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A new global survey finds that new-business building can boost growth and value. However, to meet revenue expectations in the future, companies must dramatically increase their efforts.

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It’s an exciting time for new-business building. According to a new McKinsey Global Survey, building new businesses is a top priority for CEOs despite economic volatility, and more new businesses are being built per year now than in the past two to five years. While this presents new opportunities for innovation and growth, companies will need to ramp up the number of businesses they build—and do it quickly—to meet the revenue expectations for the years ahead. Explore the survey led by Markus Berger-de León, Shaun Collins, Ari Libarikian, Ralf Dreischmeier, and Belkis Vasquez-McCall, and learn what over 1,000 business leaders in 75 countries are planning.

New-business building in 2022: Driving growth in volatile times

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“When we talk about dual awareness, it is not only the focus of what is happening. It is also being always in communication with what’s going on for ourselves and asking, ‘How can I take care of myself to sustainably serve in this situation?’”

—Jacqueline Brassey, senior knowledge expert and coauthor of the new book Deliberate Calm, on the two types of necessary awareness in a recent episode of The McKinsey Podcast

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Chart detailing the payments could create an additional $14 billion in value, while achieving the full potential of $40 billion form airline retailing

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Materials are the next net-zero frontier. Which green-materials premiums are emerging?

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Billions to buy green. A group of 65 companies has announced a commitment to buy low-carbon aluminum, low-carbon steel, and other green materials frequently used in construction, transportation, and other industrial sectors. The coalition of corporate buyers revealed its $12 billion pledge at the 2022 UN Climate Change Conference (COP27), taking place in Egypt. The group seeks to spur demand for green materials, decarbonize supply chains, and speed the development of clean technologies. [Bloomberg]

Edited by Belinda Yu
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Green-materials grab

In the news

•

•

Sustainable sourcing. Cement, concrete, and steel account for roughly half of global greenhouse-gas emissions in industrials. Using greener building materials is critical to decarbonizing industry as the climate crisis intensifies, and governments can play a big role. Roughly 25% of the demand for steel and 40% for cement comes from public procurement. But to take action, countries need better data to understand the carbon footprint of materials used in public construction projects. [WEF]

Demand for low-carbon steel is expected to surge from around 84 million tons in 2021 to nearly
200 million tons in 2030.

On McKinsey.com

•

Going green. Materials value chains make up roughly one-fifth of global greenhouse-gas emissions. As consumers, manufacturers, and governments call for increased sustainability, demand for low-carbon materials is growing. For several commodities, green premiums are already emerging and will increasingly shape supply and demand, explain McKinsey senior partner Michel Van Hoey and colleagues. In the past decade, high-quality recycled plastics reached an average premium of up to 60% over virgin plastics for some products.

•

Understanding green premiums. Knowing where green premiums exist today and where they will emerge can help materials players capture economic benefits for sellers and secure supplies of low-carbon products for buyers. For instance, premiums are expected to be high for flat low-carbon steel, with the European market likely to be undersupplied by around 14 million metric tons in 2030, our analysis shows. See three archetypes for forecasting supply and demand of sustainable materials in 2025 and 2030, and the expected premiums that may emerge.

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Lighting a path forward for operations innovation

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AN ARTICLE A DAY, PICKED BY OUR EDITORS

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Global Lighthouse Network members show that Fourth Industrial Revolution technologies help to deliver better workforce engagement, improved sustainability, and increased productivity.

Edited by Sarah Skinner
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Too many companies get stuck in "pilot purgatory"—they try to develop use cases, solutions, and applications, but struggle to scale new approaches or technology effectively. When the World Economic Forum, in collaboration with McKinsey, launched the Global Lighthouse Network in 2018, its goal was to make global production operations more efficient and effective while also positively impacting people and the planet. By identifying "lighthouse" companies that have used Fourth-Revolution technology to make transformations work ahead of the curve, the initiative has helped propel an operations revolution forward. The network has grown from just 16 lighthouses to over 100, with sights set on many more. Don't miss a new episode of the McKinsey Talks Operations podcast featuring senior partner Enno de Boer on improving engagement, productivity, and sustainability while lighting the way for the future of operations.

114 down, 10 million to go: The Global Lighthouse Network’s mission

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Quote of the day

“The biggest advice I have for leaders is to not assume that we know enough on the dimension of health and wellness was to ask questions, to probe, and to seek out resources. Because collectively, we can have a better answer than any individual.”

—McKinsey partner Gayatri Shenai on managing a team member going through a mental health challenge in a new episode of My Rookie Moment

Chart of the day

Chart detailing that te Gulf of Mexico has among the lowest emissions per barrel of all major basins in the world

As Asia grapples with climate change, leaders working at the intersection of customer experience, sustainability and the energy transition will need to respond to five major shifts that will help to smooth the path to net zero. Organizations with a sound understanding of balancing the supply-demand equation between changing consumer needs and energy transition requirements will be in prime position to identify and foster new green-growth opportunities.

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Nurturing supply and demand: How Asia’s energy players can accelerate green growth

Accelerate green growth

XPO’s Brad Jacobs on building businesses through M&A

Having done hundreds of deals, the leader of the logistics company explains what he’s learned matters most when making acquisitions.

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Strategic M&A in US banking: Creating value in uncertain times

Uncertain times can spell opportunity for companies seeking acquisitions—if companies proceed with care. Four actions can help banks maximize the value of their M&A.

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by "McKinsey Daily Read" <publishing@email.mckinsey.com> - 06:07 - 14 Nov 2022

Toward a sustainable, inclusive, growing future: The role of business

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To make the world as sustainable and inclusive as we hope, a certain kind of economic growth will be necessary—and companies will play a vital role in generating it.

New from McKinsey & Company

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Toward a sustainable, inclusive, growing future: The role of business

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Resilience for sustainable, inclusive growth

Accelerating sustainable and inclusive growth

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Can this strategy be saved? A leader’s guide

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ESSENTIALS FOR LEADERS AND THOSE THEY LEAD

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Strategy is a venerable discipline in management, and leaders have access to a wealth of guidance on the topic if they need it. Many classic strategic and organizational frameworks are still relevant. Yet bad strategy continues to plague companies—it may even be a “social contagion,” according to a recent McKinsey Inside the Strategy Room podcast . Theories abound as to why good companies make bad strategic decisions—behavioral economics offers some insights, for example—but ultimately, leaders may need to rely on their own judgment. These signposts may help.

AN IDEA

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Calculate the odds

“In business, as in poker, there is uncertainty, and strategy is about how to deal with it,” says McKinsey senior partner Sven Smit in this article on how to increase the probability of your strategy’s success. “An assessment of your odds—in terms of competitive, market, or regulatory factors—needs to be part of your calculation,” he suggests. Overall, the odds don’t look good: McKinsey research shows that over a ten-year period, only 8 percent of companies move from the middle to the top quintiles of performance. But in the strategy room, the tendency among leaders is to ignore probabilities and try to push toward certainty. “The odds for individual companies vary widely,” says Smit. “The obvious questions for CEOs, managers, and investors, of course, are: What is my strategy’s probability of success, and what actions can we take to improve that probability?”

A BIG NUMBER

4

That’s the number of levels in a classic framework for making sound decisions under uncertainty. Level 4, “true ambiguity,” was rare at the time this McKinsey Quarterly article was written but is probably applicable to most business situations today. The recommendations for this level still apply: for example, even when under intense pressure, “it is critical to avoid the urge to throw up your hands and act purely on instinct,” the authors say. “Instead, managers need to catalog systematically what they know and what it is possible to know.” That includes studying the development of analogous markets, the attributes of winners and losers, and the strategies they employed—all of which may reveal patterns that show how the market may evolve.

A QUOTE

“In life, death can come as a shock. In business, it never should.”

That’s management guru Gary Hamel on the natural death of strategies, often stemming from replication or destruction by competitors. “Like human beings, strategies start to die the moment they’re born,” he writes in this Wall Street Journal article. “With the right metrics, strategy decay is largely predictable, though few companies bother to track it.” By failing to anticipate the eventual decline of strategies that once made them successful, companies hasten their own decline, in Hamel’s view, and “the only way a company can renew its lease on success is by reinventing itself root and branch, before it has to.”

A SPOTLIGHT INTERVIEW

Illustration of a single pyramid with a red ball on top and surrounded by red balls

‘To make any story interesting, you need a villain,’ says McKinsey senior partner Chris Bradley in this podcast on moving strategy into high gear. In strategy, the villain is the “social side,” he says. “When you get to the strategy room, you find it crowded with all sorts of stuff. There are negotiations, there are egos, there are last year’s plans. There are other people, and you want to look good to them. There is so much else going on than just strategy.” Bradley suggests eight practical changes to strategic planning that can overcome social games and help organizations advance up the “power curve” of economic profit to the top quintile, where a small percentage of companies capture most of the profit. For example, leaders may want to consider debating alternative strategic plans rather than a single proposal. “Most companies don’t work like this,” says Bradley. “Their strategies are framed more around promises and financial goals than they are around choices.”

‘FLUFF’

Corporate jargon is often the target of mockery, but it does serve a purpose. After all, at some time or other most of us have thought out of the box, gotten our ducks in a row, or taken things offline. But using harmless buzzwords as office shorthand is one thing; it’s quite another to choke your strategy statement with them . A “hallmark of mediocrity and bad strategy is superficial abstraction—a flurry of fluff—designed to mask the absence of thought,” says UCLA management professor Richard Rumelt in this McKinsey article. “Fluff is a restatement of the obvious, combined with a generous sprinkling of buzzwords that masquerade as expertise.” We’re on the same page.

Lead strategically.

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by "McKinsey Leading Off" <publishing@email.mckinsey.com> - 02:27 - 14 Nov 2022

India is decarbonizing. Our new report charts a pathway to sustainable growth.

On Point

Edited by Belinda Yu
Editor, Atlanta

India’s green transition

In the news

•

Green ambition. EV-charging stations, climate tech start-ups, and corporate India’s focus on sustainability are all signs of activity in India’s clean-energy transition. Investors are increasingly funding companies working in green technologies. India’s climate tech businesses snapped up roughly $2 billion from private investors, out of a global pot of $27 billion in similar investments. Homegrown entrepreneurs are founding companies in areas such as EV charging and carbon accounting, devoting energy and effort to helping the country cut carbon emissions. [WaPo]

•

A threat to health. Pollution is substantially cutting short the life expectancy of Indians. Poor air quality decreases the average Indian’s life expectancy by five years, while in Delhi, air pollution reduces life expectancy by a decade, according to a University of Chicago report. Dust, soot, and other contaminants in the air can shorten life expectancy more than smoking, per the report. Decarbonizing India’s economy should therefore be treated with great urgency, which requires the rapid use of next-generation technologies, experts say. [WEF]

Sustainable-farming practices could help generate additional farmer income of INR 3,400 per hectare per year in the line-of-sight scenario.

On McKinsey.com

•

Net zero by 2070. India is aiming to reach net-zero emissions by 2070, an important milestone in the fight against climate change that was announced at the 2021 UN Climate Change Conference (COP26). Despite having low greenhouse-gas emissions when calculated per person, India is the world’s third-largest emitter, with roughly 70% of emissions driven by six sectors (including power, steel, and automotive). Decarbonizing the country could potentially create 287 gigatons of carbon space for the world, explain McKinsey senior partners Rajat Gupta and Shirish Sankhe and their coauthors.

•

Significant challenges. To fulfill India’s goal of achieving net-zero emissions by 2070, the country needs a large amount of funding. From now until 2050, India may need to invest $7.2 trillion to $12.1 trillion (3.5% to 6.0% of cumulative GDP through this period) in green technologies. But when it comes to decarbonizing India, funding is not the only challenge. There’s also the addition of renewable capacity and the reduction of battery and hydrogen costs, among others. See ten actions to accelerate India’s decarbonization.

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by "McKinsey On Point" <publishing@email.mckinsey.com> - 12:08 - 14 Nov 2022

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by "Schneider Electric" <reply@se.com> - 09:01 - 13 Nov 2022

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The week in charts

The Week in Charts

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ALL THE WEEK’S DATA THAT’S FIT TO VISUALIZE

Our Charting the path to the next normal series offers a daily chart that helps explain a changing world—as we strive toward sustainable and inclusive growth. In case you missed them, this week’s graphics explored the healthcare industry's $1 trillion opportunity to create value and improve care, sustainability developing in the Nordics, the fintech industry in Africa, funding for green infrastructure initiatives, and consumers’ expectations when it comes to digital data.

FEATURED CHART

Need for speed

This week’s other select charts

Net zero and the Nordics

Fintech’s moment in Africa

Land leverage

Consumer trust in a digital world

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¿En la cúspide de una nueva era?

by "McKinsey Week in Charts" <publishing@email.mckinsey.com> - 03:16 - 12 Nov 2022

¿Está el mundo en transición hacia la próxima era?

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Destacados mensuales, Noviembre de 2022

Los acontecimientos actuales —una pandemia global, la escasez de energía, la inflación acelerada y las tensiones geopolíticas— pueden sentirse como un conjunto de terremotos que está reconfigurando nuestro mundo. ¿Estamos en los primeros momentos de un cambio sísmico? En un nuevo documento del McKinsey Global Institute (MGI), el director Chris Bradley, el socio Jeongmin Seong, el presidente y director Sven Smit, y el director Jonathan Woetzel sugieren un marco de referencia para imaginar una nueva era, elaborado desde una perspectiva histórica de la tectónica estructural que ha sustentado al mundo que tenemos hoy y cómo podría desarrollarse. Nuestra segunda historia destacada de este mes proporciona un marco de resiliencia para los líderes empresariales europeos que se enfrentan a una confluencia de crisis y una economía profundamente inestable. Otros temas destacados en la edición de este mes son:

Por qué las mujeres líderes están cambiando de trabajo a la tasa más alta jamás vista
Cómo cultivar la resiliencia organizacional
Por qué el agotamiento ha alcanzado niveles récord en los últimos dos años y qué pueden hacer los líderes al respecto
El impacto de la COVID-19 en las mujeres trabajadoras en México

La selección de nuestros editores

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Las turbulencias económicas y políticas actuales podrían presagiar el comienzo de una nueva era estructuralmente muy diferente y con una nueva narrativa de progreso.

Descargue el documento completo

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Un momento decisivo: Cómo los CEOs de Europa pueden crear resiliencia para crecer en la vorágine económica actual

En estos tiempos excepcionalmente inciertos, los desafíos para las economías europeas son especialmente complejos; para sortearlos, las empresas líderes necesitan transformar su enfoque del crecimiento.

Obtenga una visión más amplia

LOS DESTACADOS DE ESTE MES

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Mujeres en el lugar de trabajo 2022

Las mujeres líderes están cambiando de trabajo a las tasas más altas que hemos visto nunca, y las jóvenes están preparadas para hacer lo mismo. Para lograr un progreso significativo y sostenible hacia la igualdad de género, las empresas deben ir más allá de los elementos esenciales, según el último informe Mujeres en el lugar de trabajo de McKinsey, en asociación con LeanIn.Org. Comprenda el momento

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Aumentar la resiliencia de su organización

Recuperarse repetidamente de la disrupción es difícil, pero algunas empresas tienen una receta para el éxito: una mentalidad de sistemas que enfatiza la agilidad, la seguridad psicológica, el liderazgo adaptable y la cultura cohesiva. Adáptese ahora

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Más allá del agotamiento: Lo que ayuda y lo que no

En todo el mundo, el burnout se ha disparado y los líderes están invirtiendo mucho para tratar de ayudar. ¿Por qué no está funcionando? Enfóquese en la salud mental

Women Matter México 2022: Luces y sombras de la pandemia

En la fuerza laboral de México, la pandemia de la COVID-19 tuvo más impacto en las mujeres que en los hombres. La experiencia sugiere cómo la flexibilidad, el trabajo híbrido y la comunicación eficaz pueden beneficiar a todos los involucrados. Comprenda los desafíos

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Gemelos digitales: ¿Qué podrían hacer por su negocio?

Menos residuos, tiempos de comercialización más cortos, ideas constantes de los clientes: las ventajas de aplicar gemelos digitales son muchas si se dan las condiciones adecuadas. Descubra el potencial

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La renuncia silenciosa y la gestión del desempeño

La rotación laboral está al alza. El compromiso con el trabajo ha bajado. Y las evaluaciones de fin de año ya están aquí. ¿Le preocupa que dar retroalimentación haga que los trabajadores se sientan peor? Comprenda la desconexión

Esperamos que disfrute de los artículos en español que seleccionamos este mes y le recomendamos explorar también los siguientes artículos en inglés.

ALSO NEW

Decarbonising India: Charting a pathway for sustainable growth

US holiday shopping 2022: ’Tis the season to be (cautiously) optimistic

The Titanium Economy: How to overcome the challenge of filling high-quality jobs

The Great Reset: North American asset management in 2022

Embedded finance: Who will lead the next payments revolution?

Author Talks: Turn your work enemies into allies

The scaling imperative for industry 4.0

Digital resilience: Consumer survey finds ample scope for growth

Author Talks: Dismantling double standards in business with CNBC’s Julia Boorstin

How does Gen Z see its place in the working world? With trepidation

Identifying opportunities and starting to build a new green business in the industrial sector

Tech at the edge: Trends reshaping the future of IT and business

What workers want is changing. That could be good for government

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by "Destacados de McKinsey" <publishing@email.mckinsey.com> - 08:45 - 12 Nov 2022

How diversity is transforming Dutch startups, fashion in the metaverse, practicing deliberate calm in turbulent times, and more big reads for the weekend

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CURATED PICKS FOR YOUR DOWNTIME, FROM OUR EDITORS

Stephanie d'Arc Taylor
Editor, Southern California

End-of-year holidays are bearing down, but we’ve got a few more weeks to go before you power off. As you reset for the week ahead, catch up on the week’s essential reads on the burgeoning Dutch startup ecosystem, fashion in the metaverse, practicing deliberate calm in turbulent times, and more.

Change concepts with red paper airplane leading among white

The Netherlands can lead Europe to global prominence in entrepreneurship, write McKinsey senior partners Peter Jacobs and Sven Smit, through encouraging more diverse founders and focusing on scale.

Adopt a global mindset

The metaverse is tailor-made for fashion brands, AnamXR CEO Irene-Marie Seelig told McKinsey senior partner Hamza Khan in a new insight. Here's why.

Sashay away

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In uncertain times, it may be better for leaders to pause before pouncing. Listen to Aaron De Smet and Jacqueline Brassey explain why on a new McKinsey podcast, and be sure to check out their new book Deliberate Calm.

Get necessary awareness

Our weekly briefing note on sustainable and inclusive growth explores how the renewable energy sector can replenish its talent pools, depleted by the Great Attrition.

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Quote of the day

“We face the reality that investments in technology and procurement have been lagging behind other functions for quite some time because you need both—investments and technology—to drive the effectiveness of procurement, giving better insight into your category managers.”

—McKinsey partner Roman Belotserkovskiy on how the procurement organization can help drive value long term in a recent episode of McKinsey Talks Operations

Chart of the day

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How well do you know the numbers behind the changes in business, society, and the world? Take the McKinsey weekly quiz to find out.

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Data Points: Your weekly quiz

Take the quiz

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What is inflation?

The answer to this question—and others—is available in our new McKinsey Explainers series. Early access to the full series is available exclusively on our Insights app.

Understand the current moment

50-Across: How medicine is often taken

Know the answer? Test yourself with the latest McKinsey Crossword, Non-Gray Anatomy | No. 101.

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Debit or credit? How retail banks win in the new digital age

The Shortlist

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OUR BEST IDEAS, QUICK AND CURATED | NOVEMBER 11, 2022

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Edited by Barbara Tierney
Senior Editor, New York

This week, we look at how retail banking incumbents, and even central banks, are shifting toward digital models. Plus, a new report on decarbonizing India, and an interview with management expert Richard Rumelt on how not to talk about strategy.

Change machines. Remember going to the bank? Depositing a paycheck, taking out some 20s for the weekend, maybe getting a new box of checks? For consumers and retail banks alike, that reality is (way) in the rearview mirror. Thanks to the likes of digital wallets and payment systems embedded in consumer apps, fintechs, software makers, and other disruptors are forcing banks, and even central banks, to keep up.

Pay app. Nearly nine in ten Americans are now using some form of digital payments, according to McKinsey’s 2022 Digital Payments Consumer Survey, the seventh such annual effort that has chronicled the continued mainstreaming of digital payments. Between 2018 and 2021, the number of noncash retail payment transactions increased globally at a CAGR of 13 percent. Now, the fastest growth is coming in emerging markets , with a 25 percent CAGR in noncash retail payment transactions.

Embedded finance. The reality today is that new small start-ups may never interact with a conventional bank. By logging into their e-commerce or accounting platform, they can open a deposit account, order a debit card, and meet most of their financing needs. These platforms are often not operated by banks but rather by software companies that partner with banks and technology providers. So-called embedded-finance products reached $20 billion in revenues in the United States alone in 2021, according to McKinsey’s market-sizing model, and could double in size within the next three to five years. Still, many banks, payments providers, fintechs, and others are unsure of how to crack the market. McKinsey partners Andy Dresner , Albion Murati , and Jonathan Zell do some demystifying in “Embedded finance: Who will lead the next payments revolution?”

Cash free. On the flip side, people are using a lot less cash. In Europe, cash usage declined by roughly one-third between 2014 and 2021, dropping to as low as 3 percent (in Norway) of overall payment transactions. At the same time, there’s a growing interest around the world in privately issued digital assets. Those factors, among others, are prompting global central banks to reassess their roles, with 90 percent pursuing digital-currency projects. That means it’s imperative for traditional banks to engage central banks to learn more about digital initiatives and help shape future models.

Universal appeal. Where does all this leave traditional banks? The current model of universal retail banking—institutions that offer everyday deposit and payment products, along with loans, investing, and wealth management services—is unsustainable over the long term. To thrive in the new digital world, banks must reinvent themselves, focusing on businesses where they can achieve and extend market leadership. While we believe incumbent banks will continue to lead in retail banking, those running the old playbook will not survive. Here are the hallmarks of the new winners.

Off the charts

Decarbonising India: A decisive decade

A new McKinsey report, Decarbonising India: Charting a pathway for sustainable growth, models the outcomes of India’s net-zero journey along two scenarios: first, the present, line-of-sight scenario, with current (and announced) policies and foreseeable technology adoption; and second, the accelerated scenario, with far-reaching polices such as introducing carbon pricing and ramping up technology adoption. The analysis shows that the benefits of a well-planned and accelerated transition could outweigh the downsides, given India’s growth outlook. Still, many challenges remain.

Chart of various challenges for India's decarbonization process

Check out our chart of the day here.

PODCAST

Why strategy sessions can become ‘success theater’

In the latest episode of our Inside the Strategy Room podcast, Richard Rumelt, author and long-time professor at the UCLA Anderson School of Management, talks with McKinsey senior partner Yuval Atsmon about the parallels between mountain climbing and strategy, the difficulty in committing to choices, and strategy sessions as “success theater.” Rumelt cautions: “The beginning of strategy is, which of these ambitions can we make progress on today or in the near future? Then you formulate an action plan. This gap between action and ambition is where most bad strategies come from.”

More on McKinsey.com

Stepping up: What COOs will need to succeed | COOs are increasingly important to corporations, but what skills will they need to perform at their best? We spoke with COOs from various sectors about what skills they see as necessary to operate effectively in the years to come.

Smart scheduling: How to solve workforce-planning challenges with AI AI-driven schedule optimizers can alleviate age-old scheduling headaches—reducing employee downtime, improving productivity, and minimizing schedule-related service disruptions.

How to overcome the challenge of filling high-quality jobs | Thriving industrial-technology companies use apprenticeships, upskilling, and upward mobility to staff and retain their workforces. These practices could help remediate the growth of income inequality and broaden opportunities for more people.

PARTING QUOTE

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BACKTALK

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by "McKinsey Shortlist" <publishing@email.mckinsey.com> - 02:41 - 11 Nov 2022

How can CEOs fulfill net-zero promises amid increasing volatility?

On Point

Edited by Belinda Yu
Editor, Atlanta

Navigating to net zero

In the news

•

Sustainable business. Business leaders said at a recent CEO conference that collaborating with suppliers and being transparent about a company’s carbon footprint is needed to reach the goal of net-zero emissions by 2050. Consumer interest in environmental issues is high, with six in ten customers ready to spend more to vacation at an eco-friendly property, said the president of a large hotel chain. Being sustainable is a matter of existence, the CEO of a global beverage company added: “If there is no water … then we don’t have beer.” [Fortune]

•

Validating corporate net-zero targets. Companies making net-zero pledges are confronting more stringent demands for validating corporate emissions-reduction targets. Under policy changes set by a partnership of climate-focused organizations, companies will have up to 24 months to submit detailed decarbonization plans. In addition, companies that do not comply by the 24-month deadline or renege on a commitment to decarbonize will appear in a database indefinitely. The changes go into effect on January 31, 2023. [Bloomberg]

Two objectives should be paramount: to extend and decarbonize the core business and to build new sustainable businesses in reshaped value chains.

On McKinsey.com

•

Delivering on net zero. Against the backdrop of the 2022 UN Climate Change Conference (COP27) in Egypt, pressure to show progress on sustainability is intensifying. At the same time, the world is becoming more challenging for CEOs and business leaders to navigate. Executives must make clear how they will transition their organizations to net zero while also building resilience against ongoing volatility, explain McKinsey global managing partner Bob Sternfels, senior partners Daniel Pacthod and Humayun Tai, and partner Anna Moore.

•

Staying the course. Instead of pausing during these turbulent times, leaders that stay the course could gain strategic distance from competitors. For instance, companies’ commitments to decarbonize are already driving up demand for low-carbon materials. In 2030, McKinsey analysis finds that there may be a 50% to 60% shortage in recycled plastics compared with demand, driving significant green premiums. Discover five actions that can help CEOs lead resiliently while pursuing net-zero goals.

See five ways to build resilience

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AN ARTICLE A DAY, PICKED BY OUR EDITORS

by "McKinsey On Point" <publishing@email.mckinsey.com> - 12:52 - 11 Nov 2022

My Rookie Moment: Wellness

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Edited by Joyce Yoo
Editor, New York

Wellness in all of its dimensions should be a fundamental part of our personal and professional lives. Unfortunately, prioritizing one’s health and wellness can often take a back seat when working on an important project or task, or dealing with a stressful situation. In the latest episode of My Rookie Moment, McKinsey senior leaders Sherina Ebrahim, Johanne Lavoie, Asheet Mehta, Liz Hilton Segel, and Gayatri Shenai share how they’ve dealt with matters related to health and wellbeing and what they’ve learned through those experiences. Be sure to tune into all five videos, and make wellness a priority.

My Rookie Moment: Wellness

Consultants are no strangers to dealing with stressful and high-pressure situations. Those are the times when a focus on health and wellness are probably most crucial—and, unfortunately, also when such concerns tend to fall by the wayside. Wellness comes in many different forms and should be an important part of the way we work. In this episode, Sherina Ebrahim, Johanne Lavoie, Asheet Mehta, Liz Hilton Segel, and Gayatri Shenai talk about issues such as managing a colleague going through mental health challenges, navigating work after returning from parental leave, and learning to respect psychological boundaries while coaching someone.

Watch episode 11

Quote of the day

“There is always uncertainty, and smart investors will always move with the times. The mindset that can increase the odds of success is to see challenges but to look for the opportunities in them as well as see the risks.”

—Alex Guy, a partner at the law firm Ashurst, on the mindset needed to be successful when investing in sustainable infrastructure projects in a recent episode of McKinsey Talks Operations

Chart of the day

Chart detailing that consumers value digital trust

The industries that make up the built environment are highly fragmented and slow to change. Creating green growth requires shifts in how players design, build, operate, and decommission assets.

ALSO NEW

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Accelerating green growth in the built environment

Accelerate progress

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Key trends in US logistics according to 70 CXOs

The sector’s brightest minds have shed light on three key trends that logistics providers could implement in the face of market disruptions.

Learn more

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Federal funding may boost social determinants of health infrastructure

Federal-funding mechanisms represent an often-underused funding source for public- and private-sector stakeholders when enhancing SDoH data, analytics, and technology infrastructure.

Learn more

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