NEIL Gray has said a implementing a wellbeing economy makes “sound business sense” after hundreds of charities and organisations called for action on the matter from the First Minister.
Gray was appointed earlier this year as Scotland’s Wellbeing Economy Secretary, prioritising the shift away from gauging prosperity using traditional economic measures such as GDP.
He made the comments after an open letter was sent to Humza Yousaf by more than 200 charities, unions, academics and campaigners calling for the Scottish Government to use devolved tax powers to spread wealth, invest further in social security, universal basic services, pay for public sector workers and environmental improvements.
Scotland’s National Performance Framework, the campaigners say, should also be re-purposed to track wellbeing.
On a visit to ACS Clothing near Glasgow, Gray heard how a major creditor was so impressed with the business’s approach to fir work and environmental practices, it agreed to convert a debt to equity - investing enough to ensure the firm could continue through the pandemic.
In the later stages of Covid-19, an ethical investor became aware of ACS’s reputation and also took a stake.
Now the sustainable fashion company is expanding to take on 20 new apprentices - four graduates and 16 modern apprentices across textile care and its warehouse operations.
Gray said: “ACS Clothing is proof that fair work and sustainability make sound business sense.
“This imaginative and successful company captures what a wellbeing economy is all about - supporting a transition to net zero while practicing fair work principles such as paying the real Living Wage, listening to its workforce and offering apprenticeships and internships.
“In return its staff are incentivised, employee turnover is reduced and investors are increasingly attracted by its ethics and ethos.”
Chief Operating Officer Anthony Burns said: "At the start of the pandemic, we faced significant financial strain, as suppliers demanded payment and customers halted orders, leading to a bleak outlook.
“However, our investment in circular business models, and our positive environmental and social impacts, were rewarded when Circularity Capital, a well-known Scottish ethical investment firm invested significantly in our business.
“At ACS our commitment to fair work is not just a choice, but a responsibility we owe to our communities. It is the unwavering dedication to create environments where dignity, equality, and justice thrive, ensuring that every individual's efforts are valued and rewarded without bias or exploitation."
While the open letter said the group was “encouraged” by the creation of Gray’s role, it added: “We are concerned by the lack of substantive progress in redesigning our economy.
“We need a robust plan to put the wellbeing of people and nature at the heart of our economy. We have run out of time for talk, what we need now is action.”
