Boston Consulting Group (BCG)’s Post

Sustainability isn't just a buzzword - it's a driving force shaping the future of investment! 📈 Industries once synonymous with environmental impact, like oil and gas, are making a remarkable shift towards sustainability. 🌿 Consider the oil and gas sector - global energy titans - historically a cornerstone of investment portfolios. Despite their long-standing dominance, they know that change is coming. Major industry players are actively seeking alternative, sustainable solutions to adapt and thrive. I can see that this pivot responds to shifting consumer demands, and regulatory pressures due to climate action. By integrating sustainability into our investments, we pursue financial returns while contributing to a more equitable, resilient, and sustainable future. Let's talk climate action! 💬 Share your thoughts on alternative approaches and the purpose behind climate initiatives in the comments below! https://lnkd.in/gT-kjnua

The climate-aligned economy of the future will be vastly different. As leaders shift from ambition to action on sustainability, developing a corporate climate action strategy will be vital to the transformation and long-term success

Recommended reading x Forbes article “Green But Unseen: How Business Is Taking Small Steps To Combat Climate Change” 🐾 In this recent article Heather Farmbrough outlines how the so-called third Industrial Revolution - the transition away from fossil fuels - is not always going to come about in leaps and bounds. Nora is featured and shares how she considers 2024 to be a watershed year for investing in sustainability and ESG. “Europe has been at the forefront of sustainable investing, and this trend is likely to continue,” she says. “ESG factors will remain central to investment decisions, with an increased focus on climate change, renewable energy, and sustainable agriculture. She believes this will likely lead to the development of more robust and standardised impact measurement and reporting frameworks, aiding in the assessment and comparison of impact investments’ effectiveness. It’s easy to dismiss small steps, but the man who wants to move a mountain begins by carrying away small stones.” cc: Thea Elin

What's Missing in the Energy Transition Discussion? Empathy. Marina Severinovsky, Head of Sustainability, Americas at Schroders, highlighted the importance of practical and empathetic sustainability investing during a Green Impact Exchange webinar at #ClimateWeekNYC. She emphasized the need for inclusivity and understanding in the climate transition dialogue, bridging the divide between those who understand climate sction and those who feel left behind. Severinovsky's call for a socially equitable approach stresses the need for a collaborative approach to the energy transition. Every community must be involved, ensuring no one is left out of the conversation or its benefits. It's crucial to address the impact on industries and individuals reliant on fossil fuels while striving for environmental advancements. To successfully navigate this transition, society must come together to support affected sectors and individuals. By fostering empathy and cooperation, we can overcome challenges and drive meaningful change. Let's work together toward the energy transition. 🫱🏼🫲🏻 #leadership #sustainability #environment #energytransition #climatechange #esg #socialequity #inclusion #bethesolution #collaboration #empathy

While the green transition presents an unprecedented opportunity for accelerating climate action, it also poses the risk of widening inequalities. The success of the green transition – a transformative shift toward a low-carbon economy – will ultimately be determined by whether equity is placed at its core. In collaboration with BCG and the World Economic Forum's Equitable Transition Initiative, a new report details the value of mobilizing governments and businesses to implement green policies with a strategic focus on fairness and human impact. Read the new report co-authored by BCGers Dave Sivaprasad, Douglas Beal, Nadia S., and Rachana Kanakagiri here: https://lnkd.in/e6xA6UDS

Sustainability is evolving, are you prepared for the change? Take our free quiz which is designed for climate and sustainability professionals. Discover your strengths and receive practical tips to enhance your impact. We’ve grouped the 9 key skills from our report into four simple categories. This quiz will uncover your strengths and areas for growth in each of them. https://lnkd.in/eXnYwVGE

The importance of educating professional services on transition: The race to upskill. As businesses face growing pressure to halve CO₂ emissions by 2030 and achieve Net Zero by 2050, the urgency of upskilling teams has never been clearer. Across all sectors, understanding and acting on decarbonisation strategies is critical for future-proofing business models. Last week, Inès Galichon, Partner at Blunomy, and Antoine Poincaré, Director at AXA Climate School, shared how they co-created the Net Zero School program, designed to equip businesses to accelerate their transition by embedding sustainability into their operations. Key takeaways from the article to keep in mind : - Upskilling in decarbonisation is no longer optional; it’s essential for navigating complex regulatory landscapes, managing risks, and identifying new market opportunities. - Future-proofing your business: Achieving Net Zero demands a full transformation of business models, not just minor adjustments. - Sector-specific insights: Each industry faces unique challenges and opportunities, from renewable energy to material efficiency. - Collaborative solutions: Professional services must understand their clients' sector-specific needs to effectively support decarbonisation. What to know more? Discover the full article here : https://lnkd.in/egM8Grpe

The pursuit of #CorporateSustainability can feel overwhelming at times. With countless frameworks, approaches, and reporting standards, it's easy to get lost on "single issues". I've certainly felt this myself, and it's why I believe it's crucial to step back and focus on the BIG picture: Why are we doing all of this? What's at stake?   I find it essential to adopt a holistic, science-based approach to guide sustainable business. Here's how I see it:   𝟭. 𝗧𝗵𝗲 𝗙𝗼𝘂𝗻𝗱𝗮𝘁𝗶𝗼𝗻: These article presents what I consider the foundation for a sustainable business: the #PlanetaryBoundaries framework. Understanding these nine interconnected boundaries and recognizing the safe operating space for human activities should be the guiding principle for decision-making, setting targets, and measuring progress.   𝟮. 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰 𝗣𝗶𝗹𝗹𝗮𝗿𝘀: ESG (Environmental, Social, and Governance) & SDGs (Sustainable Development Goals). While the SDGs do not directly correspond to the Planetary Boundaries, some of SDG targets can be informed by the Planetary Boundaries. Operationalizing sustainable consumption and production is key - SDG 12.   𝟯. 𝗔𝗰𝘁𝗶𝗼𝗻𝗮𝗯𝗹𝗲 𝗣𝗿𝗮𝗰𝘁𝗶𝗰𝗲𝘀: We can leverage: nature-based solutions, circular economy principles, regenerative practices, social equity, technological innovations, policy advocacy, and others to drive positive change.   𝟰. 𝗚𝗼𝘃𝗲𝗿𝗻𝗮𝗻𝗰𝗲 𝗮𝗻𝗱 𝗔𝗰𝗰𝗼𝘂𝗻𝘁𝗮𝗯𝗶𝗹𝗶𝘁𝘆: Reporting frameworks like SBTi, SASB, ISO 14001, TCFD, CDP, and GRI enable us to track our progress.   We still face challenges and limitations integrating the Planetary Boundaries framework into business, including lack of standardized metrics, effective monitoring systems, and governance issues regarding the commons. We must find integrated solution pathways for businesses to operate within safe and just planetary boundaries, ensuring both living beings and business can thrive. Fostering #SystemsThinking in business is crucial. #SustainableBusiness #PlanetaryHealth #EarthSystem #GlobalCommons #SDGs #Sustainability

The fight against climate change presents companies with new opportunities and challenges. Green Pioneers can leverage the Green Premium (GrPr♻️) to gain access to green markets and financing opportunities, thereby enhancing their brand reputation and improving operational efficiency. Effective management of GrPr♻️ is a crucial tool for navigating rising carbon prices and regulatory compliance. To explore your company's potential, check out our recent report. https://lnkd.in/ddWSUkrF Dr. Akif Koca MERVE DUMANLI Nazım Çınar Duvaryapar Serap TÜRK

Climate change: the defining challenge of our time. Ready to lead the charge? Stakes have never been higher. The planet's future hangs in the balance. Time for bold actions, not just words. In a world where businesses champion sustainability, innovation drives climate solutions, and profits align with the planet's well-being. That's the power of climate leadership. Wondering where to start? 1️⃣ Reduce emissions. Go carbon neutral. 2️⃣ 100% renewable energy? Should be the new normal. 3️⃣ Goodbye, linear economy. Hello, circular revolution! 4️⃣ From sourcing to shipping, supply chains should go green. 5️⃣ Transparency is your middle name. Sustainability reports is your game. 6️⃣ Innovation is in your DNA, from carbon capture to eco-friendly packaging. The benefits are clear: boosted profits 💰, slashed costs, engaged stakeholders, and a thriving planet. 🌍 But here's the thing: sustainability isn't a one-and-done deal. It's a commitment, a journey, a way of doing business. So, the real question is: will you watch from the sidelines or will you lead the climate charge? The time is now. ⏰