INTRODUCING THE

SUSTAINABLE
TRADE INDEX
2022

Participation in the international

trading system has long been a
priority for national governments.

IN MANY CASES, however, the pursuit

of economic growth has superseded any
concerns about the environment or society.

Visible impacts
of unsustainable trade

Economic Societal Environmental

The number of Across seven emerging Extreme climate events can
protectionist trade markets, income inequality impede maritime shipping,
policies in effect has has risen beyond levels which accounts for 80% of
increased by 663% seen in the five worst global trade volume
since 2009 OECD countries

S O U R C E Balestra, Carlotta, et al.

“Inequalities in emerging economies:
Informing the policy dialogue on inclusive
S O U R C E Global Trade Alert (2021) growth.” (2018) S O U R C E OECD

To avoid negative consequences such as these,

it’s important to measure whether an economy is
trading in a sustainable manner, and whether it
will be able to continue doing so.

Measuring sustainable trade

THE HINRICH-IMD SUSTAINABLE TRADE
INDEX (STI) measures an economy’s ability STI coverage
to participate in the global trading system
in a manner that supports long-term
economic growth, societal development, 30
and environmental protection. Economies worldwide

69% Constituents’ share of

global GDP

63% Constituents’ share of

global population

The three pillars of sustainability

EACH ECONOMY in the STI is scored across three Overall score
Each economy’s three pillar scores are
pillars of trade sustainability, which are supported averaged to obtain an overall STI score.
by 70 individual indicators. This is once again rescaled between 0
and 100.

Economic
Measures an economy’s ability to
ensure and promote economic growth FOCUS AREAS
through international trade.

Export Trade
diversification infrastructure
7 Indicators

Sub-indicator
29 s

Environmental Societal
Measures the extent to Captures social factors
ors

which an economy that contribute to an

9 Su b

ic at

engages in international economy’s capacity to

-i n

trade in a way that

in d

trade internationally
rs
8 In

at
di

b-

is environmentally u
ato

or
c

S over the long term.

s 13
dic

sustainable.
d ic
at

rs
In

4
o

FOCUS AREAS FOCUS AREAS

Controls for Share of natural Education and Political

air pollution resources in labor standards stability
exports

The results
SCORE DISTRIBUTION

100 0

Russia
UK 2 30

7 Canada

4 Japan 9 US
13 China
8
Hong Kong South Korea
29 10 Taiwan
26 India 3 16
Pakistan 20 Vietnam
Mexico
23 Laos
Malay. 12 Philippines
Sri Lanka 22 14
25 Brunei Ecuador 19
Bangladesh 24
Myanmar 28 Peru 21
18 Indonesia 27 Papua New Guinea
15
Thai-
land 6 Australia Chile 11

Singapore 5 17
Cambodia
1 New Zealand

Top 3 Overview
New Zealand United Kingdom Hong Kong
Pillar Score Rank Pillar Score Rank Pillar Score Rank

Economic 73.0 7 Economic 76.7 5 Economic 100 1

Societal 100 1 Societal 92.2 4 Societal 71.4 10
1 Environmental 100 1 2 Environmental 91.6 2 3 Environmental 74.8 8

Income and sustainability

Do higher income economies tend to trade more sustainably?
As shown in the chart below, there is a clear positive correlation between the two
variables. Past the $50,000 GDP per capita milestone, however, this trend appears
to reverse.

The relationship between STI rank and per capita GDP

Rank Trend reversal
New Zealand
1
Hong Kong
Japan
UK Singapore
Australia
5
South Korea

Canada
Chile
10 US
Malaysia Taiwan
Thailand
Philippines
15 Cambodia China
Indonesia
Ecuador Mexico
Vietnam
20
Laos
Bangladesh
Peru Brunei
Sri Lanka
25

Myanmar India
Pakistan Papua New Guinea Russia
30
30 25 20 15 10 5 0

GDP Per Capita

Rank

These findings highlight the While economic performance is certainly a priority, it

does not guarantee long-term sustainability. Other
complexity of sustainable trade.
factors, such as societal outcomes and environmental
protection, have equal ramifications.

To learn more about the Sustainable Trade Index,

and to see a comprehensive breakdown of the rankings:

 DOWNLOAD THE EXECUTIVE SUMMARY

P R O D U C E D I N PA R T N E R SH I P W I T H