Sustainable and inclusive growth: A weekly briefing

Climate technologies must be scaled faster to meet net-zero goals. Our weekly digest of McKinsey insights explores that topic and more.

Sustainable and inclusive growth: Briefing note #37, March 16, 2023

To meet current net-zero targets, climate technologies will need to be scaled faster. But challenges remain—particularly amid an uncertain economic moment. This week, a McKinsey article outlines promising areas of action for builders of green businesses. A separate piece looks at growth in climate-related investing and highlights key factors for investors to consider. Elsewhere, McKinsey research examines opportunities for recyclers of electric-vehicle (EV) batteries.

Climate tech must accelerate rapidly to meet net-zero commitments. Even mature technologies such as wind and solar will need to scale six to 14 times faster (exhibit). Bold decisions are necessary to stave off the direst climate change outcomes. Senior partners Rob Bland, Laura Corb, Tomas Nauclér, and coauthors suggest three moves to make now: develop supply chains by seeking partnerships across sectors (upstream, downstream, and horizontally); close the skills gap (by, for instance, launching new training facilities or partnering with universities on talent-building initiatives); and explore new financing avenues (such as blended finance models, which mix private, public, and philanthropic funding).

Climate-related investments grew significantly in 2022—up 6.6 percent from the year before—despite secular headwinds. Growth in energy transition financing has been bolstered by both policy support and general alignment in capital markets. Senior partners Fredrik Dahlqvist, Anders Rasmussen, and coauthors outline several factors essential to the success of climate-related investments. Among them: demonstrated effectiveness of technologies, a clear path to cost competitiveness for products, and the ability of leadership teams to attract necessary talent.

More EVs on roads means more EV batteries—and a greater need to recycle those batteries. More than 100 million EV batteries are expected to be retired in the next decade. These batteries can be refurbished and given second lives in other applications, but the battery recycling market remains far from maturity. Senior partner Martin Linder and coauthors say that to be successful, battery recyclers should secure sufficient access to end-of-life batteries, build partnerships up and down the recycling value chain, and keep tabs on the latest trends in battery design.

Here are other recent notable findings from McKinsey research:

A recent edition of Author Talks features former IBM chair and CEO Ginni Rometty speaking about her new book, Good Power: Leading Positive Change in Our Lives, Work, and World (Harvard Business Review Press, March 2023). The author describes her journey from childhood poverty to the C-suite and explains her conviction that asking for help is a sign of strength.

McKinsey is striving to create inclusive growth through collaborations with clients and local communities. By preparing students for the jobs of tomorrow, propelling wealth creation for working families, and supporting racial equity, McKinsey is helping build an economy that works for everyone. To learn more about McKinsey’s efforts to create an inclusive economy, visit McKinsey.com.

Sustainable and inclusive growth: Briefing note #36, March 9, 2023

Decarbonizing cement and concrete production could lead to business opportunities. Our weekly digest of McKinsey insights explores that topic and more.

Global demand for cement and concrete nearly tripled over the past 20 years and is expected to remain consistent in upcoming decades. But producing these materials is a major contributor to carbon dioxide emissions. This week, McKinsey research looks at strategies for creating sustainable—and profitable—cement value chains. Elsewhere: an examination of the shifting landscape for real estate investors suggests that they should embrace sustainability initiatives as opportunities for value creation. And a piece about design thinking offers tips on how best to design with sustainability in mind.

Circular technologies could help cement players generate profits while reducing emissions. Examples of circular approaches include deriving energy from recovered heat, capturing and storing carbon, and repurposing waste materials (for example, turning demolished structures into gravel for roads). Senior partners Jukka Maksimainen, Daniel Pacthod, Humayun Tai, Michel Van Hoey, and coauthors say that the use of circular technologies could help eliminate or mitigate roughly two billion metric tons of carbon dioxide emissions by 2050.

Climate change is already shaping real estate valuations. Real estate investors would be wise to consider physical risks (such as floods) and transition risks (such as changes in regulatory requirements) that could stem from climate-related disruptions. Amid a broader examination of the real estate landscape, senior partners Daniele Chiarella and Aditya Sanghvi and coauthors offer guidance for real estate players looking to navigate climate change. Among their suggestions: carefully evaluate climate-related risks and opportunities attached to any prospective property, consider decarbonizing existing properties to enhance their value, and explore potential new businesses (such as offering emissions reduction services to other property owners).

Careful product design can aid decarbonization efforts. A McKinsey Explainer about design thinking outlines strategies for generating sustainable products. Smart design approaches can reduce emissions from both a product’s manufacturing process and its end use. “Skinny design” can create products that require less material and packaging.

Here are other recent notable findings from McKinsey research:

  • Some rules for growth are more powerful than others. Senior partners Chris Bradley and Jill Zucker and coauthors say that winning market share from competitors and focusing on regional dominance are both highly correlated with growth, while programmatic mergers and acquisitions seem to have less impact.
  • McKinsey’s global director of geopolitical risk Ziad Haider spoke with executives from Intel, Google, and Pfizer about how they build resilience in a continually changing risk environment. Getting perspectives from first-person sources on the ground—while avoiding disinformation—can help bring clarity to risk calculations.
  • Partner Robin Riedel and coauthors say that advanced air mobility (which involves flights as short as a few miles, often in technologically advanced aircraft) will thrive only if the “hassle factor” is eliminated. Companies can consider running more frequent flights even if available seats exceed demand, while looking for ways to ease passengers’ transitions between ground transport and air options.

A recent edition of Author Talks features leadership coach Sally Helgesen speaking about her new book, Rising Together: How We Can Bridge Divides and Create a More Inclusive Workplace (Hachette Book Group, February 2023). The author describes her simple test for identifying inclusive workplaces: do most employees speak about the organization as “we” or as “they”?

McKinsey is striving to create inclusive growth through collaborations with clients and local communities. By preparing students for the jobs of tomorrow, propelling wealth creation for working families, and supporting racial equity, McKinsey is helping build an economy that works for everyone. To learn more about McKinsey’s efforts to create an inclusive economy, visit McKinsey.com.

This briefing note, based on our latest published insights, was prepared by Seth Stevenson, a senior editor in McKinsey’s New York office.




Sustainable and inclusive growth: Briefing note #35, March 2, 2023

A resilience agenda could help leaders weather short-term disruptions while maintaining focus on sustainable, inclusive growth. Our weekly digest of McKinsey insights explores that topic and more.

Organizations are seeking ways to build resilience in a world where they’re confronted with continuous, overlapping disruptions. Maintaining long-term perspective is crucial even amid short-term crises. In conjunction with the World Economic Forum, McKinsey presents a “resilience agenda” to help guide leaders who are attempting to foster sustainable, inclusive growth during a challenging moment. Elsewhere: an article offers guidelines for oil and gas companies looking to invest in the sustainable-power value chain. And McKinsey analysis reveals the value of employing neighborhood-level data in crafting American racial-equity initiatives.

Leaders should avoid being overwhelmed by immediate issues, even as disruptions mount. Choices about how to create a resilient world can translate into trillion-dollar swings in GDP growth—and incalculable differences in the quality of human life. McKinsey global managing partner Bob Sternfels and World Economic Forum president Børge Brende present a resilience agenda that offers a framework for building resilience across dimensions such as climate, healthcare, technology, and geopolitics. A holistic approach, a long-term mindset, and openness to public–private collaborations are all vital enablers of resilience.

Energy markets are changing rapidly, and the traditional business models of oil and gas players are under pressure. Senior partner Humayun Tai and coauthors say that oil and gas companies are strongly positioned—given their global scale, significant resources, and unique capabilities—to play key roles in the energy transition. Among the most promising areas for investment by these companies: offshore project development, hydrogen production and transportation, and electric-vehicle charging infrastructure.

Nationally aggregated data about racial inequity can sometimes miss crucial details that are specific to American cities or neighborhoods. McKinsey research has revealed important microlevel differences relating to issues such as education and food security. McKinsey Global Institute director Kweilin Ellingrud and North America social responsibility leader Ramesh Srinivasan suggest that a greater understanding of equity gaps between neighborhoods could help stakeholders prioritize in a more targeted manner.

Here are other recent notable findings from McKinsey research:

A recent edition of Author Talks features University of Southern California adjunct professors of entrepreneurship Garrett Brown and Colin Coggins speaking about their new book, The Unsold Mindset: Redefining What It Means to Sell (HarperCollins Publishers, February 2023). The authors express their views that manipulation and smarm are ineffective sales techniques and that authenticity and emotional intelligence can help salespeople close deals.

McKinsey is striving to create inclusive growth through collaborations with clients and local communities. By preparing students for the jobs of tomorrow, propelling wealth creation for working families, and supporting racial equity, McKinsey is helping build an economy that works for everyone. To learn more about McKinsey’s efforts to create an inclusive economy, visit McKinsey.com.

This briefing note, based on our latest published insights, was prepared by Seth Stevenson, a senior editor in McKinsey’s New York office.




Sustainable and inclusive growth: Briefing note #34, February 23, 2023

Corporate monetary pledges aimed at fighting racial injustice have become more difficult to track. Our weekly digest of McKinsey insights explores that topic and more.

In recent years, many large companies have made monetary pledges to fight racial injustice. This week, the McKinsey Institute for Black Economic Mobility analyzes those pledges. New research reveals, among other insights, that these commitments have become more broadly targeted and more difficult to track. Elsewhere, an article looks at how supply chain snarls can impede renewable-energy projects.

Companies’ monetary commitments in support of racial equity have become less specifically targeted since 2021. Companies increasingly direct monetary pledges toward broad initiatives that don’t always disclose how funds are spent. McKinsey partner Duwain Pinder and coauthors offer suggestions for companies looking to make future pledges. Among them: be transparent and specific about the timelines and targets of pledges, and don’t forget—while making those external pledges—to also make internal commitments to employees.

Supply chain tangles have created difficulties for developers of renewable energy. Labor shortages and the geographic concentration of vital raw materials are among the most pressing obstacles to the construction of new (and in-demand) wind and solar capacity. Senior partner Alberto Bettoli and coauthors say vertical integration could be one solution: renewables companies that can acquire or partner with materials suppliers might be better able to keep projects on track.

Here are other recent notable findings from McKinsey research:

A recent edition of Author Talks features Harvard Medical School psychiatry professor Robert Waldinger speaking about his new book, The Good Life: Lessons From the World’s Longest Scientific Study of Happiness (Simon & Schuster, January 2023). Waldinger, who oversees the Harvard Study of Adult Development, says the 85-year-old longitudinal study reveals that the strongest source of happiness is good relationships, a successful career does not always result in contentment, and no one is happy all the time.

McKinsey is striving to create inclusive growth through collaborations with clients and local communities. By preparing students for the jobs of tomorrow, propelling wealth creation for working families, and supporting racial equity, McKinsey is helping build an economy that works for everyone. Learn more about McKinsey’s efforts to create an inclusive economy, on McKinsey.com. 

This briefing note, based on our latest published insights, was prepared by Seth Stevenson, a senior editor in McKinsey’s New York office.




Sustainable and inclusive growth: Briefing note #33, February 16, 2023

Banks need better methods for handling data on sustainability. Our weekly digest of McKinsey insights explores that topic and more.

The banking industry faces increasing pressure to disclose data relating to environmental, social, and governance (ESG) issues. Achieving greater transparency will require banks to adapt their IT infrastructure. This week, a McKinsey piece lays out an ESG-data road map for banking’s IT leaders. Separately, an interview with the chief sustainability officer at the Monetary Authority of Singapore looks at approaches to financing the net-zero transition. And McKinsey research reveals that meat consumption trends in China could have environmental implications.

To keep pace with regulatory changes and consumer needs, banks need to integrate ESG-related data into their IT systems and processes. McKinsey partner Henning Soller and coauthors offer banking’s IT leaders best practices on the topic. Among them: give investors real-time visibility into the ESG-related aspects of their portfolios, ensure that ESG data handling is sensitive to both shifting market demands and location-specific regulatory requirements, and encourage cross-functional collaboration to avoid data silos.

Severe weather events resulting from climate change pose a grave threat to Southeast Asia. Gillian Tan, chief sustainability officer at the Monetary Authority of Singapore, spoke with McKinsey partner Bharath Sattanathan about the potential to use a blend of public and private finance to help combat climate change. Tan wonders whether financial institutions could be offered inducements—such as different treatment of loans for green initiatives—to take more action in the fight against carbon emissions.

Results of a McKinsey survey of Chinese consumers identify trends in meat consumption, including attitudes toward sustainability. Senior partners Sheng Hong and Roberto Uchoa de Paula and coauthors note that awareness of food sustainability issues is rising in China but has not yet resulted in increased enthusiasm for alternative meat. Almost 80 percent of survey respondents report that they dislike the taste of alternative meat products. About 20 percent dislike the price.

Here are other recent notable findings from McKinsey research:

A recent edition of Author Talks features University of Pennsylvania Carey Law School professor Tess Wilkinson-Ryan speaking about her new book, Fool Proof: How Fear of Playing the Sucker Shapes Our Selves and the Social Order—and What We Can Do about It (HarperCollins Publishers, February 2023). Wilkinson-Ryan maintains that decision making suffers when people are scared to look foolish but improves when people make themselves cognizant of that fear.

McKinsey is striving to create inclusive growth through collaborations with clients and local communities. By preparing students for the jobs of tomorrow, propelling wealth creation for working families, and supporting racial equity, McKinsey is helping build an economy that works for everyone. Learn more about McKinsey’s efforts to create an inclusive economy, on McKinsey.com.

This briefing note, based on our latest published insights, was prepared by Seth Stevenson, a senior editor in McKinsey’s New York office.




Sustainable and inclusive growth: Briefing note #32, February 9, 2023

Consumers say they care about sustainability—but what do their wallets say? Our weekly digest of McKinsey insights explores that topic and more.

In surveys, American consumers often signal that sustainability matters to them. But are they in fact more likely to buy a product if it’s sustainably produced? This week, McKinsey research investigates whether products that make claims related to environmental, social, and governance (ESG) sell better than products that don’t. Meanwhile, a separate article looks at ways to close the Black tech talent gap. And a piece examines decarbonization efforts in the cement and concrete industry.

Consumer products that made ESG-related claims on their packaging grew faster over a five-year period than products that made no claims, according to a study jointly conducted by McKinsey and NielsenIQ. Among other findings from the study (which analyzed sales data covering 600,000 individual product SKUs representing $400 billion in annual retail revenues): ESG-related claims boosted sales across varied product categories and brand sizes, and less-common claims tended to be associated with larger sales effects. Senior partner Steve Noble and coauthors say that consumer-packaged-goods companies could benefit from ramping up development of environmentally sustainable and ethically produced products.

Black people constitute 12 percent of the US workforce but only 8 percent of tech employees and 3 percent of C-suite tech executives. As a result, Black households could lose out on more than a cumulative $350 billion in tech job wages by 2030. Senior partner Mark McMillan and coauthors suggest several actions that could help close the Black tech talent gap. Among them: develop stronger partnerships between corporations and historically Black colleges and universities and upskill Black tech employees to ease advancement into leadership ranks.

Cement production is a crucial target for decarbonization as it generates 7 percent of global CO2 emissions. Senior partner Jukka Maksimainen and coauthors identify three emissions-reduction levers that could aid the effort: replace clinker (a lumpy substance—often used as a binder in cement products—that accounts for 90 percent of cement production emissions) with alternative materials such as fly ash or metal slag; use electric kilns to cut energy-related emissions; and store and reuse remaining CO2.

Here are other recent notable findings from our research:

A recent edition of Author Talks features father–daughter duo Alex Jadad and Tamen Jadad-Garcia speaking about their new book, Healthy No Matter What: How Humans Are Hardwired to Adapt (Penguin Random House, January 2023). The authors elucidate, among other themes, their concept of “enoughness”: health strategies can err both by doing too much (overtesting, overdiagnosing) and too little (failing to control risk factors such as high blood pressure or high blood sugar).

McKinsey is striving to create inclusive growth through collaborations with clients and local communities. By preparing students for the jobs of tomorrow, propelling wealth creation for working families, and supporting racial equity, McKinsey is helping to build an economy that works for everyone. Learn more about McKinsey’s efforts to create an inclusive economy, on McKinsey.com.

This briefing note, based on our latest published insights, was prepared by Seth Stevenson, a senior editor in McKinsey’s New York office.




Sustainable and inclusive growth: Briefing note #31, February 2, 2023

Executives are navigating a serpentine path to net zero. Our weekly digest of McKinsey insights explores that topic and more.

Getting to net zero will involve trade-offs between long-term goals and short-term realities. It could be a serpentine path, full of setbacks and adjustments. This week, a McKinsey podcast looks at possible next moves for executives trying to balance decarbonization efforts against pragmatic concerns. Meanwhile, a separate article examines the economics of electrifying America’s commercial-vehicle fleets.

Many executives might be wondering how to advance toward a decarbonized future while enduring near-term economic shocks. In an episode of The McKinsey Podcast, Anna Moore and senior partner Humayun Tai discuss this duality and its ramifications. One way to make pragmatic strides toward decarbonization is to search for win–win scenarios in which decarbonization initiatives lead to market share gains.

Operators of American commercial-vehicle fleets have been hesitant to embrace electrification—in part because they have memories of an earlier transition (to engines powered by compressed natural gas) that failed to successfully materialize. But Moritz Rittstieg, Saleem Zafar, and coauthors say shifting economics are making this an appealing moment to make the switch to electric fleets. Facts to consider: electricity is now three to five times cheaper than diesel fuel, and battery electric vehicles might outperform internal-combustion-engine vehicles in terms of total cost of ownership as soon as 2025.

Investments related to environmental, social, and governance (ESG) concerns have attracted increasing levels of interest—and scrutiny—in recent years, and companies have endeavored to solidify their ESG-related policies.

Here are other recent notable findings from our research:

A recent edition of Author Talks features senior partners Venkat Atluri and Miklós Dietz speaking about their new book, The Ecosystem Economy: How to Lead in the New Age of Sectors without Borders (John Wiley & Sons, October 2022). The authors maintain that cross-sectoral ecosystems—bundling a variety of offerings from different industries—are poised to create increasing levels of value while making life easier for consumers.

McKinsey is striving to create inclusive growth through collaborations with clients and local communities. By preparing students for the jobs of tomorrow, propelling wealth creation for working families, and supporting racial equity, McKinsey is helping to build an economy that works for everyone. Learn more about McKinsey’s efforts to create an inclusive economy, on McKinsey.com.

This briefing note, based on our latest published insights, was prepared by Seth Stevenson, a senior editor in McKinsey’s New York office.




Sustainable and inclusive growth: Briefing note #30, January 26, 2023

Inadequate broadband access for Black households could factor into lower Black representation rates in the American tech workforce. Our weekly digest of McKinsey insights explores that topic and more.

In the United States, Black households lag behind White households in digital skills, ownership of desktop and laptop computers, and access to high-speed internet. It’s a gap that can be interpreted as both a cause and an effect of inadequate Black representation in the American tech workforce. This week, McKinsey analysis looks at ways to narrow that digital divide. Meanwhile, a separate piece assesses the shortfall of women working at European tech companies—and offers suggestions to redress the imbalance.

Only 69 percent of Black Americans have desktop or laptop computers, compared with 80 percent of White Americans (exhibit). Disparities like this can skew hiring for tech jobs—which often pay better than other occupations—thereby exacerbating income and wealth gaps. Kunal Modi, Todd Wintner, and coauthors posit five steps that could be taken to help promote digital equity and inclusion. Among them: conduct comprehensive surveys of underserved locations to ensure that Black communities receive their fair share of tech-enabling government funding, and partner with local stakeholders to ensure that eligible households then take advantage of these subsidies.

2020The digital divide disproportionately affects Black Americans across adoption, computer ownership, and digital skills.

Women occupy only 22 percent of all tech roles across European companies. The percentage of European women in STEM drops off precipitously during the transition from secondary school to university and again during the transition into the workforce. Senior partner Sven Blumberg and coauthors suggest four interventions that could improve women’s representation in European tech. One potential approach is to retrain and redeploy women to place them in tech fields where hiring is growing fastest.

Here are other recent notable findings from our research:

A recent edition of Author Talks features Ha-Joon Chang, professor of economics at SOAS University of London, speaking about his new book, Edible Economics: A Hungry Economist Explains the World (PublicAffairs, January 2023). Chang explains why he uses stories about food to elucidate economic arguments, while also expressing his belief that countries can benefit from strong, government-led industrial policies.

McKinsey is striving to create inclusive growth through collaborations with clients and local communities. By preparing students for the jobs of tomorrow, propelling wealth creation for working families, and supporting racial equity, McKinsey is helping to build an economy that works for everyone. Learn more about McKinsey’s efforts to create an inclusive economy, on McKinsey.com.

This briefing note, based on our latest published insights, was prepared by Seth Stevenson, a senior editor in McKinsey’s New York office.




Sustainable and inclusive growth: Briefing note #29, January 19, 2023

As Davos 2023 continues, sustainable and inclusive growth lies at the center of many discussions. Our weekly digest of McKinsey insights explores that topic and more.

The World Economic Forum (WEF) gathered leaders from around the world this week. As a strategic partner to the WEF, McKinsey is engaging with Davos 2023 participants—including decision makers from government, business, and civil society—to identify opportunities for creating sustainable, inclusive growth across the globe. Our WEF overview page is the place to find McKinsey’s latest Davos-related insights and interviews. Elsewhere: McKinsey analysis points to six areas of action for business leaders and policy makers who hope to enable an orderly transition to renewable energy. And a look at the future of batteries examines strategies for making the industry more sustainable and resilient as battery demand rises.

Sustainability and inclusivity are central discussion topics at Davos 2023. Senior partner and chief marketing officer Tracy Francis and senior partner Daniel Pacthod explain why the WEF matters more than ever as leaders around the world reimagine globalization for a new, uncertain era. In partnership with the WEF’s Centre for the New Economy and Society, senior partners Kweilin Ellingrud and Lareina Yee and coauthors examine best practices for improving diversity, equity, and inclusion (DEI) and suggest ways to make DEI efforts more quantifiable and scalable. For more from Switzerland, check out what young global leaders list as their top Davos agenda items, and—if you need a primer—read the latest McKinsey Explainer, “What is Davos?”

A key element in reducing greenhouse-gas (GHG) emissions in the United States will be decarbonizing the electric sector, which currently accounts for 25 percent of US GHG emissions. Senior partners Hamid Samandari and Humayun Tai and coauthors outline six steps for reducing emissions while maintaining a resilient energy supply. Among them: securing and developing land for renewable energy. To meet some climate goals, a high proportion of the land suitable for generating solar or onshore wind power will need to be used efficiently.

As global demand for lithium-ion batteries grows, the industry will face new opportunities and challenges. In collaboration with the Global Battery Alliance, senior partners Mikael Hanicke and Martin Linder and coauthors suggest ways to scale up effectively and responsibly. Three important components for healthy growth: diversified supply chains, decarbonized operations, and a circular value chain, in which materials are reused, repaired, or recycled.

Here are other recent notable findings from our research:

A recent edition of Author Talks features Myra Strober, founding director of Stanford’s Clayman Institute for Gender Research, speaking about her new book, Money and Love: An Intelligent Roadmap for Life’s Biggest Decisions (HarperCollins Publishers, January 2023), written with Abby Davisson. Strober explains her “5Cs” framework for making decisions about money and love: clarify, communicate, consider a broad range of choices, check in with family and friends, and anticipate likely consequences.

McKinsey is striving to create inclusive growth through collaborations with clients and local communities. By preparing students for the jobs of tomorrow, propelling wealth creation for working families, and supporting racial equity, McKinsey is helping to build an economy that works for everyone. Learn more about McKinsey’s efforts to create an inclusive economy, on McKinsey.com.

This briefing note, based on our latest published insights, was prepared by Seth Stevenson, a senior editor in McKinsey’s New York office.




Sustainable and inclusive growth: Briefing note #28, January 12, 2023

Davos 2023 begins next week, with global sustainability and inclusivity expected to be major focal points. Our weekly digest of McKinsey insights explores that topic and more.

The annual meeting of the World Economic Forum (WEF) kicks off next week in Davos, Switzerland. As a strategic partner to the WEF, McKinsey will engage with Davos 2023 participants—including decision makers from government, business, and civil society—to identify opportunities for creating sustainable, inclusive growth across the globe. Our WEF overview page will be the place to find McKinsey’s Davos-related insights and interviews. In the meantime: a McKinsey article offers four strategies for fashion brands looking to become more inclusive by connecting with Black consumers (whose spending on apparel and footwear is expected to reach $70 billion by 2030, with much new business up for grabs in the interim). And a piece examines the rise of virtual healthcare, while suggesting ways to include populations that are getting left behind in the rush to telemedicine.

Davos 2023 will run from January 16–20. Sustainability and inclusivity are poised to be central discussion topics. Chief marketing officer and senior partner Tracy Francis and senior partner Daniel Pacthod have hosted a sneak preview video covering what to expect. And next week, Pacthod will join senior partner Kate Smaje to host an on-site event—that welcomes virtual attendees—providing firsthand accounts of what they’re seeing and hearing on the ground in Switzerland. To prepare for the WEF, check in on what young global leaders view as top Davos agenda items. (If you’re in need of a primer, read McKinsey’s explainer: “What is Davos?”)

When shopping for apparel, Black consumers are 11 percentage points more likely than non-Black consumers to prefer e-commerce options. Senior partners Tiffany Burns and Shelley Stewart III and coauthors analyze data on Black consumers’ buying habits while suggesting four effective strategies for reaching these shoppers: amplify products made by Black creators (and inspired by the needs of Black consumers); employ diverse marketing campaigns (that include user-generated content from Black consumers); make products affordable (and offer flexible payment models); and build digital and physical shopping realms in which Black consumers feel welcome.

Telemedicine represented 1 percent of patient visits prior to the COVID-19 pandemic. It now represents 14–17 percent of visits. But there are emerging gaps in access to virtual healthcare: for instance, though rural areas are often physically farther from in-person health services, they still trail urban areas when it comes to virtual-healthcare adoption. Alex Harris and coauthors suggest that telemedicine’s potential could be bolstered by improving uptake rates for lower-income patients, older patients, and patients with less access to technology.

Here are other recent notable findings from our research:

A recent edition of Author Talks features marketing professor Peter Fader and retail scientist Michael Ross speaking about their new book, The Customer-Base Audit: The First Step on the Journey to Customer Centricity (Warton School Press, November 2022). Fader and Ross maintain that long-term business growth begins with a deep understanding of how customers think and behave—and with an acknowledgment that some customers provide far more value than others.

McKinsey is striving to create inclusive growth through collaborations with clients and local communities. By preparing students for the jobs of tomorrow, propelling wealth creation for working families, and supporting racial equity, McKinsey is helping to build an economy that works for everyone. Learn more about McKinsey’s efforts to create an inclusive economy, on McKinsey.com.

This briefing note, based on our latest published insights, was prepared by Seth Stevenson, a senior editor in McKinsey’s New York office.




Sustainable and inclusive growth: Briefing note #27, January 5, 2023

A majority of luxury-vehicle owners are ready for the shift to electric vehicles. Our weekly digest of McKinsey insights explores that topic and more.

Luxury-vehicle owners around the world are open to buying electric vehicles (EVs). They also profess very little brand loyalty. This week, McKinsey research examines the global luxury-vehicle sector and the opportunities that could emerge as it transitions to an EV-heavy future. A separate article looks at the entrance of Asian EV brands into the European market—and what European incumbents might learn from it. Meanwhile, a look at the potential benefits of using drone-powered package delivery services finds that drone deliveries could eventually be cheaper and greener than other last-mile delivery options.

A global McKinsey survey of owners of luxury vehicles (retailing for $200,000 or more) finds that 62 percent of respondents who own luxury vehicles with internal-combustion engines are open to switching to EVs or plug-in hybrids. And 95 percent of luxury-vehicle owners say they’d consider switching brands for their next vehicle purchase. Senior partner Jan-Christoph Köstring and coauthors suggest that many luxury-EV customers could soon be up for grabs and that manufacturers might boost brand loyalty by fostering exclusive owners’ communities replete with special events and services.

Asian EV makers are gaining a foothold in the European market. Their strategies have varied widely, ranging from direct-to-consumer approaches to partnerships with local importers. Among the customer frustrations these new players are attempting to address with better solutions: puzzlement at opaque vehicle pricing and disappointment over long delivery wait times. Niels Dau and coauthors suggest that incumbent European brands might seize this unsettled moment amid the ongoing EV transition to make overdue changes—or risk getting left behind by disruptive Asian competitors.

Thousands of commercial drone deliveries already occur every day around the world. Drones could potentially offer lower carbon emissions than other last-mile delivery options such as cars and vans (even electric ones). But, say Robin Riedel and coauthors, labor costs could be a limiting factor: for drones to succeed, regulations and technology will need to permit a single operator to control many drones simultaneously.

Here are other recent notable findings from our research:

A recent edition of Author Talks features Jacob Harold, cofounder of Candid, speaking about his new book, The Toolbox: Strategies for Crafting Social Impact (John Wiley & Sons, December 2022). Among the powerful tools Harold recommends for enacting social change and building a better world: game theory, mathematical modeling, design thinking, and storytelling.

McKinsey is striving to create inclusive growth through collaborations with clients and local communities. By preparing students for the jobs of tomorrow, propelling wealth creation for working families, and supporting racial equity, McKinsey is helping to build an economy that works for everyone. Learn more about McKinsey’s efforts to create an inclusive economy, on McKinsey.com.

This briefing note, based on our latest published insights, was prepared by Seth Stevenson, a senior editor in McKinsey’s New York office.

For McKinsey’s 2022 perspectives on sustainable and inclusive growth, visit our archive of briefing notes that were published throughout the year.

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