Material Economics, a leading sustainability consultancy firm, has joined McKinsey as of December 1. Based in Stockholm, Sweden, this group of 30+ experts specializes in helping clients develop sustainability strategies with a focus on “circularity,” detailed and data-driven approaches for sustainable materials systems in companies and across industries that optimize the use and reuse of products and materials.
“By combining Material Economics’ capabilities and assets with McKinsey’s extensive network, we can broaden and deepen our sustainability offerings, and accelerate our ambition to create a global engine for sustainability operating from the region,” says Tomas Nauclér, co-leader of McKinsey’s Sustainability Practice. “We will be able to help clients with cutting-edge perspectives on circularity, detailed CO2 abatement strategies, and ultimately net-zero transformation.”
The acquisition brings the professional journeys of Material Economics CEO and co-founder Per-Anders Enkvist, along with his co-founders Per Klevnäs and Robert Westerdahl, full circle: they are all McKinsey alumni and will be joining our firm’s Sustainability Practice.
Per-Anders is a former McKinsey partner. He led McKinsey’s work related to climate change and co-developed the McKinsey greenhouse gas abatement cost curve, including 30+ national iterations. It’s one of the most used and quoted tools for thinking quantitatively about the economic, business, and social implications of mitigating climate change.
For many companies, the pathway to net-zero includes a transition to renewable energy sources, like wind and solar power. However, according to Per-Anders, many organizations are not finding this to be enough. “Some 45 percent of global greenhouse gases arise from the production and use of basic materials, products, and food,” he says. “Company after company now finds it must address these challenges in their own production, supply chains, and business models. These issues have long been the focus of our work at Material Economics. I am really excited to join forces with McKinsey to have even more positive impact from the expertise and knowledge we have built up.”
Material Economics brings extensive experience from a range of sustainability and circularity topics across advanced industries, basic materials, consumer, and other sectors. These include designing sustainable operational processes, recycled materials sourcing strategies, product portfolio makeovers, and complete sustainability transformation programs, as well as executive trainings. In addition to project experience, Material Economics brings a set of unique knowledge assets, developed through research with leading institutions.
I am really excited to join forces with McKinsey to have even more positive impact from the expertise and knowledge we have built up.
The acquisition further strengthens our firm’s ability to create sustainable and inclusive growth for our clients. “It enables us to help public- and private-sector organizations with holistic, end-to-end sustainability transformations,” says Tomas, “taking into consideration emission reductions from switching to renewable energy as well as reusing materials in production or recapturing products in the market.”
Material Economics is McKinsey's third acquisition in Sustainability in 2021. Earlier this year, we announced the acquisition of Vivid Economics and Planetrics, a consultancy family with macroeconomic and analytic capabilities. These acquisitions will serve as the foundation for growing a global capability in sustainability and circularity, with the team expected to grow rapidly in geographies around the globe.