Gütersloh, Germany – On Wednesday, May 28, 2025, the Bertelsmann Stiftung’s Sustainable Governance Indicators (SGI) released a report that highlights the challenges facing OECD and EU countries in the midst of a shifting geopolitical landscape, sluggish growth, digital transformation, the climate crisis, and demographic change. The report reveals that while countries such as Denmark, Finland, Sweden, and Norway are well-positioned to tackle these challenges, most advanced economies are not adequately equipped to deliver sustainable policies.
The analysis, based on 144 indicators, shows that the lack of institutional frameworks and long-term policy strategies is hindering these countries from effectively addressing pressing issues such as strengthening democratic resilience, boosting economic adaptability, responding to the climate crisis, and managing demographic change. In 11 of the 30 OECD countries analyzed, a fragmented policy mix and weak democratic oversight pose a serious threat to sustainable governance. Among the G7 economies, Japan, Italy, the United States, and Canada are at risk of neglecting the interests of future generations.
According to Christof Schiller, sustainable governance expert at the Bertelsmann Stiftung, “The Nordic states are far better prepared. They offer strong democratic checks and public participation opportunities, comprehensive economic, social and environmental policies, and forward-looking administrative structures.” The report highlights the top performers in democratic oversight as Sweden, Norway, Denmark, and Finland, with Norway successfully limiting the influence of political extremism.
The report also points out the need for a structural upgrade in the daily workings of government, including breaking down ministerial silos, increasing transparency, and strengthening the capacity for strategic foresight. Finland and Denmark lead the ranking for anticipatory governance, with Finland’s Prime Minister’s Office reviewing legislative proposals to improve their quality through enhanced impact assessments and optimized timing and planning.
When it comes to aligning national economic, social, and environmental policies with sustainability, all OECD and EU countries face significant challenges. These include designing coherent strategies for economic transformation, accelerating the shift to a circular economy, and advancing mission-oriented innovation policies. The top performers in this area are Sweden, Denmark, Norway, and Finland. “In Denmark, policy design is guided by evaluations and sustainability assessments,” says Thorsten Hellmann, economic policy expert at the Bertelsmann Stiftung. “Impact assessments for new laws are publicly available, which increases transparency. If a policy falls short of expectations, adjustments are typically made.”
The report also includes contact information for Christof Schiller and Thorsten Hellmann, who are available for further inquiries. The Bertelsmann Stiftung was established in 1977 by Reinhard Mohn and is committed to ensuring that everyone in society can participate in political, economic, and cultural life. Their programs include Education and Next Generation, Democracy and Social Cohesion, Digitalization and the Common Good, Europe’s Future, Health, and Sustainable Social Market Economies. For more information, please visit www.bertelsmann-stiftung.de/en/home.
