Sustainability Solutions

Theme concluded 2018–2024

The goal of the Sustainability Solutions theme was to accelerate the transition towards a society where individuals, companies, and political decision-makers alike align their activities with the limits of nature’s carrying capacity – and flourish while doing so.

What was it about?

Our economy and well-being are entirely dependent on nature – or, in economic terms, natural capital. Human activity is burdening nature, both animate and inanimate, beyond the limits of its carrying capacity. This endangers the very foundation of our economy and well-being. Without nature, we cannot survive.

The various dimensions of the ecological sustainability crisis – biodiversity loss, climate change, and the overconsumption of natural resources – have previously been addressed in their own silos. However, they are inseparably linked: if you try to solve one without the other, you will fail. We must move from silos to managing the whole: the sustainable management of natural capital.

We need smarter operating models for the economy and daily life so that everyone has the opportunity for a high quality of life within the limits of nature’s carrying capacity. Successfully meeting this challenge presents a major opportunity for creating new economic success, well-being, and competitiveness for Finland and its people.

What did we do?

The Sustainability Solutions theme accelerated the transition towards a society where individuals, businesses, and policymakers align their activities with the limits of nature’s carrying capacity.

The aim was to strengthen the ability of Finnish actors to tackle the ecological sustainability crisis as a whole, to recognise our dependence on natural capital, and to manage it sustainably. A circular economy is an essential prerequisite for keeping our activities within the limits of nature’s carrying capacity while simultaneously generating new growth.

Between 2018 and 2024, we promoted ambitious climate and nature policies, accelerated the transition to a circular economy, and encouraged citizens to adopt sustainable lifestyles. At the same time, we promoted successful business, sustainable public finances, and a high quality of life.

This work was carried out in cooperation with a wide range of stakeholders in Finland and internationally. For example, we funded over a hundred projects promoting the sustainability transition across Finland.

What did we achieve?

According to an independent impact assessment (summary in English) of the Sustainability Solutions theme, Sitra has been recognised as a key player in bringing sustainability issues into social debate.

The greatest successes relate to climate and circular economy work, areas where Sitra has worked for a long time and with consistent effort. According to the assessment, Sitra has been recognised as a highly desirable partner in sustainability matters, and Sitra’s work in the field has been highly valued.

Circular Economy

Under Sitra’s leadership, Finland drew up the world’s first national road map to a circular economy, which was updated in 2019. Inspired by Finland’s road map, several countries have since prepared their own.

We have integrated the circular economy into education at various levels and developed tools for companies to develop circular business models, while also taking biodiversity into account.

We have developed circular collaboration models with heavy industry, for example in the Kemi-Tornio region. We also established a network of Finnish eco-industrial parks to develop and share best practices nationwide.

The World Circular Economy Forum (WCEF), established at the initiative of Sitra and Finland, annually brings together thousands of circular economy influencers from the private and public sectors. Through long-term work, Sitra has emerged as an international pioneer in the circular economy. As an example, the prestigious Time magazine published a comprehensive article on the circular economy work done in Finland.

In 2022, we published a pioneering study showing that biodiversity loss can be halted and biodiversity restored to year 2000 levels by 2035.

We also showed, through concrete examples, how companies can create new business through circular solutions while simultaneously tackling biodiversity loss. A list of 30 European pioneer companies was published at the WCEF2024 in Brussels. This list was a continuation of the popular “Most Interesting Companies in the Circular Economy” lists that Sitra has published several times.

Daily life within the limits of nature’s carrying capacity

How we live, move, eat, and what we buy have significant environmental impacts. We developed tools for a sustainable everyday life and encouraged citizens to adopt sustainable lifestyles.

To promote sustainable daily living, we developed the Lifestyle Test, which had been completed over 1.5 million times in Finland by spring 2024. In addition, thousands of people have made plans to reduce their personal emissions. The updated Lifestyle Test has been launched in eight other European countries in addition to Finland.

We have helped small and large companies develop more sustainable consumer businesses. We have also worked with NGOs and associations of all sizes to promote sustainable daily life.

Furthermore, we accelerated the measurement of the biodiversity footprint of companies, municipalities, and citizens in collaboration with partners. In a pilot project, the University of Jyväskylä calculated the biodiversity footprint of the S Group, marking the first time internationally that the biodiversity footprint of a large retail group had been calculated. The news received widespread attention in the domestic media and attracted interest internationally.

More ambition for climate and nature action

We have analysed cost-effective and equitable emission reduction measures and helped raise the ambition of Finland’s climate policy. We put forward a highly publicised proposal for a sustainable development tax reform (summary in English). For companies, we offered concrete tools and examples for managing nature impacts and developing nature-positive business models.

We supported the strengthening and expansion of the European Union’s Emissions Trading System (ETS) to ensure climate targets are met efficiently and equitably.

Around the start of the Russian war of aggression, we highlighted the need to prepare for the energy crisis through foresight, energy saving, and domestic production. At Sitra’s initiative, the central government’s joint “Down a Degree” energy-saving campaign was also launched, helping to lower electricity consumption and reduce the risk of power shortages.

We highlighted how municipalities (summary in English) in Finland could significantly influence emissions and biodiversity – and benefit from it economically. We also organised the Great Nature Dialogue Day, where citizens across the country gathered for over a hundred discussions on the significance of nature. The aim was to deepen the understanding of Finns’ diverse relationships with nature and build a common will to halt biodiversity loss.

Sustainable management of natural capital

On several occasions, we succeeded in highlighting the economic importance of nature in public debate. One example was a collection of writings (summary in English) by influential figures in economy and society, describing how nature ultimately secures the functioning of the economy.

We also brought the widely acclaimed Dasgupta Review, which highlighted the economy’s dependence on nature, into the public discourse.

We promoted the introduction of ecosystem accounting to support decision-making. This work has made the economic benefits of nature visible and supported pilot projects in municipalities such as Tampere and Espoo.

We supported the Finnish financial sector in being among the first to adopt the new TNFD (Taskforce on Nature-related Financial Disclosures) framework and, together with Finnish business, organised a major nature summit for the financial sector in Helsinki.

We also investigated how economic mechanisms can be used to safeguard biodiversity. These include public sector steering instruments, such as taxes and subsidies, as well as voluntary solutions by companies.

Our work also included mapping the future of the Finnish food system and strengthening the security of supply and protein self-sufficiency (summary in English). In addition, the theme accelerated research into the health benefits of nature.

International cooperation

The World Circular Economy Forum (WCEF), first held in June 2017, has become the leading international circular economy event and a showcase for Finnish circular economy expertise in the field. The forum has been organised a total of ten times.

The Coalition of Finance Ministers for Climate Action seeks to integrate climate change into economic policy and financial planning. The cooperation aims to leverage the contribution and economic policy tools of finance ministries – taxation, budgeting, finance, and public procurement – in the fight against climate change. Sitra supported the establishment of the coalition in 2019 at Finland’s initiative and has also served as a partner to the coalition.

Ahead of the 2024 European elections, we initiated a discussion on the direction of the European Union. In a memorandum, we proposed that the EU single market be transformed according to circular economy principles, which would benefit Finnish pioneer companies.

The proposal was included in former Italian Prime Minister Enrico Letta’s report (pdf) on the future of the EU single market. WCEF2024 in Brussels also sent a strong message about the role of the circular economy in securing Europe’s economy. The circular economy and WCEF events have attracted great interest among the world’s rising economic powers; consequently, WCEF 2025 was organised in Brazil, the economic powerhouse of Latin America.

The work culminated in 2024 when the European Commission decided to establish a new Circular Economy Resource Centre based on Sitra’s idea, with its work led from Finland. The centre aims to increase the development and implementation of circular economy policies and business models globally.

Additionally, we led the EU-funded PSLifestyle project, which developed a new test for eight European countries based on Sitra’s Lifestyle Test.

Who was involved?

Under the Sustainability Solutions theme, work has been carried out in extensive cooperation with companies, central government, research institutes, citizens, organisations, and international partners.