Only One in Five Firms “Ready to Act” on Net Zero Transition

A report by Boston Consulting Group (BCG) says while two thirds of firms see climate and sustainability (C&S) as a “top priority”, only one in five are “ready to act”. This status refers to firms which have incorporated C&S priorities into their innovation engines, built the capabilities they need, and are prepared to develop and deliver the required product, process, and business model innovations. The report says that the “innovation readiness gap” between the commitments of large firms – including Apple, Amazon, Tesla and Microsoft – and their capability on net zero and C&S is an “existential problem”. BCG says that industries responsible for the highest emissions – durable goods, automotive, utilities, and oil and gas – are the ones that prioritise C&S the most, with high-emitting companies being 20% more likely than low emitters to target “deep tech solutions” needed to substantially decarbonise. Justin Manly, BCG’s Growth and Innovation Segment Global Leader, said: “While many companies talk about sustainability and make net-zero emissions pledges, far too few of them have truly done the work of integrating C&S priorities into their innovation engines and producing tangible results.”  

The practical information hub for asset owners looking to invest successfully and sustainably for the long term. As best practice evolves, we will share the news, insights and data to guide asset owners on their individual journey to ESG integration.

Copyright © 2023 ESG Investor Ltd. Company No. 12893343. ESG Investor Ltd, Fox Court, 14 Grays Inn Road, London, WC1X 8HN

To Top