Even as organizations are under increasing pressure to reduce emissions, many leaders have underestimated the impact of climate change on their business models and how quickly they can be affected. CEOs must act not only for the planet, but also to secure the future of their organization.
A new report, created jointly between the BCG and the World Economic Forum, gives leaders recommendations on how to move to pure zero. The clear, high-level structure of the net zero transformation report is based on conversations with leading CEOs and will help CEOs keep their business strong, growing and sustainable in the years to come. The key conclusion of the report is that the first participants of zero-value initiatives will see significant competitive advantages.
Early entrants may benefit from at least six key areas:
- Climate leaders attract the best talent. Climate-oriented organizations can attract the best talent to ensure transition and retain employees.
- Climate leaders are actively working in higher growth segments. Providing climate change solutions is a huge opportunity for growth, and the market for clean technologies and climate solutions is expanding rapidly.
- Climate leaders are saving on cost. With the transition to pure zero, the use of renewable energy sources and the introduction of efficiency measures can streamline processes and save costs.
- Climate leaders reduce risk. As an initial step in decarbonisation, businesses may be ahead of tightening carbon regulations.
- Climate leaders retain access to cheaper capital. Early participants can provide better financing terms and lower cost of capital because they have a lower risk profile.
- Climate leaders create higher shareholder value. The link between leading climate indicators and higher shareholder returns is becoming increasingly clear. Investors see that the first steps create great value.
Read the full BCG report and assessment here.
This article is sponsored by Boston Consulting Group (BCG).