Foundation of Social
and Economic Activities

Social and economic activities depend on the biosphere. The biosphere supplies the ecosystem services that sustain human society, such as energy, food, clean air, and water. If this foundation is harmed, the social structures and economic systems above cannot endure. Moreover, despite economic activity circulating capital and generating value and wealth, its production and consumption occur within the constraints of the biosphere's resources.

The “SDGs Wedding Cake Model,” proposed by the Stockholm Resilience Centre, shows how economic, social, and natural hierarchies are interconnected. In effect, just like a wedding cake relies on its base, social systems and economic growth remain viable only when environmental and social stability are maintained. A decline in ecosystem service quality or quantity due to biosphere degradation will result in a destabilized society, which will ultimately negatively impact economic growth. For example, forest degradation due to over-logging or neglect results in a decline in its watershed conservation role, which supports water resources by enabling rainfall to soak into the soil and curbing rapid river flooding during heavy rain. Moreover, when trees are lost, the likelihood of landslides and slope failures increases, creating concerns about social impacts, such as unstable water supplies and more frequent disasters. Regions where water availability is unreliable or disasters occur often will cause society itself to become unstable, which will, in turn, make sustained economic growth difficult.
A stable biosphere, which forms the basis for economic development and growth, is indispensable. However, social and economic activities may harm nature, raising concerns that the biosphere supporting these activities could deteriorate. Please refer to “Material Transport Associated with Social and Economic Activities”, “Relationship Between Business/Economic Activities and Nature,” and “Examples of How Business Activities Impact Nature.”