Current headwinds for climate action. Companies and consumers are being buffeted by a number of challenges today – inflation and a looming recession, the energy crisis in Europe and heightened food risks. Society must not, however, allow these near-term problems to distract us from moving with urgency on the growing threat posed by a warming world. Climate action remains insufficient today. Current projections hold that emissions will rise nearly 11% by 2030 versus 2010, far from the 43% decline that is needed to limit warming to 1.5°C. Although adaptation and resilience were at the top of the COP27 agenda, with some progress being made through the establishment of a loss and damage fund, only a fraction of nationally determined contributions were updated. As United Nations secretary general Antonio Guterres stated plainly: “We are on a highway to climate hell with our foot still on the accelerator”.
The role and opportunity for corporate climate action becomes primary. For roughly two decades, governments called upon the private sector to engage on climate. But that dynamic has shifted. Corporate leaders are increasingly urging governments to act while moving on their own to take action that will preserve our economies and livelihoods alike. US Special Presidential Envoy for Climate John Kerry has spoken frequently of the critical private sector role, noting: “I believe the private sector has the ability to win this battle for us”. Early movers in various sectors have started to find a market for their green products. They understand how decarbonization commitments made by consumer-facing corporations and evolving government policy will drive green demand.
This World Economic Forum and Boston Consulting Group report explicitly takes a business perspective on how to find, create and shape those green markets.
Winning in green markets. While sustainability still often comes at a cost today, green leaders can thrive, nonetheless. A critical element of successful go-to-market strategies is collaboration. Leaders understand that partnership is the new leadership.
Companies can work with suppliers to secure and develop supply, often sharing the costs across the value chain. They can partner with customers to design and bring new green products to market and engage with government to drive the right enabling environment. They can even work with competitors to scale the critical supply, demand, transparency and infrastructure needed for green markets to materialize.
The findings of this report are based on quantitative and qualitative evidence from across the private and public sectors. The analysis is based on company sustainability commitments, announced green technology costs, as well as survey responses from over 65 companies and interviews with more than 20 sustainability leaders across various sectors and geographies.
We remain in the decade of urgent delivery.
The benefits of action are clear, and the costs of inaction pose a threat to humanity and to biodiversity more broadly. Decisive corporate action has become an imperative and an opportunity to not only lead in a growing market but to also create, shape and scale the green markets that will transform our economy and protect our planet.
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