How to Protect the Planet
Environmental degradation is everyone’s problem. Businesses have a responsibility to take action—and will benefit from doing so.
#HowtobyBCG
Climate change has topped the global business agenda for years, but the biodiversity crisis, specifically, is only now coming into full view. Leaders must adjust their lens to understand the threat to lives, livelihoods, and businesses—and prepare for the opportunities that recovery will bring.
A Planet in Crisis—and the Crisis Response
SIGNS OF RECOVERY
Ecosystems
50%
The growth in sustainably sourced, produced, and traded US consumer goods from 2013 to 2018
SIGNS OF RECOVERY
Air
65%
The percentage of individuals who believe it is important to prioritize climate change in postpandemic economic recovery programs
SIGNS OF RECOVERY
Water
3.1 pp
The EBITDA advantage held by CPG companies with strong water management policies
SIGNS OF RECOVERY
Forests
20%
The value that can be preserved by following through on current global pledges for forest protection
The Earth is now a high-risk zone in terms of biosphere health, and we are experiencing the planet’s sixth mass extinction of species— 66 million years after the extinction of the dinosaurs.
UNDERSTAND THE BUSINESS CHALLENGE
Businesses are feeling the pressures of climate change and environmental destruction. Directly—as flooding, drought, and pollution compromise production, shipping, irrigation, and more. And indirectly—through the expectations of investors and consumers, who demand action. BCG research suggests 87% of people expect companies to do more to protect the environment.
Industries Can and Must Respond
deep dive
The food industry has an outsize impact on climate change and biodiversity in various ways. The production of animal proteins, for instance, contributes to substantial greenhouse gas emissions and water consumption. Alternative proteins offer a solution.
Consumers around the globe are embracing alternatives to animal proteins thanks to compelling environmental and health benefits. The upshot: proteins based on plants, microorganisms, and animal cells could soar from 2% of protein consumption in 2020 to as much as 22% by 2035.
Food Industry
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SEE BCG’S CLIMATE ACTION PLEDGE
Download the six steps
Scrutinize your supply chain
1
Think globally, act locally
2
Take a
long-term view
3
Adopt sustainable business model innovation
4
Promote sustainable technologies
5
Pursue partnerships
6
Pursue partnerships
Promote sustainable technologies
Adopt sustainable business model innovation
Take a
long-term view
Think globally, act locally
Scrutinize your supply chain
1
CHANGE THE GAME IN THE FIGHT AGAINST CLIMATE CHANGE
Scrutinize your supply chain
Thoroughly examine your supply chain; end-to-end emissions far outweigh the direct emissions from operations. For many supply chains, it’s possible to reuse materials on a wider scale and to replace traditional, emission-heavy power sources with renewables.
2
BALANCE LOCAL AND GLOBAL SCENARIOS
Think globally, act locally
Map dependencies to identify local issues that can have a broadly disruptive impact; protect local resources and far-reaching supply chains. Calculate the probability and potential damage of risks. Then, focus mitigation and contingency plans on areas critical to your supply chain.
3
FOLLOW A BLUEPRINT FOR CORPORATE ACTION
Take a long-term view
Remediate current problems and then look to the future. Commit to being a net-zero business, and invest in solutions that go beyond your value chain to contribute to a net-zero economy. Generate short-term impact while working toward the long-term resilience of ecological systems.
4
FIND COMPETITIVE ADVANTAGE IN SUSTAINABILITY
Adopt sustainable business model innovation
Refresh your business model to optimize business, environmental, and societal value. To get the biggest return on your effort, reimagine the business entirely by addressing the root causes of environmental and societal needs.
5
PUSH GREEN BUSINESS, ACROSS INDUSTRIES
Promote sustainable technologies
Persuade your partners and suppliers to adopt economically viable green technologies early on. Put your money where your mouth is: pay a premium for components, feedstock, and services produced using low-emission standards
and processes.
6
DON’T FORGET THE VALUE OF GLOBAL NETWORKS
Pursue partnerships
Create bankable projects through blended financing structures that pool resources from private stakeholders, public entities, and NGOs. Subject matter expertise is critical—and so is working cooperatively. Shoot for the win-win potential of such partnerships.
The BCG Center for Climate & Sustainability
LEARN MORE ABOUT WHAT WE DO
Our Commitment to Sustainability
SEE HOW WE ARE MAKING A DIFFERENCE
Redirecting businesses and the economy toward a net-zero and nature-positive future is the challenge of our lifetime. Thankfully, it’s a challenge we can meet.
Explore more topics in the How to by BCG series
How to Shape a Better Future
How to Shape a Better Future
POWER
Increase reliance on renewables
Improve grid flexibility and reliability
•
•
RELATED CONTENT
RELATED CONTENT
Improve process and energy efficiency
Use alternative fuels and feedstock
•
•
CHEMICALS
RELATED CONTENT
Develop electric vehicles
Expand charging infrastructure
•
•
Transport
RELATED CONTENT
Use sustainable aviation fuels
Deploy next-gen propulsion technologies
•
•
Aviation
RELATED CONTENT
Shift diets toward
plant-based and
lab-grown meats
Adopt regenerative farming practices
•
•
Agriculture
This mission starts with mitigating risks—but it doesn’t end there. Businesses must act fast to tap, create, and advance climate-friendly opportunities.
Business Must Be Part of the Solution
Scrutinize your supply chain
Think globally, act locally
Take a
long-term view
Adopt sustainable business model innovation
Promote sustainable technologies
Pursue partnerships
THREATS
Ecosystems
$43 trillion
The value of global GDP that depends on functioning natural ecosystems
THREATS
Air
47 gigatons
The equivalent in CO₂ emissions added to the atmosphere in 2020, despite the pandemic-related decline in greenhouse gas production
THREATS
Water
$38.5 billion
The value of losses attributable to water scarcity or pollution reported by businesses in 2018
THREATS
Forests
~1/3
The expected loss of global forest value by 2025, largely because of land use changes and rising temperatures
#HowtobyBCG
#HowtobyBCG
How to Change Course on Climate
How to Cultivate a Corporate Strategy to Serve All Stakeholders
How to Change Course on Climate
How to Cultivate a Corporate Strategy to Serve All Stakeholders
How to Harness the Power of Purpose
How to Harness the Power of Purpose
The Biodiversity Crisis Is a Business Crisis
Climate Should Not Be the Virus’s Next Victim
Thinking Globally About Local Water Crises
The Staggering Value of Forests—and How to Save Them
POWER
CHEMICALS
Transport
Aviation
Agriculture
1
CHANGE THE GAME IN THE FIGHT AGAINST CLIMATE CHANGE
Scrutinize your supply chain
Thoroughly examine your supply chain; end-to-end emissions far outweigh the direct emissions from operations. For many supply chains, it’s possible to reuse materials on a wider scale and to replace traditional, emission-heavy power sources with renewables.
BCG Executive Perspectives
REACH NET ZERO
BCG Executive Perspectives
REACH NET ZERO
