Companies learn about climate protection measures and subsidies during a visit to the myclimate project. Image: myclimate
This study is one of a number of recently published articles that attest to benefits for climate-committed companies, including the Nature study. The KfW Research and Deloitte publication “The economic benefits of climate action” concludes that companies benefit significantly from climate protection measures, and underlines the economic urgency of decarbonisation.
There are many reasons for this. The global market for “green tech” has strong growth potential. And, given the right political and economic policy, market volumes are likely to increase significantly by the middle of the century.
Companies that focus on sustainable business models and low-emission production at an early stage also gain strategic advantages. This can be due, for example, to reduced dependency on fossil raw materials and fluctuating energy or carbon pricing, cheaper financing options and sustainable market positioning.
For Germany in particular, the study points out that the clean-tech sector is already a strong exporter: around 13 percent of global green tech exports come from here. In addition, demand for green technologies and capital inflows to them have increased dynamically by an average of 7.3 and 9.6 per cent per year, respectively. Forecasts predict a threefold or even fourfold increase by 2050.
Although the study attests to the necessity of short-term challenges such as investment costs, adaptation of business models and technical changes, companies clearly benefit in the long term.
The study also addresses the necessary responsibilities for this: in addition to the urgent decisions to be taken within businesses, it is important to have the right economic policy framework conditions in place to realise the potential. This includes the expansion of infrastructure, as well as clarity when it comes to regulations. Uncertainties carry significant risks and should be avoided. Most recently, myclimate also called for regulations in the area of climate protection.
This is also important in order to take advantage of opportunities vis-à-vis the US, which is currently holding back on acting on sustainability issues. Companies that react early now will benefit from the growing global market for the clean tech industry.
Companies that implement sustainability strategies become more resilient to fluctuations in the price of raw materials, upcoming regulations and expected carbon pricing. They also reduce ongoing operating costs, for example through more efficient systems and processes. This is well received by stakeholders, which also improves access to finance.
Use the free myclimate white paper “Strategic Climate Protection – Safeguarding and Building on your Company’s Success” (only available in German) to plan your next steps.
Or arrange a free personal interview with us – we’d love to get to know you.
