The Next “Digital”: Unlocking $50 Billion Green Tech Opportunity
For governments, corporations, and citizens of the world, COP26 - UN Climate Change Conference, held in Glasgow, marks an important milestone as it has been the culmination of a seminal ongoing global effort aimed at trying to identify and measure the impact of human activity on the environment. As of now, it has mobilized the private sector globally, with more than 5,200 businesses and 450 financial institutions, representing over 40 percent of financial assets, committing to science-based net-zero targets.
As a result of such commitments and continuous awareness about net-zero, technology firms are poised to achieve breakthrough growth, driven by large-scale Green Technology adoption, with more than 60% of CXOs across industries considering sustainability when launching a digital project. Green-Tech growth is driven by the growing adoption of sustainability-driven business model transformation across sectors, building up a vast opportunity of US$45-55 Billion every year, and expected to grow at 25-30% annually over the next five years.
In order to evaluate this opportunity, BCG has conducted an in-depth survey, 'BCG Global Digital Transformation Survey 2021', involving 850+ CxOs from varied industries, followed by in-depth interviews with leading climate-focused VC firms, technology companies and consulting firms investing in environmental, social, and governance practices, and secondary market research. The report highlights the findings of the survey and the way forward for technology companies to build capabilities in the Green-Tech industry.