Are you prepared for the fastest economic transition in history?
When it comes to the matter of climate change, it’s easy to primarily think of it in terms of a planetary transition. However, beyond that, and beyond the moral obligation we as individuals or organisations have, businesses should also consider it a fundamental transition of our economical system and the market upon which they operate.
Sustainability work has often been associated with increased risk and cost, rather than opportunity. Is that really the case?
The net zero economy in numbers
By 2030, the net zero transition is predicted to contribute an additional US$26 trillion to the global economy compared to business as usual (Falk et al., 2020).
In comparison, the size of the world’s largest economy, the United States, was worth US$21.5 trillion in 2019 (Silver, 2020).
The potential value of climate-related business opportunities is almost seven times higher than the cost of realising these opportunities (CDP, 2018)
Early movers reap the benefits
The net zero transition represents a growing market, accelerated by demands from consumers, new technology, and governmental regulations. By seizing opportunities early, businesses can bring new products and services into the market, be well prepared for regulatory changes, improve their resource efficiency, and engage investors with confidence. If you’re not an early mover, markets may instead close off to you as competitors start to undercut your business.
The greatest risk is doing nothing at all
Beyond the terrible business case of not seizing available opportunities as a fundamental shift in the market occurs, and falling behind, there are also more direct risks.
Physical risks, such as hazardous weather events, may disrupt your supply chains. Legal action is being taken against entities considered to exacerbate climate change, with over 1,500 cases ongoing at the moment (Climate Change Litigation Databases, 2021). Then there are transitional risks, such as changing regulation and policy, new technology undercutting your business, stranded assets and uninsurability, changing consumer expectations, and reputational risks if you don’t act – the list grows long.
If we can’t measure it, we can’t manage it.
Where to start?
We know it can be difficult to get going, even with the best intentions. The good news: you don’t have to do it alone. Another Tomorrow offers two different starting points to get your organisation moving in the right direction.
Opportunity Outlook
The first is a half-day sprint, focusing on the transition facing your particular sector. A cross-disciplinary co-creation sprint to help you identify risks and opportunities: Where are you most vulnerable? What new market opportunities could you seize as a part of this transition?
Diagnostic
The second is an in-step to our more holistic climate transformation programme; a diagnostic performed on your organisation over the course of a few weeks. Using the MetricModel we’ve developed with support from renowned scientists within climate economics and environmental politics, we diagnose the state of your organisation’s net zero transition. We assess your transition, transition capacity, and initiatives, giving clear actionable directions for next steps metrics to monitor your progress going forward.
Head of Business Design, Karin Wåhlberg (Photo by Jacob Nordström)
