Guiding CEOs through the transition to net zero

clock • 2 min read
Guiding CEOs through the transition to net zero

Industry Voice: Business leaders need to act on climate not just for the planet but the wellbeing of their companies too, as a new report from BCG and the World Economic Forum explains

Even as the pressure increases on organisations to cut their emissions, many leaders have underestimated the impacts of climate change on their business models and how quickly they could be affected. CEOs must act not just for the sake of the planet but also to future-proof their organisation.

A new report, a collaboration between BCG and the World Economic Forum, gives CEOs guidance on how to navigate the transition to net zero. The report's clear, high-level net zero transformation framework is based on conversations with CEOs who are leading the way, and will help company chiefs to keep their businesses strong, growing, and sustainable in the years ahead. A key finding of the report is that early adopters of net zero initiatives will see significant competitive advantages.

Early movers stand to gain advantage in at least six key areas:

  1. Climate leaders attract better talent. Organisations with a strong focus on climate can attract better talent to enable the transition and retain employees.
  2. Climate leaders are active in higher-growth segments. Providing solutions to climate change is a huge growth opportunity, with the market for clean technology and climate solutions expanding rapidly.
  3. Climate leaders save on cost. In the transition to net zero, adopting renewable energy sources and implementing efficiency measures can streamline processes and save costs.
  4. Climate leaders reduce risk exposure. Being an early mover in decarbonisation enables businesses to stay ahead of tightening carbon regulations.
  5. Climate leaders retain their access to cheaper capital. Early movers can secure better financing terms and lower-cost capital as they are seen to have a lower risk profile.
  6. Climate leaders create higher shareholder value. The links between leading on climate and higher shareholder returns are becoming increasingly clear. Investors see early movers as creating more value.

Read the full report and BCG insights here.

This article is sponsored by Boston Consulting Group (BCG).

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