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Will COVID-19 Jeopardize a Climate in Crisis—or Jump-Start a Green Recovery?

Governments, Companies, and Investors Can Fight the Virus in Ways That Support a Carbon-Neutral Future and Usher in a New Economy, Says Boston Consulting Group

BOSTON—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.

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.

ABOUT BOSTON CONSULTING GROUP

Die Boston Consulting Group (BCG) unterstützt führende Akteure aus Wirtschaft und Gesellschaft in partnerschaftlicher Zusammenarbeit dabei, Herausforderungen zu meistern und Chancen zu nutzen. Seit der Gründung 1963 leistet BCG Pionierarbeit im Bereich Unternehmensstrategie. Die Boston Consulting Group hilft Kunden, umfassende Transformationen zu gestalten: Die Beratung ermöglicht komplexe Veränderungen, eröffnet Wachstumschancen, schafft Wettbewerbsvorteile, verbessert die Kunden- und Mitarbeiterzufriedenheit und bewirkt so dauerhafte Verbesserungen des Geschäftsergebnisses.

Nachhaltiger Erfolg erfordert die Kombination aus digitalen und menschlichen Fähigkeiten. Die vielfältigen, internationalen Teams von BCG bringen tiefgreifende Expertise in unterschiedlichen Branchen und Funktionen mit, um Veränderungen anzustoßen. BCG verzahnt führende Management-Beratung mit Expertise in Technologie, Digital und Analytics, neuen Geschäftsmodellen und der übergeordneten Sinnfrage für Unternehmen. Sowohl intern als auch bei Kunden setzt BCG auf Gemeinschaft und schafft dadurch Ergebnisse, die Kunden nach vorne bringen. Das Unternehmen mit Büros in mehr als 90 Städten in über 50 Ländern erwirtschaftete weltweit mit 18.500 Mitarbeitern im Jahr 2018 einen Umsatz von 7,5 Milliarden US-Dollar. Weitere Informationen: www.bcg.de

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