By the time COP26 concluded on 2022 November 13, many of the world’s largest companies and financial institutions had voluntarily announced bold new plans aimed at mitigating global warming. More than 5,200 businesses pledged to meet net-zero carbon targets by 2050, and some 450 banks, insurers, and investors—collectively representing $130 trillion in assets and 40 percent of the world’s private capital—committed to making their portfolios climate neutral during the same period. The challenge will be making these plans a reality, not just for a few first movers but for whole industries. A new McKinsey analysis found that capital spending to reach net-zero emissions would need to increase from $5.7 trillion annually today to $9.2 trillion annually over the next three decades. Such a massive reallocation of capital would likely trigger a period of rapid innovation and growth, likely reshaping entire industries and revolutionizing the way businesses create value across industries. Click on the image to access the study.
