2 days Ago
A quarter of companies worldwide across industries have managed to reduce their carbon footprint and make meaningful financial gains that benefit them and their employees, shareholders and stakeholders, the fourth edition of the 'Carbon Emissions' report published by management consultancy Boston Consulting Group (BCG) and AI sustainability software company CO2 AI states. About 25% of the 1 864 companies surveyed are realising financial net benefits of 7% or more of their yearly revenues from reducing emissions in line with their ambitions. This is an average of $200-million a year in financial benefits per company that are being realised, says BCG X MD and partner and Climate and Sustainability data and digital solutions leader Diana Dimitrova.
"While decarbonisation is vital for everyone worldwide, the agency of organisations must be in place and this is often measured in financial returns. Some companies are able to meet both climate and financial goals," she notes. "This is where the transition is coming into balance.
There is a way to decarbonise and generate benefits in the way the market system is set up," she emphasises. This is very good news because, even if all countries worldwide meet their Nationally Determined Contributions to reducing greenhouse-gas emissions, the world will only limit warming to more than 2 °C above preindustrial levels. Further action will be needed to limit warming to within 2 °C above preindustrial levels, she says.
Current commitments and actions are insufficient to achieve the goal of limiting global warming to below 1.5 °C above pre-industrial levels. Urgent action and support are needed to ramp up implementation of emissions mitigation efforts, says BCG X MD and senior partner and Global Climate and Sustainability leader Hubertus Meinecke.
A significant amount of capital, about $3-trillion to $5-trillion a year, will be required to transition the world to net-zero by 2050. "Those who move first will probably have an..
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