Top 10 Sustainable Economies in the World 2025: India’s Rank Revealed and Global Comparisons

The Sustainable Trade Index (STI) 2025, jointly developed by the Hinrich Foundation and the IMD World Competitiveness Center, highlights how nations are managing the delicate balance between economic growth, social inclusion, and environmental responsibility. This year’s results mark a new era in global trade, one that rewards sustainability and long-term resilience over short-term profit.

The United Kingdom claimed the top spot for the first time, dethroning New Zealand, which had dominated the rankings for three consecutive years. Meanwhile, economies like South Korea and Hong Kong surged upward, signaling Asia’s growing emphasis on sustainable policy integration.

Transition from Economic Resilience to Unilateralism

Between 2022 and 2024, global trade policy was defined by resilience, nations focused on diversification, security, and post-pandemic recovery. However, by mid-2025, a new trend emerged: economic unilateralism. This phase is marked by tariff escalations and strategic decoupling between traditional allies such as the US, EU, and China.

These shifts have reshaped trade patterns, prompting countries to pursue self-sufficiency and sustainability-driven competitiveness. The Sustainable Trade Index reflects this transformation — measuring not just economic power but also how responsibly nations grow.

Methodology Behind the Sustainable Trade Index 2025

The STI 2025 evaluates 30 economies through three major pillars:

1. Economic Pillar: Trade diversity, foreign investment, and export sophistication.
2. Societal Pillar: Education, labor rights, and income equality.
3. Environmental Pillar: Carbon emissions, renewable energy adoption, and ecological protection.

Each country receives a composite score out of 100. Together, these factors determine how sustainably nations are integrating into the global economy.

The Global Leaders – Top 10 Sustainable Economies in 2025

Here’s how the Top 10 sustainable economies in the world rank this year:

(Source: Hinrich-IMD Sustainable Trade Index 2025)

1 United Kingdom – The New Global Sustainability Leader

The United Kingdom surged to the top spot in 2025, achieving perfect marks in the environmental pillar. With ambitious carbon neutrality targets and progressive trade policies, the UK demonstrates how economic strength and environmental responsibility can coexist.

Its economic pillar score of 86.45 and societal score of 89.42 reflect balanced progress. The UK’s leadership in green finance, renewable energy, and fair-trade initiatives set new benchmarks globally.

2 New Zealand – Strong Environmental Stewardship

Despite losing its crown, New Zealand remains a sustainability champion, thanks to a nearly perfect environmental score of 98.95. Its policy emphasis on conservation, ethical exports, and renewable resource management continues to inspire emerging economies.

3 Australia – Balancing Economic and Environmental Strengths

With a score of 93.26, Australia combines trade diversification and environmental innovation. The nation maintains a perfect 100 in environmental performance — a testament to its sustainable mining practices and commitment to clean energy transitions.

4 Singapore – A Model of Economic Efficiency

Singapore’s economic pillar score of 99.51 showcases its role as Asia’s most efficient and open trading hub. While environmental challenges persist, its focus on digital trade, logistics innovation, and green infrastructure reflects strong forward momentum.

5 South Korea – Rising Sustainability Star in Asia

Climbing the ranks, South Korea achieved high marks in economic and societal performance. Its investments in renewable technology, semiconductor sustainability, and education reform are reshaping its global trade identity.

6 Hong Kong (SAR) – Economic Power with Social Challenges

With a perfect 100 in economic performance, Hong Kong remains a global financial powerhouse. However, lower societal and environmental scores underscore the city’s need for greater social inclusivity and green policy execution.

7 Japan – Decline Amid Environmental Strengths

Japan slipped two places to 7th despite an impressive environmental score of 91.21. The drop reflects slower societal progress and weaker trade diversification, though its environmental technologies remain world-leading.

8 Canada – Social Inclusion and Environmental Harmony

Canada’s 96.75 societal score ranks among the highest globally, reflecting its commitment to inclusion and equitable trade. Environmental challenges persist, but green tech innovation remains strong.

9 United States – Reducing Carbon Reliance

The United States improved sustainability credentials through a reduction in carbon emissions and natural resource dependency. With an economic score of 94.07, it remains one of the world’s most dynamic and diversified economies.

10 Taiwan – Balancing Trade and Green Goals

Taiwan continues to innovate in sustainable manufacturing and technology. Its moderate yet balanced performance across all three pillars signals steady progress toward long-term sustainability.

India’s Position in the Sustainable Trade Index 2025

India ranked 23rd with a total score of 33.2, signaling gradual but steady progress in sustainable trade integration.

• Economic Pillar: Score 60.0, Rank 18th (down two spots)
• Societal Pillar: Score 23.4, Rank 27th (up one spot)
• Environmental Pillar: Score 37.4, Rank 28th

Despite challenges, India’s economic resilience remains a strong suit. Investments in renewable energy, manufacturing localization, and digital trade continue to push the country forward.