Triodos Banks’ chief economist, Hans Stegeman, is at the forefront of a transformative movement in economic thinking: ‘post-growth’, also known as ‘degrowth’. Building on the ideas he shared in his earlier article, "What is degrowth or post-growth?", Hans has been championing a shift away from traditional growth-focused ways of thinking. He recently contributed to a panel discussion at the Ethical Consumer Conference in November 2024, which focused on exploring post-growth economics.

In this article, we’ll delve into the key themes explored by Hans in the panel and the practical steps needed for a post-growth transition.

Addressing the deep-seated reliance on growth

Hans focuses on breaking down what he calls the “growth imperative” within modern economies. He explains why growth has become a necessity in how we currently manage the economy and outlines practical ways to change this so that we foster resilience and sustainability instead.

1. The ‘growth imperative’

Hans makes the point that our current way of managing our economy is “flawed by design” as it only works if we keep doing more: bigger profits, more activity, more buying and producing ‘stuff’. He argues that this dependency on growth stems from several intertwining issues, and gives several examples of where we see it in action.

One example is in healthcare. With an aging population, and increasing demands on services, funding costs are rising. This means that governments often need to spend more on healthcare and find ways to increase that funding. Therefore, they need to raise more money – often through taxing working people. To do this successfully requires incomes to go up, which is seen as a result of economic growth.

Another example is our pensions. Pension funds often demand high returns, creating pressure for companies to make bigger and bigger profits. If the pension fund manager has one objective, grow the fund, it usually results in the funding of practices that use up resource and cause harm to the planet. People become often far removed from the money in their pension funds and may not even realise that its funding practices that don’t align with their values.

2. The role of finance in driving change

The financial sector is often focused on short-term profits and growth. This kind of growth may come through investments in speculative markets, rather than in projects that has a positive impact on our lives. For example, banks can choose to invest in affordable housing, to help ensure everyone has a place to live, but this may not maximise their profits.

At Triodos Bank, we believe the financial sector has the power to change the way our economy works. This is why we became the first bank to publicly call for a post-growth transition.

3. Reimaging the economy

It is very difficult to imagine what a different kind of economic system might look like because our current ways of doing things are so much a part of our everyday lives. Hans emphasises the importance of practical demonstrations and of grassroots initiatives.

Many of the projects that Triodos Bank finances are examples of organisations that are thinking differently about growth. For example, we support community energy initiatives that use their income to support local people, and arts and culture institutions that bring communities together. By choosing how they lend and invest, banks have the power to decide which sectors they wish to grow, and what impact they can have on people, planet and the economy.

Another example of post-growth in action is within so-called “wellbeing economics”. Across the UK, we see pioneering local leaders moving away from a focus on growing productivity and GDP, and instead thinking about how they can support positive social and environmental change at a local level. A recent report from the Centre for Thriving Places tells the stories of this local community action.

Post-growth in action 

It can feel overwhelming to know where to start when it comes to taking action in our everyday lives, especially when the problem can seem so huge and out of our hands at times. 

Below we've outlined some steps you can start to take to advocate for a post-growth transition.  

Check what your pension is funding 

UK pension schemes invest a staggering £88 billion in fossil fuel companies. That’s £3,000 per pension holder in businesses like Shell and BP. Pensions have the potential to be invested in climate solutions instead. Pensions can sometimes seem 'out of sight, out of mind'. But no matter what age you are, it's important to check exactly what your pension is funding and change what its invested in to align with your values. 

Reduce how much you're consuming 

Every corner of the internet is encouraging us to buy more and more and more. Before buying a new fridge when yours breaks, consider whether it can be repaired at a local repair shop. Before you throw out your socks that have holes in them, consider whether you can mend them. Adopting a mindset of reusing can not just help how much we're consuming in the everday now, but can also help to save some money and put it to better use. 

Vote for people whose values align 

While it may not always be possible to rely on governments to align on the principles of post-growth economics, it is possible to support candidates who are interested in "the real economy", as Hans explains it: such as housing, climate change, healthcare, education. Even locally, candidates who want to ensure communities are properly funded can make the steps needed to influence further. 

Invest in your local community 

Community can be a powerful tool for sharing knowledge and creating grassroots initiatives that support people and the planet. Supporting your local repair shop, youth group, community garden and more can be an empowering way of adopting a post-growth mindset into your everyday life. 

Focus on what is possible today 

It's easy to feel disheartened by the current state of the world which makes it hard to imagine how a post-growth future is possible. But there are examples of a post-growth economy that already exist. Hans recently did an interview on The Break Down with Adrienne Buller. It's a great way of further understanding the ideas around post-growth and where there are examples of this working today. 

Explore further thinking 

Keep yourself engaged on this topic. A great place to start is Triodos' podcast Money for Change where Hans goes into more depth on post-growth thinking. 

Hans Stegeman’s insights remind us that while the road to a post-growth future is complex, the financial sector can play a pivotal role in driving this transition. By fostering sufficiency, equity, and ecological integrity, we can pave the way for an economy that truly serves people and the planet.