Future-Proof with Sustainability
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For companies ignoring climate risk, the
financial consequences are mounting.
Research from Boston Consulting Group
(BCG) reveals that physical climate risks
alone could put between 5% and 25% of
2050 EBITDA at risk for companies,
depending on their sector and
geographic footprint. These risks include
asset damage, supply chain disruption,
insurance volatility, and the long-term
erosion of market share for companies
unable to adapt. The costs aren't
theoretical—they're already being felt.
The broader macroeconomic case is
equally compelling. BCG estimates that
the world needs to invest around 2% of
cumulative global GDP in climate
mitigation and another 1% in adaptation
to limit warming to below 2°C. While that
may sound steep, the cost of inaction is
far greater: failing to act could result in
10% to 15% in lost global GDP by
century's end.
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The Cost of Climate Inaction
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Corporate Leaders Are Not Slowing Down
Despite political and regulatory
headwinds, corporate ambition on
climate is rising—not retreating. A 2025
report from MSCI shows a sharp increase
in companies setting science-based
climate goals. The share of listed firms
with validated Science Based Targets
initiative (SBTi) commitments rose to
14.2%, up from just 9.3% the previous
year. Meanwhile, nearly 30% of
companies now have companywide net-
zero targets in place, signaling a
continued shift toward long-term
decarbonization.
This ambition is matched by conviction.
According to Workiva's 2024 CEO
survey, 85% of executives planning to
disclose emissions say they will proceed
regardless of political developments.
Even more telling, 97% believe strong
sustainability reporting will deliver a
competitive advantage in the next two
years. These aren't fringe voices—they
represent mainstream business
leadership adapting to investor
expectations, regulatory evolution, and
the operational logic of sustainability.
