There is a cost to going green but the cost of not doing so is likely to be greater. The good news, says Mekala Krishnan of Consultants McKinsey is that the conversation is no longer ‘do we transition’ but ‘how do we do it — and do it well’.
As companies globally pledge to achieve net-zero emissions of greenhouse gases, what does that mean in practice?
While climate change will affect us all — every country, sector and community — it won’t be to the same degree, according to a recent report by McKinsey, The net-zero transition: What it would cost, what it could bring.
Spend now for benefits later
Among the many changes needed is a big increase in annual spending on physical assets to 9.2 trillion dollars, which is a rise of more than a third. To put it in context that’s an annual increase of 3.5 trillion dollars, equivalent to half of all global corporate profits.
And it has to start now. Any added delay or disruption to the transition adds to the risk of energy supply shortages, isolated infrastructure, inflationary price increases, outdated skills and lost jobs.
Conversely, if the transition to net-zero emissions is managed well, it creates efficiencies and opens up valuable markets for low-emission products and services as well as other growth opportunities.
With sustainability central to every part of the business, it becomes the deciding factor in everything from strategies for new and existing products and managing supply chains to assessing risk.
It’s also better business. Consumers will reward those companies they regard as more sustainable. More than three-quarters (77%) say it’s important that brands are sustainable and environmentally responsible.
Simpler than ever to get involved
Carbon offset services provide a convenient and stress-free way to meet your social responsibility concerns.
With Lenovo, CO2 offset that starts at the point of purchase with a program that offers:
Offset the carbon cost of hardware over an average lifecycle of up to 5 years, including manufacture, shipping and usage.
Have the certification to prove you have met governance standards and achieve your own ESG targets more easily.
Contribute to a more sustainable future and choose the sustainability option you prefer, where you feel it will make the most difference and is most aligned with your business.
Discover how Lenovo can help you make the transition to net zero easier and faster.
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Green is the colour of resilience