Experts emphasise that ignoring the challenges of climate change will jeopardise future company performance. At Atmoz we don’t see these challenges as risks, we see them as opportunities.
According to McKinsey, achieving net-zero by 2050 may prove to be the largest reallocation of capital in history. By implementing a sustainable business model, companies can make sure their operations stay relevant and thriving in a new business climate.
Investors look for sustainable businesses
Today about 65% of annual capital spendings go into high-emission assets. But in a scenario where the world reaches net-zero in 2050, the pattern would reverse. McKinsey calls it the Great Reallocation. To reach the goal of net-zero it’s time for businesses to make bolder moves and investors are eager to help out along the way. In fact, analysis suggest that investors are willing to pay around 10% premium to acquire a company with a positive sustainability record. (McKinsey, 2020). Introducing a clear climate strategy lowers the risk for the company as well as the investors in the long run.
Stay ahead of legislation and minimize risk
From 2024 and onwards, thousands of companies within the EU will be subject to stricter requirements for sustainability reporting through the new directive called CSRD (Corporate Sustainability Reporting Directive). The new regulation will directly or indirectly affect all companies within the EU, since the directly affected companies will place higher demands on all their suppliers. Therefore, now is the perfect time for everyone to start preparing to stay ahead.
Meet customer demands
Increasing awareness of global environmental issues is changing consumer habits all over the world. 8 out of 10 regards sustainability as important, and many are willing to pay more for a brand that is environmentally responsible (IBM, 2020). Knowing your emissions and communicating them in a transparent way has never been more important.
Develop new business areas
As the demand for sustainable products increases, many companies experience that it leads to innovative solutions. 74% of companies experience that their climate work has a fairly or very positive effect when it comes to developing new products and business areas (Hagainitiativet, 2021). Only your imagination set the limit to potential innovations!
Strengthen your brand
Active climate work has the most positive impact when it comes to brand and customer loyalty. 100% of companies within trade said their efforts had a fairly or very good effect on their target groups (Hagainitiativet, 2021). Adding emission and footprint aspects into your business model sets you apart from your competitors.
There was a time when climate change was about doing the right thing. Now it’s simply good business. Decarbonazation will reshape the entire world, and with Atmoz it’s never been easier.