Businesses around the globe start committing to cut greenhouse gases, by introducing net-zero goals and strategies to decrease carbon emissions.
Nowadays, consumers are getting more aware of climate change and its impact. They demand that businesses offer goods and services which are more climate-friendly than before[1].
A survey by Amnesty International showed that for Generation Z (people aged 18-25) climate change is the most important issue facing the world. In addition, they see global warming as the most important environmental issue[2]. The latest global millennial survey done by Deloitte showed that for millennials the main world challenge after the pandemic is climate change. These studies show that future consumers are much more aware of climate-related topics[3]. Larry Fink CEO of BlackRock wrote in his 2021 letter, that “There is no company whose business model won’t be profoundly affected by the transition to a net-zero economy” and that “Companies that are not quickly preparing themselves will see their businesses and valuations suffer, as these same stakeholders lose confidence that those companies can adapt their business models to the dramatic changes that are coming.”[4]
Businesses’ net-zero commitments have more than doubled in recent years. Over 700 of the largest businesses in the world are already committed to 0.2Gt CO2 carbon credits by 2030. Businesses in the oil and gas sector such as BP and Shell already pledged to net-zero. Investments directly in nature have also become more popular among companies. Amazon is restoring 1.6 million hectares of forest in the U.S. Walmart has announced plans to rehabilitate 50 million acres of land and restore approximately 1 million square miles of ocean.
Following the facts of the post-pandemic recovery, a green recovery is on the agenda of businesses around the globe. Businesses already got the awareness of future changes by committing to net-zero goals and the implementation of carbon decreasing strategies.[1]
Article Sources
[1] World Economic Forum in Collaboration with McKinsey & Company, Nature and Net Zero, May 2021
[2] Amnesty International, Climate change ranks highest as vital issue of our time – Generation Z survey, 10. December 2019, https://www.amnesty.org/en/latest/news/2019/12/climate-change-ranks-highest-as-vital-issue-of-our-time/
[3] Deloitte, The Deloitte Global Millennial Survey 2020 – Resilient generations hold the key to creating a “better normal”, 2020
[4] Larry Fink, 2021 Letter to CEOs, https://www.blackrock.com/corporate/investor-relations/larry-fink-ceo-letter