On Wednesday, October 8, a workshop on Measuring Wealth: Beyond GDP was held by the UK's Office for National Statistics (ONS), at which aiESG representative Managi spoke. In this report, we present Manaki's lecture, along with examples of the application of the UN/New National Wealth Indicators at aiESG, including the use of satellite imagery.

The workshop program is as follows

1:00- 1:05 pm | Introduction, welcome remarks, and scene-setting
Chair:. Richard Heys
Director and Chief Economist (Acting), ONS

Session 1| 13:05-13:35pm| ONS Using National Accounting to Define Inclusive Wealth
Presenter:. Cliodhna Taylor
Head of Well-being and Economic Statistics Innovation | Wellbeing, Innovation, and Productivity


Session 2| 13:35- 14:05pm | Inclusive wealth: real usage of capital using global and satellite data
Presenter:. Shunsuke Managi
Professor of Technology and Policy and the Director of the Urban Institute at Kyushu University, Japan

Session 3| 14:05-14:35pm | Comprehensive Wealth in the UK: data and discussion
Presenter:. Rob Smith
Midsummer Analytics and Senior Associate, International Institute for Sustainable Development

Session 4| 14:35- 15:05pm | Unresolved issues in Natural Capital drawing on inconsistencies in asset classifications between global manuals
Presenter:. Bram Edens
Head of section for environmental-economic accounts and supply-use tables at the OECD's Statistics and Data Directorate

3:05pm- 3:55pm | Discussion

3:55-4:00pm | Closing remarks

Event Session Abstracts

International agreement and progress on hard-to-measure capital

1. the importance of international agreements
It has been pointed out that GDP (Gross Domestic Product), which has traditionally been the main indicator of economic growth, has limitations in that it fails to capture "non-financial" values such as wellbeing, natural capital, and human capital, as well as negative aspects such as environmental destruction and widening inequality.

In order to measure the true wealth and sustainability of humankind, it is essential to quantitatively evaluate these non-financial values, which have been considered abstract and "unmeasurable," and incorporate them into corporate and municipal activities. This quantification and the development of an international framework is a crucial international challenge in order to shift the criteria for policy and investment decisions to "growth indicators beyond GDP" (Beyond GDP).

2. state of progress: from "not measurable" to "measurable" phase
Currently, the United Nations and other international organizations are accelerating the development of a framework for quantifying happiness and sustainability with Beyond GDP. As a result, non-financial values are being systematized at the UN level from an "abstract concept" to something that can be measured.
(See also:https://aiesg.co.jp/topics/report/250515-international-esg-trends/)

Two concrete examples of this progress are the following two trends that have been introduced as representative efforts by the United Nations and other countries.

Name of Indicator Measured Object and Objective

New national wealth index (Inclusive wealth, Comprehensive wealth): Integrates natural, human, and artificial capital, and visualizes the deterioration and accumulation of capital as the basis for economic growth in monetary value. It quantifies "sustainable wealth" that will remain for future generations.
Well-being indicators: Integrate elements of health, education, environment, and income at the regional and social level.Well-beingquantitatively and apply it to policy evaluation and non-financial disclosure.

aiESG's efforts have contributed significantly in providing the technical and academic foundation in the international progress of the aforementioned "Beyond GDP" initiative.

In particular, the following two studies, highlighted as representative initiatives in the UN's SDG Knowledge Hub, were published from our laboratory.

New National Wealth Index: In a study published in our sister journal Nature and in Science, we have developed an index that integrates capital, including natural and human capital, to quantify sustainable wealth. This is an innovative method for measuring sustainable economic growth by assessing non-financial values in terms of monetary values.

Well-Being Index: In a study published in Sustainability Science, we developed a method for quantifying quality of life (well-being).

The results of these studies not only lead international discussions, but also form the basis for scientific evidence and implementable solutions for companies and municipalities, through organizations such as aiESG, to disclose non-financial information quantitatively and make their social value and contribution to wellbeing visible.

This article is based on a presentation by aiESG's representative, Kyushu University Senior Professor Manaki. If you are a company or municipality interested in wellbeing and comprehensive capital assessment, please feel free to contact us.
About aIESG's services:https://aiesg.co.jp/service/