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The McKinsey Center for Business and Environment

Providing insights and solutions so that economies—and the environment—can thrive. New technologies and business models will allow companies, cities, and countries to use natural resources more productively.
McKinsey Center for Business and Environment

Why have we started the Center for Business and Environment?

Growth in the 21st century will not be about managing trade-offs between making profits and preserving the environment. Instead, new technologies and business models will allow companies, cities, and countries to use natural resources more productively. The organizations that master these processes will benefit not only in terms of cleaner air and water but also, we believe, in creating long-term resilience and competitive advantage.

At McKinsey, we have explored these ideas for years; our reports have broken new ground in developing data and analysis on issues ranging from examining deficiencies in the global water supply to making supply chains more energy efficient. The Center for Business and Environment is a natural outgrowth of this work. Through the center, we are working with businesses, governments, and nonprofits to tackle sustainability and resource-productivity-related problems. In doing so, the center can help create new sources of value and influence the development of markets in ways that improve both economic growth and resource use.

What are the center's priorities?

At any given time, the center focuses on a few selected initiatives, working with a range of partners, such as the Ellen MacArthur Foundation, Ocean Conservancy, Rocky Mountain Institute, and Stanford University. Our priorities include:

  • The circular economy: The term refers to processes and practices that go far beyond recycling. In a circular economy, companies design components for re-use so they don't need to be remanufactured and develop service-based business models (i.e., leasing versus ownership, or innovative return policies) to help consumers re-configure their consumption patterns.
  • Integrated Future Mobility: A number of social, economic, and technological trends are poised to disrupt urban mobility. By 2030, mobility innovation could radically transform everything from power systems to the use of public space, while simultaneously introducing a new city dynamism. In our first report, An Integrated Perspective on the Future of Mobility, we found that in 50 metropolitan areas, home to 500 million people, integrated mobility systems could produce benefits, including improved safety and reduced pollution, worth up to $600 billion. Our latest analysis looks at ways to transform urban deliveries, reducing vehicle emissions by as much as 30 percent and costs per parcel by 25-55 percent.

    The Center is working with partners in many cities and regions to design urban transportation systems that reduce congestion and pollution. We are also involved with piloting experimental programs to assess best practices.
  • Energy transitions: Renewables, energy storage, distributed power, efficiency: Technologies related to these and other subjects could result in a dramatically different global energy system. The Center is working with private- and public-sector clients to assess the investment and regulatory issues associated with deploying more efficient, lower-carbon energy and to create new ways to deliver such systems.
  • Ecosystem services: Up to a quarter of the world's agricultural land is severely degraded, and 13 million hectares of forests are cleared each year. Restoring this land represents a major opportunity to reduce greenhouse-gas emissions and to improve food security for millions of people. We are developing business models and solutions that value, protect, and restore the services provided by forests, oceans, wetlands, and other natural ecosystems.

How do we approach these issues?

To reframe the debate and trigger effective action, there needs to be: an authoritative fact base that enables economically sound decision making, leadership engagement from the top, and the development of concrete plans of action.

McKinsey has been thinking through issues related to sustainability and growth for many years. Through our own investment in knowledge and work on more than 2,500 resource-related projects worldwide, we have been part of efforts to address some of the world's most pressing natural-resource issues. For example, we have designed water-management systems, improved supply chains, and created green-growth strategies for entire countries. The center is where the assets that support these initiatives are maintained and renewed. It is also the place where, working with our partners, we turn rigorous analysis into real accomplishment.

Who are we?

The experts at the Center for Business and Environment and their partners all have extensive academic and practical experience on issues relating to sustainability and resource productivity. The center is part of a global network of people and institutions that are at the cutting edge in areas such as resource economics, materials science, ecosystem management, infrastructure engineering, city planning, and industrial design. We can also draw on a number of proprietary economic and change-management tools that McKinsey has developed. This is a long-term program for McKinsey—one to which we are fully committed and uniquely qualified for, given our work with organizations in many sectors, all over the world.

Featured experts

Shannon Bouton

Senior Knowledge Expert, Detroit

Clarisse Magnin-Mallez

Senior Partner, Paris

Featured insights


Public–private collaborations for transforming urban mobility

– Partnerships that let cities take advantage of new mobility services should make urban transportation more accessible, affordable,... and efficient.

The future(s) of mobility: How cities can benefit

– Autonomous vehicles, electric powertrains, vehicle sharing, and other advances are transforming urban mobility. Planning ahead... can help cities capture the benefits of the shift, from cleaner air to easier journeys.

Battery storage: The next disruptive technology in the power sector

– Low-cost storage could transform the power landscape. The implications are profound.

Winds of change? Why offshore wind might be the next big thing

– Falling costs and rising acceptance are promising signs, but the industry needs to keep improving.

Pathways and obstacles to a low-carbon economy

– The energy transition is happening. But the pace of change depends on a range of technical, business, and societal factors.
Article - McKinsey Quarterly

Mapping the benefits of a circular economy

– Most European industries can improve financial performance with specific actions to reconfigure product lifecycles.

When sustainability becomes a factor in valuation

– Sustainability efforts are material to investors only to the extent they affect cash flows. What matters depends on the industry.

The circular economy: Moving from theory to practice

– A special collection of articles about the transition taking place as companies use circular-economy concepts to capture more... value from resources and to provide customers with better experiences.

An integrated perspective on the future of mobility

– A number of social, economic, and technological trends will work together to disrupt mobility, potentially creating three new... urban models by 2030.

The new economics of energy storage

– Energy storage can make money right now. Finding the opportunities requires digging into real-world data.

How big data will revolutionize the global food chain

– Advanced analytics opens vast untapped potential for farmers, investors, and emerging economies to reduce the cost of goods sold.

New at McKinsey

Blog Post

A sea change in how we use plastics

– Many environmental issues are so big that no single institution can tackle them. Take the leakage of plastics into the world’s oceans. By 2025, a staggering 250 million metric tons of plastic are projected to be in the ocean unless action is taken.