of current user-experience to build confidence in transitioning away from diesel.

Citing uncertainty as a prime reason for delays in decarbonisation, stakeholders also called for equitable investment in alternative fuels such as compressed natural gas, hydrogen and HVO and opportunities for those on the ground to access and trial these alternatives.

Read the Wales’s Future Fuels Roundtable Report.

If you are interested in Cynnal Cymru’s facilitation or convening services, please get in touch!

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Environmental Management Systems: A guide for Welsh SMEs

Consuming electricity and water, producing waste, operating machinery and processing natural resources – these are just some of the ways that businesses interact with the environment at operational level and through their supply chains.  

Businesses of all sizes are realising the need to understand, manage and improve their environmental impacts to ensure they can operate and grow sustainably. An Environmental Management System (EMS) proportionate to the size and activities of the organisation is a key framework for helping businesses to do this. 

However, it can be more challenging for SMEs to measure, manage and report on climate and environmental goals, due to constraints of time, cost and human resources. So, what are the options? Do you need to comply with the internationally recognised ISO 14001 or are there alternatives? 

We hope that this guide will help with understanding (i) the key elements of an EMS, (ii) the benefits and opportunities they bring for SMEs and (iii) provide an overview of the different certification standards for EMS implementation and support for SMEs in Wales. 

Remember, there are many benefits to gaining an EMS certification but it is the journey towards it that counts in terms of practical actions and outputs. All certifications will require resource. If this is not possible for your organisation right now we hope that this guide will still be valuable to steering you towards meaningful actions.    

What is an EMS?

An EMS is a structured framework of policies, procedures and practices which help organisations assess, manage and improve their environmental impact.  

The primary goals of an EMS are to ensure: 

  • Compliance with environmental requirements (for example, under an environmental permit issued by Natural Resources Wales) 
  • The efficient use of resources 
  • Waste reduction and minimal pollution 
  • The continual improvement of environmental performance 

Read the ISO article on ‘The benefits of implementing an environmental management system for your business.’  

A core strength of any EMS should be enabling continual improvement of environmental performance. Continual improvement as defined in ISO 14001, refers to recurring activities to enhance environmental performance. For example, organisations can identify improvement opportunities through audits and monitoring progress against objectives and targets.  

For an SME, this could be implementing behaviour change initiatives to support carbon reduction and nature related goals, such as eliminating deforestation. However, from a wider perspective, continuous improvement might look like an increasing number of business areas or processes being covered by the EMS, or an accumulation of knowledge and skills in dealing with environmental issues. Overall, it’s about a move from operational management of the environment to a more strategic approach.  

The benefits of implementing an EMS for SMEs in Wales

  • Manage and improve environmental impacts: by integrating environmental considerations into their operations, SMEs can minimise their ecological footprint and reduce negative impacts on the environment. 
  • Risk Management: The tools within an EMS provide a systematic approach to identifying and managing environmental risks and help SMEs to future proof their business and avoid potential liabilities and disruptions. 
  • Cost savings: Implementing efficient resource management practices can lead to cost savings for SMEs. By optimising energy and water usage, reducing waste generation, and implementing recycling initiatives, SMEs may see reductions in utilities bills and other financial benefits from more efficient and innovative processes. 
  • Compliance with regulations: An EMS helps SMEs comply with environmental regulations and legal requirements. By staying up to date with environmental legislation, SMEs can avoid penalties and legal issues. 
  • Enhanced reputation and competitive advantage: Demonstrating a commitment to environmental sustainability is important for many potential employees and customers. Increasingly, it is also a requirement for public sector buyers to take into account the sustainability of their contractors. For example, in Wales, the Social Partnerships and Public Procurement (Wales) Act introduced a Socially Responsible Procurement Duty and at UK level,  PPN 06/21 mandates that carbon reduction plans be taken into account in major government procurement contracts. 
  • Improved access to finance: An EMS can help SMEs to identify and manage steps they can take to fulfil requirements under Business Wales’ Green Growth Pledge. It can also act as the catalyst for innovation financing, for example, the Green Business Loan Scheme from Development Bank of Wales. 

EMS Standards and Certifications

When starting out to create an EMS, there are a number of standards available for SMEs in Wales. The main ones covered in this guide are: 

ISO 14001:2015 (Environmental Management Systems – Requirements and Guidance for Use)  

The most widely used voluntary EMS standard globally, providing a holistic framework ‘encompassing all aspects of an organisation’s environmental management and offering tools for continuous improvement’. Certification is available for organisations that have implemented the requirements of ISO 14001.  

ISO 14005:2019 (Environmental Management Systems – Guidance for a flexible approach to phased implementation) 

This standard provides guidance for a phased approach to establish, implement, maintain and improve an EMS. It may be particularly useful for SMEs as it provides flexibility and allows organisations to develop their EMS at their own pace. Full implementation of the guidance will result in an EMS that aligns with ISO14001.  

Note that BSI’s earlier guidance standard for SMEs, BS8555, which also provided a phased approach to EMS implementation has now been withdrawn and replaced by ISO 14005.  

Groundwork’s Green Dragon Standard 

Green Dragon is a UK based environmental accreditation awarded to ‘businesses that take action to understand, monitor and control their impacts on the environment’. It operates on a staged based system over five levels, allowing a business to progress in its own time.  At Level 5 the Green Dragon standard is equivalent to ISO 14001.  One of the advantages of Green Dragon is its recognition and support from Business Wales and its acknowledgement in Welsh Government procurement processes. 

Green Key / Gorian Gwyrdd  

Green Key is an eco-accreditation awarded to businesses operating in the tourism sector. Green Key certified businesses meet a set of high standard environmental requirements across 13 areas including environmental management, staff involvement, energy and water conservation, waste management, and food and beverage. In Wales, Green Key is operated by Keep Wales Tidy on behalf of the Foundation for Environmental Education (FEE).  

EU’s Eco-Management and Audit Scheme (EMAS)

EMAS is the EU’s voluntary scheme applicable to all organisations in the public and private sectors who want to evaluate, manage and improve their environmental performance. EMAS is broader and more rigorous than ISO14001 (as explained below) but ISO 14001 satisfies the requirements for the EMS component. Following Brexit, the UK no longer has a ‘competent body’ responsible for EMAS, however, organisations doing business in the EU might find EMAS Global registration useful and we have included information about the main requirements and links to further information in this document for completeness. 

It is worth noting that businesses do not need to adhere to a certain standard for their EMS and might decide to design a bespoke system. However, using one of the available standards might well be less resource intensive and can help to ensure a robust EMS that provides reassurance to stakeholders.  

The following sections of this guide provide a bit more detail about the above standards to help you identify which might be the right approach for your business.   

Please note this is a guide based on a summary of available online information. Please check the web links given for the most accurate and up to date details. 

4. International EMS standards ​

ISO14001:2015 (Environmental Management Systems – Requirements and Guidance for Use) 

ISO 14001:2015 is an internationally recognised, holistic framework for an EMS, encompassing all aspects of an organisation’s environmental impact and offering tools for continuous improvement.  

What is involved? 

The basis of ISO 14001 (as with other EMS standards) is the management system process Plan-Do-Check-Act (PDCA). The PDCA cycle is applied to the overall EMS, as well as individual processes, and enables organisations to achieve continual improvements to their environmental performance through improvements to the EMS. 

The Guidance describes the requirements for setting up and implementing an EMS including: 

An environmental policy: A statement that outlines an organisation’s commitment to environmental sustainability. 

Planning: This involves identifying environmental aspects and objectives of an organisation, setting targets and establishing programmes to achieve them. 

Implementation: This stage involves putting plans into action, allocating resources and assigning responsibilities. 

Checking: Regular monitoring of performance against objectives and targets is critical to ensure the timely implementation of corrective actions. 

Management review: A formal review of the EMS supports its continued effectiveness and suitability. 

EMS Plan-Do-Check-Act Model (Source: Westcon,2017, online) 

Costs, Certification and Training  

The standard can be purchased from the ISO website for approximately £130 and businesses can choose to implement the standard without the costs of certification. There are also various free and IEMA accredited training modules to assist with implementation. 

As mentioned above, certification is optional but can provide both organisations and their customers assurance that ISO 14001 has been implemented in a robust manner.  

Costs of certification from organisations accredited by The UK Accreditation Service (UKAS) vary but online quotes without commitment can be readily obtained. 

Certification is typically awarded for three years, subject to annual surveillance visits. The standard itself undergoes revisions periodically (typically every 5-10 years).  

ISO 14005:2019 (Environmental Management Systems – Guidance for a flexible approach to phased implementation) 

Whilst ISO 14001 is applicable to all types and sizes of organisation, the full implementation of an EMS at the same time might be prove challenging for some organisations and particularly SMEs where time, cost and human resources can be limited.  

At international level, a phased approach to implementing an EMS was therefore developed (previously the BSI standard BS8555:2016 which has been subsumed by ISO 14005) to encourage and guide SMEs to meet the requirements of ISO 14001. 

What is involved? 

The phased approach in ISO 14005 is designed to provide flexibility for an organisation to develop their EMS over a number of phases to ultimately meet the requirements of ISO 14001. 

The number of phases an organisation chooses to implement at any one time is flexible and can be determined depending on resources and priorities. Each phase is broken down into six consecutive stages to be completed over time. SMEs can monitor progress using the maturity matrix in Annex A of ISO 14005 and the free supporting documents provided by ISO 14005. 

The Assessment Sheet (on the supporting documents page) provided by ISO is a helpful tool that enables organizations to monitor and record progress through five levels of maturity corresponding to each EMS subclause. An EMS that satisfies the maturity Level 1 (Column 1) through to full maturity at Level 5 (Column 5) meets all the requirements for a particular clause of ISO 14001:2015. 

Costs, Certification and Training  

The Guidance can be downloaded from the ISO website for approximately £130. As the aim of ISO 14005 is to assist SMEs with reaching 14001, there is no separate certification for this standard. However, it is a good reference to turn to for ideas and practical examples on how to make your implementation of ISO 14001 more effective. 

Alternative EMS standards recognised in Wales

For SMEs based in Wales, there are alternatives to the above standards that are administered by national organisations and recognised by the public sector in the procurement process.

Groundwork Green Dragon Environmental Accreditation

The Green Dragon Environmental Accreditation is a comprehensive standard administered by Groundwork, a UKAS accredited inspection organisation. It is awarded to businesses that take action to understand, monitor and control their impacts on the environment. 

What is involved? 

Similar to ISO 14005, the standard operates on a staged based system (Levels 1-5), allowing organisations to join at any stage and progress their EMS in their own time. 

The five levels are: 

Level 1: Commitment to Environmental Management 

Level 2: Understanding environmental responsibilities 

Level 3: Managing environmental impacts 

Level 4: Environmental Management Programme 

Level 5: Continual environmental improvement 

Organisations can choose which level is appropriate to the nature and scale of their activities and upon completion of each level they will receive a certificate. At level 5, the Green Dragon standard is equivalent to ISO 14001. 

Groundwork provides several useful documents on its website to accompany the standard, including an Environmental Review Workbook. There is also a list of organisations across Wales who have achieved Green Dragon accreditation.   

Certification and costs 

To achieve and maintain the Green Dragon Environmental Standard, an annual audit with Groundwork is required. The cost of the audit varies depending on the level, with Level 3 being the most common entry point for organisations and costing.

Green Key – A sustainability standard for the tourism sector ​

Green Key is an international environmental certification programme for the tourism and hospitality industry. It has been awarded to more than 3,200 businesses from across the sector in 65 countries and is open to businesses from across the sector.  

Globally, Green Key is operated by the Foundation for Environmental Education (FEE) who work with national partners on certification. In Wales, the Green Key certificate is managed by Keep Wales Tidy. 

Green Key promotes sustainable practices and recognises businesses that meet specific criteria related to environmental management and sustainability. Criteria are set out over 13 thematic areas including energy and water conservation, waste management, sustainable procurement, and environmental education. 

The FEE has developed criteria and explanatory notes for businesses in six different categories (hotels and resorts, small accommodation, campsites, restaurants, attractions and conference centres).  

In each category, there are ‘imperative’ and ‘guideline’ criteria. For example, creation of a sustainability policy and interaction with stakeholders are imperative criteria, whilst a target to reduce carbon footprint is a guideline criteria.  Each organisation applying for a Green Key certificate must achieve all imperative criteria and then for each subsequent year that they apply they must meet an additional 5% of the guideline criteria.  

In addition to the general benefits of EMS implementation, Keep Wales Tidy highlights that travellers and tourists are increasingly keen to support sustainable businesses and that investment in a Green Key certification is a key market differentiator. Keep Wales Tidy has collated case studies of organisations across Wales who have invested in Green Key. 

Certification and costs  

The application process for certification consists of three parts: 

Sending the application documents 

Receiving on-site audits 

Decision by an independent entity (third-party verification) 

More information about the application process in Wales can be found on the Keep Wales Tidy website. 

Keep Wales Tidy aims to keep certification costs affordable and to ensure Green Key is accessible to all tourism providers. Investment levels therefore vary depending on the size of the business: 

Costs are paid as part of the application prcess and then annually following updated verification (for more information see https://keepwalestidy.cymru/our-work/awards/green-key/).

Seren Scheme

The Seren Scheme is based on BS8555 and follows the same phased approach. Organizations can choose to use the Seren Scheme to achieve other EMS standards such as ISO 14001 or EMAS, or register at a phase that aligns with the nature and scale of their business and remain at that phase. 

The Seren Scheme is applicable to both large and small organizations and places a strong focus on continuous improvement. 

BS8555 is divided into 5 phases: 

  • Stage 1: Leadership, context, and commitment 
  • Stage 2: Ensure compliance 
  • Stage 3: Plan and develop the EMS 
  • Stage 4: Implement the EMS 
  • Stage 5: Check and update the EMS 

As long as organizations pass an annual inspection, they can stay at that particular phase indefinitely and use their EMS to demonstrate their commitment to environmental management to stakeholders and customers. 

The Seren Scheme is administered by a private company called Tarian Inspection Services, which conducts inspections in a friendly, down-to-earth, and highly practical manner. They ensure that companies have a robust Environmental Management System that enhances their credibility, good management, and cost savings. 

Further information can be found at http://www.serenscheme.com/. 

EU’s Eco-Management and Audit Scheme (EMAS)

EMAS is a voluntary environmental management scheme designed by the European Commission. Its overall aim is to enable continuous improvement in the environmental performance of companies, language similar to that in ISO 14001. However, ISO 14001 aims for continual improvement of the system itself hopefully leading to improved environmental performance of the organisation. EMAS requires improved environmental performance of the organisation to be assessed through indicators relating to six core areas – energy efficiency, material efficiency, emissions, water, waste and land use with regards to biodiversity.  

EMAS is more rigorous than ISO 14001, however, ISO 14001 satisfies the EMS component of EMAS requirements.  

Registration with the scheme requires the following steps: 

Conduct a preliminary environmental review – this will be the baseline for improvement 

Adopt an environmental policy and programme in which you involve employees and external stakeholders  

Establish and implement an EMS 

Prepare an environmental statement  

The EMS and environmental statement to be verified and validated by an environmental verifier. 

Recognising the challenges faced by SMEs, EMAS has amended rules for SMEs to encourage participation in the scheme. These include verification every four years (rather than three) and publication of the environmental statement every two years, rather than annually. There is also financial support available in some Member States and a number of tools and guidance to assist SMEs. 

For more information, please see: 

EMAS presentation for organisations  

EMAS Easy Guidance – for SMEs 

EMAS Tools 

Indicative costs for EMAS registration 

In summary…

SMEs increasingly need to demonstrate an understanding of environmental impacts and a strategic approach to minimising climate and environmental impacts to satisfy potential customers and to future proof their business. 

In light of the prevalent tick-box culture in environmental matters, many organisations are seeking broader and more engaging systems, examining the impacts on their staff, communities, and supply chains.  

Regardless of the framework used for environmental, biodiversity, sustainability, or ESG reporting, businesses still need to adhere to similar concepts: focus on leadership and staff ownership, understand impacts, prioritise, plan, communicate, implement, and review. 

If you need further support or advice with any of these activities please reach out to our sustainability advisors.  

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What it takes to keep showing up: Resilience ahead of COP30

The hardest month to keep showing up 

This season represents one of the toughest times of the year for changemakers, climate leaders, and everyone working toward a climate-safe future. To write about COP is to acknowledge the discord, dissonance, and inner struggle that come with watching the gaps grow and the timelines compress. 

On one hand, we want to communicate hope; to inspire others to engage, innovate, and believe in the possibility of a better future. On the other hand, it is painful to witness the institutional failings of the world’s most crucial climate forum repeat themselves year after year, as the impacts of climate change hit ever closer to home. 

The fragile promise of cooperation 

A decade ago, after COP21, I sat down and read the Paris Agreement. Anyone who did the same would have recognised its duality: groundbreaking in vision, yet fragile in accountability. 

The document itself relied on two simple assumptions: that governments would recommit to climate action each year, setting progressively stronger targets, and that every participant would take action to meet them.  

Every year since, I have looked for these two simple measures of success. I’ve scanned the negotiation room for people whose purpose in being there aligns with the aims of the original agreement. I’ve tried to interpret the outcomes in a way that empowers and supports others in understanding the progress being made.  

Ten years on, I glance up from my laptop and catch the eye of my eight-year-old, with the realisation that everything has changed.  

It’s time to shift.   

The shift we now need 

Instead, let’s name the weight of this work. 

Let us acknowledge the disconnectedness, the structural failings, the complexity of emotions, and the pressure that builds in every human being who engages with this crisis. The stress that this discord places on those who lead, advocate, and show up. 

A healthy approach is not about maintaining optimism while filtering out the rest. It is built on the ability to process the internal struggle of an externally failing system and to allow ourselves to crumble, to feel, and then to rebuild, again and again. 

“COP30 can be the moment resilience is reframed, not as failure to prevent but as readiness to lead.”  

  • The World Economic Forum 

Resilience is the work now, which, for changemakers, starts with the self.  

Quiet resilience 

Wales is culturally well prepared for resilient leadership. Britain talks Climate and Nature 2025 analysed public attitudes to climate action in Wales, declaring that we “care more deeply than people realise”. 

Our culture embodies a sense of place, groundedness and spirit that radiates beyond borders. The climate crisis asks us to cultivate that same strength within ourselves.  

This year, instead of looking for the positive spin on global negotiations, I’ll be allowing a more sustainable form of action to emerge from our community of resilient changemakers.  

It’s only when we are able to ground our own nervous systems, that we are able to think holistically and clearly, for the creative, inspired solutions that the world now craves.  

Guest reflection by Helen Draper, Trustee of Cynnal Cymru and Founder of Climate Calm™.

About the author: 
Helen Draper is the Founder of Climate Calm™ and a Trustee of Cynnal Cymru. Drawing on her background in climate leadership and neuroscience-informed wellbeing, she helps changemakers align personal and planetary resilience. For further support, her free eBook Focus: Reclaiming Clarity, Calm and Climate Impact is available now.  

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We need to keep the focus on the Foundational Economy

The Foundational Economy was one of the vogue economic policy ideas of the fifth Senedd (2016-2021). It had many parents. The works of the Foundational Economy Collective gave it a sound academic basis. A group of politicians – Lee Waters (who later led on the concept in government), Jeremy Miles, Vikki Howells, and the late Hefin David – brought a debate to the Senedd calling for the Welsh Government to develop a strategy to ‘maximise the impact of the Foundational Economy’. Organisations such as the FSB and Wales’ think-tanks also developed their own thoughts on the concept. And organisations across civic life in Wales sought to become a part of a movement that appeared to be the next big idea.

So, what exactly is the Foundational Economy? At Cynnal Cymru we’ve worked with the Welsh Government to help define their response to this question in developing a new ‘Mission Statement’ for their work on the Foundational Economy. The Welsh Government says the following in its Mission Statement:

“The term ‘foundational economy’ refers to the sectors of the economy that provide the goods and services that underpin everyday life. The Welsh Government is focused on the organisations and people in these sectors, as well as the quality and accessibility of the goods and services they provide.

The foundational economy is more than just infrastructure, employment and output. It is also citizens’ sense of control and belonging in their community. These sectors are by their nature immediate to people’s surroundings, and so they are vital social as well as physical infrastructure.”

There are consistent debates about what constitutes the Foundational Economy or a ‘Foundational Economy approach’. Some have argued for a descriptive definition – that is, the Foundational Economy is a description of certain sectors of the economy that underpin everyday life –  for example care and health services, housing, food, and transport. The Welsh Government, for its part, has a strategic focus on the following sectors in the Foundational Economy:

  • care and health services, including social care and childcare
  • management of social housing
  • construction of residential and commercial buildings
  • energy and utilities
  • food
  • high street retail and services
  • tourism
  • public transport

Others have advocated for this to be developed into a more complex ‘analytical’ approach, introducing a ‘three-pillar concept of foundational liveability’, arguing that the liveability concept depends on the alignment of the three pillars of residual income (that is, income left over after spend on foundational goods and services), social infrastructure, and essential services. Whilst less easily communicable than the original concept, the advantage of this approach is that it takes us from the ‘what’ of the Foundational Economy concept to the ‘why’ and ‘how’.

Still more have advocated merger or absorption of the Foundational Economy concept with concepts that have a partial overlap, such as Community Wealth Building.

At Cynnal Cymru, we believe that a continued focus on the Foundational Economy is a welcome one, and we’re pleased to be working with the Welsh Government on this agenda. Here’s why.

Analysis by the Welsh Government finds that the Foundational Economy is a significant part of the Welsh economy. Over 60% of all Welsh headquartered businesses are within foundational sectors, and 51% of employees of Welsh VAT registered businesses are, too. It accounts for 47% of all turnover in Wales.

A geographic analysis of the Foundational Economy in Wales demonstrates the strength of the concept. As the Welsh Government’s Mission Statement states, the “The term ‘foundational economy’ refers to the sectors of the economy that provide the goods and services that underpin everyday life.”

Another way of looking at this could be ‘if you stripped out all non-essential economic activity, what would be left?’ Only that which is necessary to sustain life. The regional analysis of Wales demonstrates this in the real world. Some of the more rural areas see the vast majority (over 70%) of their businesses being placed in the Foundational Economy. Where there is additional economy activity – ‘non-essential’ or tradeable manufacturing and services, for example – the proportion is still high, but lower.

I should state that this economic activity is only ‘non-essential’ in the sense that it does not contribute to the immediate sustenance of life. It is, of course, a vital underpinning to wider quality of life, providing economic growth and good quality jobs.

The Foundational Economy, then, is a solid concept for understanding the economy around us. One Lee Waters quote from an Institute of Welsh Affairs piece stands out – “Of course we should continue to defend our tradable competitive economy, but we must pay more attention to the foundations of our economies”.

For Cynnal Cymru, this is an important framing that underpins the emphasis of governments focusing on the Foundational Economy. The ‘tradeable competitive economy’ can provide good quality jobs, has the potential to bring money into Wales, and can lower poverty rates through these mechanisms. Underpinning the idea of the Foundational Economy is that governments have focused on attracting charismatic sectors (with Artificial Intelligence being the latest focus for policy makers across the world) and paid little attention to the Foundational Economy sectors. A focus on the technologies of the future is important, and Wales should be doing what it can to reap the benefits. But work on these sectors doesn’t have to come at the expense of a focus on the Foundational Economy.

As the Welsh Government analysis shows, we can’t afford to ignore the Foundational Economy. It is too dominant in too many parts of Wales, and the ‘mundanity’ of some of these sectors has caused it to be a less interesting focus for many than charismatic sectors that employ far fewer people.

The working lives of people in the Foundational Economy matter just as much. And often they are defined by low wages, insecure hours, and non-unionised jobs. The Bevan Foundation undertook a research project into Fair Work in the Foundational Economy (with a focus on social care, hospitality, and retail) and found that working conditions were poor. These sectors found ‘a wide prevalence of comparatively low pay… where the majority of workers do not earn a real Living Wage’, ‘above average rates of part-time working’, and ‘low rates of in-work training’.

This makes a focus on the Foundational Economy the perfect partner for the Welsh Government’s ambition to raise levels of Fair Work in Wales – and the Foundational Economy and Fair Work (predominantly through the Living Wage) are the dual focuses of Cynnal Cymru’s Fair Economy team.

The Welsh Government has now published clear objectives in its Foundational Economy work:

  • Identify and support opportunities for more jobs, better jobs, greener jobs and promote fair work, including good pay, representation, security, and opportunity to progress.
  • Increase ‘household liveability’ by facilitating rising wages through promotion schemes such as Real Living Wage, helping increase the affordability of foundational essentials to support universal access to high quality goods and services.
  • Build local supply chains to keep people, skills and wealth in Wales.
  • Contribute towards addressing the climate and nature emergencies.
  • Encourage collaborative innovation and experimentation to improve basic goods and services, especially where these build resilient social infrastructure, such as through cooperative and community-owned projects.

These objectives form the basis for real action on the Foundational Economy. The people working in these sectors deserve to have good working lives, can make a real contribution to sustainability aims, and deliver services that all of us rely on.

Examples of the changes the Foundational Economy approach has made are abundant – and there is more to do. For example, Hywel Dda’s ‘grow your own’ approach to tackling recruitment problems by allowing alternative routes into healthcare employment, focused on building skills in the local community, can be spread to other health boards.

The Foundational Economy team’s direct project support has also created new opportunities. For example, it helped set up the Welsh Veg in Schools Programme. Prior to the project, over 94% of vegetables used in primary schools in Wales were sourced from outside of Wales, often frozen and non-organic. The project, beginning with just one grower, has now grown into a vibrant, multi-stakeholder project. By 2024, 8 growers had actively supplied 14 tonnes of organic Welsh veg for use in school meals. This was across 219 schools in six local authority areas. So far in 2025, the number of growers has expanded to 15, with 12 local authorities engaged. This means that approximately 1 million portions of local, organic veg will be served to school children in Wales as a direct result of the Foundational Economy project.

In housing, up to sixty-four local contractors have been supported to secure accreditations required to deliver retrofit work for homes across Wales. Based on feedback from the contractors, the funding will lead to over three hundred and fifty new jobs through the contractors securing additional work.

This is enabling local businesses to grow through securing more work, and creating new, skilled jobs. Delivery of the housing retrofit can be accelerated through additional contractor capacity, enabling residents to live in warmer, more energy efficient homes. This will lead to greater residual income, enable people to live healthier lives and reduce the climate impact of our housing stock.

The Welsh Government’s Foundational Economy programme has already supported the Living Wage accreditation process for major anchor employers in Wales such as local authorities, and there are exciting signs that this will expand in the future.

From a Living Wage for workers in Wales, to building skills and creating jobs for local people, to healthy, Welsh-grown food on children’s plates. All this and more has all stemmed from the Welsh Government’s focus on the Foundational Economy.

The working lives of people in the Foundational Economy and the services they provide for all of us are worthy of concerted focus. From academic concept to on-the-ground delivery, the Foundational Economy concept has delivered and is set to deliver more. We should take it into the seventh Senedd with pride.

Harry Thompson is Head of Fair Economy at Cynnal Cymru. Cynnal Cymru’s Fair Economy team has a dual focus – spreading the Living Wage across Wales, and supporting the Foundational Economy.

Please visit our resources section for more case studies from Welsh Government Foundational Economy team’s Backing Local Firms Fund.

Please visit the Welsh Government’s website for more information about their approach to the Foundational Economy.

We need to keep the focus on the Foundational Economy Read More »

two herring gulls sitting on a roof

Lessons from 20 years of being climate ready (or not) – watch where the gulls are!

Over the last 20 years I have been involved in some form of climate adaptation or resilience work, and I have found gulls a great indicator of whether we are climate ready or not. But first some other lessons.

The tools to help are just the same – we just need to choose one and use it

In 2006 I worked on the first climate risk assessment for an economic investment strategy. We used a tool called ‘Business Areas Climate Impacts Assessment Tool (BACLIAT)’. Since then, there has been an explosion of tools funded by short-term grants. This often creates barriers of confusion over which tools to use. The most successful tool I used was an online risk assessment that small businesses could use and then receive a tailored action plan. This later led to various editions of the weathering the storm guides for businesses and land managers.

Doing something new and long-term requires consistent resource – we won’t get it, so become good at passing the ball

Over the years we have had the UK Climate Impacts Programme, Climate UK running a national network of Climate Adaptation Partnerships, Climate Ready run by the Environment Agency, and a series of Climate Change Committee national climate risk assessments. Where capacity has grown is in areas where independent bodies have been able to retain or pass on the knowledge from one short-term initiative to the next. This is why the work of bodies such as Sustainability West Midlands, London Climate Ready Partnership, and the Welsh National Commission for Infrastructure are so important.

Extreme weather impacts vary – but naming them, putting lines on a map and looking back helps

Heat waves, wildfires, flooding, drought and storms. It isn’t exactly consistent when it happens or what the impact looks like. This can give the impression it is a random series of events that can’t be planned for. Initiatives such as naming storms or our Future Generations Commissioner’s suggestion of naming heatwaves all help to provide more visibility to climate impacts and planning. The conclusion of my PhD was unless you are willing to draw lines on a map, you won’t influence planners. We now have flood, surface water, water abstraction, heat island, and wildfire risk maps or zones to help make the invisible visible. Another  tool I found useful was Local Climate Impacts Profile (LCIPs). These involve a review of media reports and interviews with service providers to cover specific past dates during an extreme weather event. This then helped build up a picture of impact for future planning. My Dad is a former history teacher, so he would also argue that looking further back to where churches and wealthy houses were built is a good indicator of where land won’t flood.

Don’t buy a second home – especially not in the Mediterranean

The arguments about second homes, especially in Wales, are well known. But 20 years ago, I was presenting to a wealthy audience in Birmingham around the new development agency investment plans for the next 20 years and how we had tried to consider this new concept called ‘climate risk’. I could tell I was losing them, so I went off script and told them not to buy a second home in the Mediterranean. It immediately got their attention, and that of the local press, but not in the way I had intended. For years I had colleagues posting to me how good their holidays had been in the Med. That hasn’t happened for the last five years.

Climate impacts are unfair – but tackling them will create stronger communities

Work such as Climate Just has helped to map the multiple impacts and capacity to cope of local communities. It is no surprise that the poorest are often most vulnerable. But there is also an opportunity: by tackling the impacts of climate change we build stronger communities. I always remember a conversation at a conference hosted by the King of Sweden (who wore a name badge). A delegate asked, ‘why do Scandinavian countries have such a strong shared sense of community?’. The answer ‘If we didn’t cooperate, we wouldn’t survive a harsh winter or poor harvest. Those that weren’t willing to help their neighbours died alone.’ We are beginning to see this community response with community centres offer safe warm or cool spaces, a renewed focus on improving our public green spaces, and service providers realising their adaptation plans require a range of partners to work together to succeed.

You can’t predict the future – but there are ‘no-regret’ policies that produce multiple benefits

In work for Ashden we looked at a range of co-benefits or multiple benefits for climate change action. The good news is that often the actions required to improve the resilience of a place have many benefits, so even if the flood or heatwave doesn’t occur every year you still won’t regret the policy or activity. For example, floodplains that are kept as parks and cycle and walking routes, street trees and pocket parks, community centres able to offer a range of local services, and supply chains able to deal with a range of disruptions.

Watch the gulls – gulls are a great indicator for climate readiness

When delivering a range of workshops for 100s of small business around climate risk and resilience planning I was always on the lookout for good or bad examples. These included ‘don’t put your evacuation point opposite the exploding fuel tanks you will be running from’, ‘the hospital is not climate proof if all the access roads are flooded’, ‘get a snow plough fitting for your forklift to clear access points on the estate’, or ‘set up a reciprocal arrangement with another non-competing  manufacturer to provide a temporary production line’. But the best example was this – A business hadn’t insulated its roof properly, so it attracted gulls from miles around to enjoy the warm roof. They produced a lot of waste that then blocked up the gutters on the roof. When a storm came, the weight of the water on the roof caused it collapse stopping production for the day.

So, remember “If gulls like your roof, when the storms come your home will flood”

Dr Simon Slater, CEO of Cynnal Cymru

Living in a house, not in the Mediterranean, on a hill, near a church, in an average vulnerability rating on the Climate Just map, with no regular gull visitors.

How can Cynnal Cymru help?

Our training courses on Carbon Literacy and Nature Wise, already incorporate elements of climate resilience. Our real Living Wage accreditation process for employers results in income security and pay rises for 1000s of workers which enables individuals to have more capacity to prepare or respond to extreme weather events. We are also running a members and guest event on climate readiness and are at early stages of developing a climate readiness course.

Lessons from 20 years of being climate ready (or not) – watch where the gulls are! Read More »

3 people in a conversation

How do we talk to people about climate and nature? Here’s 5 things you can do…

It might be hard to grasp why some people don’t seem to care about nature or climate change, but for many, life is busy and already full of challenges and priorities. We have also become so disconnected from the natural world that it can be easy to forget that it’s essential to our existence. Unfortunately, just telling people why climate and nature matter, is unlikely to get them to change their mind or their habits. In fact, scare tactics have been shown to switch people off more than get them on board.  

To help you improve your approach to talking to your friends, family or colleagues, our training team have drawn on their shared experience to create their five top tips for communicating about nature and climate change. 

1. Focus on what’s possible, rather than what isn’t

Create a positive vision of a thriving future, and encourage people to share their own vision – storytelling can be a great tool for this. 

2. Appeal to people’s better self and encourage empathy

Most people want to be healthy and happy and would like the same for their family and friends – so highlight the tangible benefits of taking action on climate change. 

3. Remember the importance of listening

When communicating about climate change, what you hear is as important as what you say. Understanding why someone thinks the way they do will help you engage with them more effectively. 

4. Find some common ground

Avoid polarising arguments or rhetoric that can lead to ‘us and them’ or ‘everybody else’ thinking. Instead, highlight the things we have in common. 

5. Normalise positive behaviours

We tend to respond to things we see our peers doing, so provide some real, positive examples of how others are taking action.

If you want to know more? Check out these useful resources. 

To read: 

To watch: 

  • Colli Cymru i’r Môr – three-part series on iPlayer and S4C Clic looking at climate change in Wales and further afield. It’s presented in Welsh with English subtitles.  

To listen: 

To learn: 

You can also learn how to talk to people about climate change or the nature emergency as part of our Carbon Literacy or Nature Wise training courses.

How do we talk to people about climate and nature? Here’s 5 things you can do… Read More »

Bees and biodiversity: Why we all need to support our pollinators

This month, the Cynnal Cymru team have been sharing photos and stories about birds, bees and other wildlife encounters. It is summer, after all, and nature is in full swing! Our Training Administrator Tom also took part in the Wye Valley BuzzWatch: Bee ID and Monitoring workshop, which you can read about below.

But first, why should we care about bees?

  • Twenty percent of the UK’s cropped area contains crops which are dependent on pollinators, and the value of pollinators to UK agriculture is over £690 million per year.

We have lost 97% of our wildflower-rich meadows since the 1940s, and as the number of flowers in our countryside have declined, so too have our bumblebee pollinators, and they are in desperate need of our help!

The main threats to pollinators include habitat loss, environmental pollution, climate change and the spread of alien species.

Honey bees Vs native pollinators

There is just one species of honey bee in Britain and Europe, the Western or European Honey bee Apis mellifera. In contrast, there are over 1500 other pollinator species in the UK, including over 270 wild bee species, as well as hoverflies, moths and butterflies. Honey bees are not at threat of extinction in the UK. But there is increasing concern worldwide that declines in wild pollinators may be worsened by high densities of honey bees. For example, one honey bee hive can contain over 40,000 bees. That’s 40,000 bees competing with other wild species for food and resources, which could put a strain on the native wild bees. Honey bee hives have also been known to spread disease to wild bees, devastating local populations. If, for example, a honeybee hive was introduced into an area where a rare bumblebee species had made its home, this could result in the end of that population.

The UK has also lost 97% of its wildflower meadows in the last century, which means bumblebees are struggling to find enough food and good nesting spots to survive. The use of insecticides can also directly kill or affect the ability of bumblebees to find food and reproduce, with herbicide use killing flowering plants, a vital food source for bumblebees. Shifts in seasonal patterns and weather also disrupt bumblebee behaviour and impact survival at key life stages, such as spring emergence, nesting, and winter hibernation.

Extreme weather events like floods, droughts and storms also impact bumblebee numbers. Floods can drown hibernating queens and underground nests. Droughts can cause plant deaths, reducing the amount of nectar and pollen available for bumblebees to feed on and collect, with storms preventing bumblebees from foraging for food, as they struggle to fly in wet windy weather.

How you can help support pollinators

From volunteering to making your green spaces more pollinator friendly the Bumblebee Conservation Trust has plenty of bee-friendly ways to get involved.

Read ‘An introduction to bumblebees’, by Dr Richard Comont. The book covers bumblebee biology, their decline and conservation and what you can do to help them in your garden and beyond.

Whether you are a business, community or an individual, you can join the ‘Bee friendly’ initiative supported by Wales Biodiversity Partnership to help make Wales a pollinator friendly country

If you want to learn more about the links between human activity and ecosystem disruption and develop the knowledge to enable you and your organisation to take action for nature recovery, then signing up for our Nature Wise Eco-Literacy course might be the next step for you.

Nature Wise is a science-based, action-focused course to help you to understand the relationships between people and natural systems. It shares knowledge, builds understanding and provide the tools to motivate and catalyse action. You can sign up to our online courses at the below link.

Tom talks about what he learnt at the Bee ID and Monitoring workshop

On World Bee Day May 20th, I was lucky enough to attend a Bee ID and Monitoring workshop that was organised by Wye Valley National Landscapes and delivered by the Bumblebee Conservation Trust. Our expert for the day was Dr Richard Comont (Bumblebee Conservation Trust Science Manager). During the morning session Richard took us through a presentation on the benefits of bumblebees and other pollinators, and the data showing their unfortunate decline over the years. We looked at what we can do as individuals to allow them to thrive and make sure their much-needed habitats are protected. We learnt how to identify different bees and the differences between the queen, other female workers and male drones.

Fun fact: Female bees, including worker bees and queens, are the only ones that can sting. The stinger is a modified ovipositor; the organ used for laying eggs and is therefore only possessed by females. Male bees (drones) do not have stingers.

After a wonderful lunch put on by the National Landscapes team, we collected our Bee ID kit and went to Trelleck Wet Meadows for an afternoon session of bee identification.

We had a great afternoon carefully catching and identifying bees. I caught three female worker Red-Tailed bumblebees. Sadly, I didn’t get a picture of these as I was far too excited at the time. One of the other attendees caught a Brown-Banded Carder bee which was the first time one was recorded in the Wye-Valley National Landscape. 

I went away from the day with new knowledge and skills that will allow me to record and document the bumblebees that I come across, and add to the baseline data of bumblebee populations across the Wye-Valley National Landscape to allow them to focus their conservation efforts in the most important areas.

Tom Kirkton is the Training Administrator at Cynnal Cymru

Bees and biodiversity: Why we all need to support our pollinators Read More »

Top tips for increasing nature and biodiversity at work

Why is this important

A recent report in Harvard Business Review demonstrated that even small interventions to increase access to nature – in offices from Canada to China – increased staff creativity, productivity and helpfulness. Natural England’s “Links between natural environments and mental health” 2022 paper also affirms that spending time in natural environments is associated with positive outcomes for mental health, stress and psycho-social wellbeing.

Both reports indicate that increasing access to nature need not be large-scale, expensive or onerous to generate these benefits. Whilst not every organisation can invest in a green roof or living wall, even micro spaces can become ‘stepping stones’ to connect up habitats and provide feeding stations for wildlife. For staff too time-pressed to fit in a regular nature walk, daily glimpses of nature at work and a chance to see, smell or hear our incredible biodiversity are also effective in boosting mood and performance.

Public bodies already have a duty, under the Environment (Wales) Act 2016, to maintain and enhance biodiversity and their partners and suppliers are being asked to showcase their biodiversity commitments too when they tender for public contracts.

With all these reasons to incorporate nature more in both our personal and professional lives, we are delighted to share some top tips to help!

How you can take action for nature

Let it grow!

Take part in No Mow May and Let it Bloom June – Plantlife’s annual campaign urging everyone to pack away the lawnmower, let wildflowers grow freely and help nature. Whether you’re in a city, town or the countryside, it’s easy to take part. 

Adopt a green space

Adopt a verge or a green space near your place of work. Download Plantlife’s ‘Road verge and green space management best practice’ guides and learn how to transform verges and green spaces.

Small is beautiful

No lawn or green space is too small! Even the smallest wild patch can provide vital food needed by bees and butterflies, connecting us with nature and giving nature the best start to summer. 

‘Nature isn’t neat’

Check out the MonLife’s ‘Nature isn’t Neat’, approach to establishing joined-up green space management to create wildflower-rich pollinator habitats across Gwent local authority areas. This includes a comprehensive toolkit to support organisations and community groups.

Turn a neglected space into a vibrant garden

Keep Wales Tidy are giving away free garden packs to community groups, schools and other community-based organisations to turn neglected spaces into vibrant gardens. Whether you want to grow fruit and veg, create a green community hub, or boost local biodiversity, there are several packs to choose from.

‘Biodiversity Basics’

If you are a community or town councillor, you can take part in One Voice Wales Biodiversity Basics (Module 25 – Biodiversity basics Part 1 and Module 26 Part 2) designed by the Cynnal Cymru training team. This course teaches the basics of biodiversity, nature recovery and ecology to enable good decisions and effective Biodiversity Action Plans.

Citizen science

If access to land in your work place or at home is limited, why not explore biodiversity in your local area by using the LERC App, contributing to nature conservation, planning, research and education by submitting biodiversity records.

You can also help control and reduce the spread of invasive species at home or work with the help of this easy-to-use toolkit from the Wales Resilient Ecological Network.

Increasing nature & biodiversity at your business premises

Using the expertise of its Landscape Architecture team, Groundwork has pulled together a free Nature & Biodiversity toolkit which outlines the different nature-based features your business could consider at different scales of investment and impact.

Practical examples of organisations taking action for nature

From small growing initiatives to site-wide biodiversity action plans, the following businesses and organisations are already taking action to increase biodiversity within their community and place of work.

1. Incredible Edible Network

Transport for Wales are supporting and working with the ‘Incredible Edible Network’ of growing initiatives including ‘Incredible Edible Abergavenny’ and Machynlleth (via Edible Mach) which plant fruit and vegetables in public places for anyone to help themselves.

2. Action on Climate Emergency

Action on Climate Emergency (ACE) Monmouth are a community group supporting a variety of nature-based initiatives to boost biodiversity and carbon capture. This includes coordinating seed swaps, a pesticide free Monmouth, sustainable open gardens and supporting nature enhancement in school gardens.

3. Y Stiwdio – A place to make, learn and grow

Y Stiwdio in Pembrokeshire is a creative space where wellies are welcome. A place to make, learn and grow. Y Stiwdio volunteers have created a community described as ‘A special place for all of us with secluded seating and a variety of wildlife-friendly plants to enhance the centre of the village’.

4. Cardiff University – Ecosystem resilience and biodiversity action plan 2024-2026

Cynnal Cymru has office space in the Sbarc|Spark building in Cathays Cardiff. While it is located in an urban area, we were pleased to discover the surrounding land was being used to create wildlife friendly spaces including mini meadows, hedgerows and a bug hotel. The Ecosystem Resilience and Biodiversity Action Plan, sets out how Cardiff University are going to maintain and enhance biodiversity and promote ecosystem resilience across Cardiff University’s campuses.

5. Capital Coated Steel – Biodiversity garden

Capital Coated Steel are an excellent example of how a steel manufacturer has made space for nature on a previously derelict site. The Biodiversity garden supports staff well-being, helps to educate visitors and repurposes waste. The project initiated by, Simon Nurse, and co-created with his team, has now taken on a life of it’s own! You can follow the latest updates on Simon’s Linkedin page.

6. Greener Grangetown, Cardiff – Sustainable Drainage Systems

Greener Grange is a nature-based intervention to retrofit a sustainable drainage system into existing urban streets, creating over 100 raingardens while leaving space for parking and other needs. Not only does the system reduce flooding, it has increased biodiversity and provides multiple benefits to the local community. You can read more about the Green Grangetown project on the Nature Based Solutions hub.

Top tips for increasing nature and biodiversity at work Read More »

Should we chase wellbeing over growth? 

The theme of this month’s Cynnal Cymru newsletter is ‘growth’ in its broadest sense. It’s a word that is often associated with positivity. I’m writing this on the first working day of British Summer Time, although it is still very much spring. Growth is in the air – with the daffodils having sprouted and blossom season in full swing. Growth in this context is very much welcome, even to hay fever sufferers like myself. But there are some debates where the concept of growth is more contentious. 

Our role as Cynnal Cymru’s Fair Economy team is to make a contribution towards a fairer economy for Wales. Our two core work strands are partnering with the Living Wage Foundation in Wales – hosting Living Wage Wales in-house – and working with the Welsh Government to support their ambitions for Wales’ foundational economy. For those of you who don’t know, that’s the ‘mundane’ areas of the economy that are nonetheless incredibly important in underpinning everyday life – think care and health services, food, utilities, and similar. They haven’t always got the attention from economic policy makers that advanced manufacturing or cutting-edge technology have, but they make up a huge section of the economy – with 51% of Welsh employees working in the foundational economy. Their working lives and the contributions they make deserve attention too. 

It’s predominantly through these living wage and foundational economy workstreams that we engage with the concept of growth – the narrower idea of economic growth. Far from springtime flowers to some this concept evokes thoughts of industrialisation and environmental harm. The public policy debate in Wales – particularly where it intersects with the third sector – has seen a debate around whether economic growth is a desirable goal, with efforts to move towards a ‘wellbeing’ approach instead. 

Whereas in years past many would look to settle the inherent tensions between development and sustainability via an ambition for ‘sustainable growth’, some in the Welsh policy space are now looking to other concepts, such as ‘degrowth’, or asking for a ‘wellbeing economy’ to replace efforts to increase GDP. 

To me, a wellbeing economy is clearly a highly desirable aim. Focusing on a broader set of metrics than simply growth makes a huge amount of sense. We know that a rising tide doesn’t always lift all boats. The gap between the rich and the rest is growing. There is increasing evidence that, to some extent, pay has partly decoupled from productivity. The labour share of national income in the UK has fallen in recent decades, as a greater share goes to those who own, rather than those who work. 

Source: Our World in Data

But does that mean we should eschew the quest for economic growth in favour of a wellbeing economy? The chart above – which maps life satisfaction and GDP per capita – suggests this may be a false dichotomy. There is a clear correlation between reported life satisfaction (which I would suggest is fairly synonymous with wellbeing) and GDP per capita. It follows that a growth in GDP per capita – economic growth – is very likely to correspond to a growth in wellbeing. 

It’s right that we look to a broad set of measures when trying to create a fairer economy for Wales. It is fairly unsurprising that the Nordic countries of Denmark, Finland, Norway, Sweden, and Iceland find themselves at the top right of the graph – with some of the highest GDP per capita and life satisfaction in the world. 

The Nordic model of strong trade union rights and mass union membership to protect worker incomes is a successful one. It rebalances economies away from the ultra-rich having a unilateral say over how much they pay their workers and how much they keep in their own pockets. Wales would be sensible to emulate it as much as it can. But we shouldn’t forget that this model does include having amongst the highest GDP per capita in the world. 

And whilst there is some evidence of productivity growth (which tracks pretty consistently with GDP growth) and pay decoupling, there is no evidence of a total decoupling. Strong growth in GDP still means rising wages – for people of all income brackets. When we talk about how we can tackle poverty in Wales, economic growth is a tried-and-tested method. 

Economic growth is good for the rights of workers, too. Harvard University’s Dani Rodrik found in his paper ‘An Industrial Policy for Good Jobs’ that the ‘sine qua non’ (for fellow non-Latin speakers, that’s ‘without which, not’ – an indispensable ingredient) of good jobs is a high enough level of labour productivity. That is, increasing productivity (doing more with less), a key component of economic growth, results in jobs that ‘provide a middle-class living standard, adequate benefits, reasonable levels of personal autonomy, economic security, and career ladders’. 

The trade-offs between measures to support economic development and considerations such as equity and environmental protection are complex and multi-faceted. But Wales is one of the poorest areas of Western Europe on many measures. This results in human misery – including child poverty and people trapped in work where they are paid and respected too little. We should be hesitant about well-meaning calls to eschew economic growth. 

The ambition of many to become a wellbeing economy is a welcome one. But the increasingly common refrain of ‘wellbeing or growth’ is looking at the issue the wrong way around. We should instead consider how we can continue to decouple growth from carbon emissions and utilise economic growth in Wales to reduce poverty and increase wellbeing. 

Should we chase wellbeing over growth?  Read More »

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