Sustainability is nonnegotiable—it is a debt we owe to future generations. While decision makers understand the urgency of this goal, they also often view sustainability as a compulsory obligation. Being green and achieving growth are not mutually exclusive. Pursuing both together opens new opportunities, from carbon-neutral industrial production to a comprehensive circular economy.
Playing offense now
While a much bigger push is needed, redistribution to meet net-zero targets is already underway. This shift is boosting demand for climate-friendly goods and services and the green energy, equipment, and infrastructure needed to produce them.
“The net-zero transition: What it would cost, what it would bring,”
Achieving net zero globally by 2050 would require a 60 percent increase in private-sector investment over today’s level. This represents $9.2 trillion annually through 2050—the largest capital reallocation since World War II. Such a sweeping effort requires bold action that is both swift and effective.
“Playing offense to create value in the net-zero transition,”
This report quantifies the scope of the resulting business opportunity and highlighted leading companies’ successful approaches. In this context, we have identified 11 value pools that could generate annual sales of more than $12 trillion by 2030.
Transforming high-emission companies
Hard-to-abate sectors account for 81 percent of the global economy’s carbon footprint. We are working with these industries to accelerate the transition to net-zero emissions. Net-zero transitions for complex energy and industrial systems are extensive and require changes in all areas, from capital allocation and product design to land use. We help our clients accelerate green transformations while ensuring that the economy isn’t negatively impacted.
McKinsey Platform for Climate Technologies
We launched the McKinsey Platform for Climate Technologies (MPCT) to help clients plan, execute, and scale the implementation of critical climate technologies. We focus on the most critical technologies: those with the potential to transform our sources of energy for every industry, region, and community.
$1 billion investment
Over the next five years, we’re investing $1 billion to help our clients, lead innovation, and grow green. Some of this investment goes to strategic acquisitions to enhance our capabilities, such as Vivid Economics, Planetrics, and Material Economics. Other examples include the McKinsey Academy for Sustainability, which trains boards, executives, and colleagues on climate change, and several technology centers of excellence, which develop groundbreaking innovations for batteries, hydrogen, carbon capture, nature-based solutions, water, plastics, and more.
Our own decarbonization efforts
McKinsey has committed to achieving a net-zero climate balance by 2030. As a key milestone in this process, we have set scientifically sound targets, which have been validated by the Science Based Targets initiative in line with a 1.5° degree pathway. A multipronged approach in all areas of our firm will enable us to fulfill these commitments and reduce our carbon footprint.
We are reducing Scope 1 and 2 absolute emissions from our vehicles and offices by 25 percent, primarily by electrifying our vehicle fleet, offering alternative mobility packages, switching to 100 percent renewable electricity, and designing our offices worldwide to be more sustainable.
For our Scope 3 greenhouse gas emissions—indirect emissions from internal and client travel—we are working to achieve our validated, scientifically-based target for 2025 of reducing travel costs per employee by 30 percent. We seek to reach this goal through hybrid work models and sustainable aviation fuels (SAF). As a firm, we can and will go beyond our official target to fulfill our commitment to reach climate neutrality by 2030.
Since 2018, we have been carbon neutral by compensating for all emissions that we have not yet been able to eliminate.
Environmental, Social, and Governance (ESG) Report
Our annual environmental, social, and governance (ESG) report captures our measurable progress toward driving positive, enduring change in the world.