BOSTON, May 27, 2020 /PRNewswire/ -- As governments,
companies, and investors mobilize massive resources to combat
COVID-19, leaders have a once-in-a-lifetime opportunity to take
bold action against global climate change. By focusing on the
climate agenda, even in the midst of this pandemic, leaders can
direct investments toward sustainability, rebuild businesses for
environmental resilience, and contribute to solving two crises at
once, according to a new publication by Boston Consulting
Group (BCG). The report, "Climate Should Not Be the Virus's Next
Victim," is being released today.
In the wake of the pandemic, global carbon emissions are
expected to decline by 5% to 10% this year—the largest drop since
World War II. But this decline in greenhouse gas emissions won't
halt climate change if the global economy reverts to the status
quo.
"The global community is facing a clear choice," said Michel
Frédeau, a BCG managing director and senior partner and a coauthor
of the report. "We can go back to how things were, or we can seize
this moment to build a greener, more resilient economy."
Governments, Companies and Investors Should Invest in Climate
Resilience
COVID-19 offers a dramatic illustration of what happens when
leaders ignore early warning signs, but it also highlights what we
can achieve, individually and through cooperation, when truly
pressured to act for the greater good.
"Governments, companies, and investors now have an important
role to play in orchestrating a recovery that addresses the current
crisis, while building a strong foundation to tackle climate
change," said Veronica Chau, a BCG
partner and director and a coauthor of the report.
The report outlines key actions for governments, companies, and
investors:
- Governments should link stimulus funding to a green recovery,
structure relief packages to prioritize sustainable business models
and climate disclosure standards, and manage a "just transition" of
the workforce toward a net-zero economy.
- Companies can systematically reduce carbon emissions while
reducing costs, streamline supply chains, and decarbonize their
business and product portfolios.
- Investors should continue to emphasize the importance of
climate in investment allocation and stewardship, integrate climate
risk into credit models, and invest in a green recovery by
leveraging green bonds and other climate-friendly initiatives.
An Opportunity to Fuel Economic Growth and Rebuild for the
Future
Before COVID-19, climate change was on a positive trajectory:
CO2 emissions had leveled off in 2019, companies and
investors were increasingly placing climate at the top of their
agenda, and governments were revisiting their climate plans ahead
of COP26.
"The world was not prepared for this pandemic, but the climate
crisis is entirely predictable," said Patrick Herhold, a BCG managing director and
partner and a coauthor of the report. "The question is: Will we
look back in ten years and see that we used this moment to launch a
green economic recovery—or that we missed the chance? If the latter
outcome sadly proves to be the reality, we will be forced to reckon
with an even more devastating and permanent global crisis."
A copy of the publication can be downloaded here.
To arrange an interview, please contact Eric Gregoire at +1 617 850 3783 or
gregoire.eric@bcg.com.
About Boston Consulting Group
Boston Consulting Group
partners with leaders in business and society to tackle their most
important challenges and capture their greatest opportunities. BCG
was the pioneer in business strategy when it was founded in 1963.
Today, we help clients with total transformation—inspiring complex
change, enabling organizations to grow, building competitive
advantage, and driving bottom-line impact.
To succeed, organizations must blend digital and human
capabilities. Our diverse, global teams bring deep industry and
functional expertise and a range of perspectives to spark change.
BCG delivers solutions through leading-edge management consulting
along with technology and design, corporate and digital
ventures—and business purpose. We work in a uniquely collaborative
model across the firm and throughout all levels of the client
organization, generating results that allow our clients to
thrive.
BCG's Center for Climate Action
We partner with
clients across the public, private, and social sectors to align
their strategy, operations, and stakeholder engagement with a
low-carbon world. Our work is supported by BCG's range of
consulting experience across all industries and capabilities, as
well as by our expanding reach of brands.
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SOURCE Boston Consulting Group (BCG)