COP 28 is coming: What you need to know

The Shortlist

Four new insights ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ 
The CEO Shortlist
The CEO Shortlist

Curated by Liz Hilton Segel, chief client officer and managing partner, global industry practices, & Homayoun Hatami, managing partner, global client capabilities

It’s that time of year again. As the weather cools in the Northern Hemisphere, our minds turn once again to COP, or Conference of the Parties, the annual climate conference where UN member states discuss progress toward net zero. We understand the challenges of meeting climate pledges, and we’re committed to helping CEOs, both present and future, do the best they can—for their organizations and for the environment. In this edition, we look at some of our best ideas on the energy transition: avoiding disorder, finding out if customers are willing to pay, and more. We hope you enjoy the read.

—Liz and Homayoun

An image linking to the web page “Five key action areas to put Europe’s energy transition on a more orderly path” on McKinsey.com.

“Go west, young man, and grow up with the country.” That was 19th-century advice to young Americans seeking opportunity. Let’s update it for the 21st century: go west, young people, and lead Western companies and economies to a sustainable future. The West is a chief source of emissions—and opportunities. Two McKinsey reports from 2023 explain the details.

Toward a more orderly US energy transition: Six key action areas, by Gracie Brown, Blake Houghton, Jesse Noffsinger, Hamid Samandari, and Humayun Tai.

Five key action areas to put Europe’s energy transition on a more orderly path, by Tommaso Cavina, Lorenzo Moavera Milanesi, Hamid Samandari, Humayun Tai, and Raffael Winter.

An image linking to the web page “Consumers care about sustainability—and back it up with their wallets” on McKinsey.com.

Of course I’m into sustainability. Why, what have you heard? Millions on social media and in casual conversation are quick to hype their green cred. But away from the scrutiny of their peers, will they actually pay more for a product that claims to be sustainable? According to an extensive new study by McKinsey and NielsenIQ, the short answer is yes—and that means a major growth opportunity for consumer-packaged-goods companies that understand the nuanced influence of environmental claims on customer purchase decisions.

For specific insights on how companies can advance environmental, social, and governance (ESG) commitments while pursuing differentiated growth, read Consumers care about sustainability—and back it up with their wallets, by Jordan Bar Am, Vinit Doshi, Anandi Malik, Steve Noble, and Sherry Frey.

An image linking to the web page “Climate investing: Continuing breakout growth through uncertain times” on McKinsey.com.

Some trees might actually grow to the sky, or thereabouts. Investments in climate technology are still on the rise, defying the headwinds that have affected most capital markets. New regulations such as the US Inflation Regulation Act and EU Green Deal are helping. We estimate the total opportunity at $9 trillion to $12 trillion annually by 2030.

Get in on—or close to—the ground floor with Climate investing: Continuing breakout growth through uncertain times, by Fredrik Dahlqvist, Sean Kane, Lisa Leinert, Maximilian Moosburger, and Anders Rasmussen

An image linking to the web page “The triple play: Growth, profit, and sustainability” on McKinsey.com.

Growing the top line is good. Growing the bottom line is better. And best of all is growth that accrues to the benefit of all stakeholders. Our new research finds that companies that are “triple outperformers”—meaning they grow faster and are more profitable than peers while also improving sustainability and ESG efforts—exceed their peers in shareholder returns.

Hit the trifecta with The triple play: Growth, profit, and sustainability, by Rebecca Doherty, Claudia Kampel, Anna Koivuniemi, Lucy Pérez, and Werner Rehm.

We hope you find our sustainability content inspiring and helpful. See you in two weeks with four more McKinsey ideas for the CEO and others in the C-suite. 

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by "McKinsey CEO Shortlist" <publishing@email.mckinsey.com> - 03:38 - 20 Oct 2023