This report argues that accelerating the pace of decarbonisation is both urgent and within reach for businesses. Drawing on three theoretical systems, it outlines principles and mindset shifts for business innovators and incumbents to align profit motives with rapid decarbonisation. There is a need for a systemic approach, with full alignment between business and societal interests. The report also discusses the tension between rapid decarbonisation and sustainable development, posing important questions for further research and conversation.

Principles and mindset shifts

The report proposes six principles for businesses to accelerate rapid decarbonisation. The first principle encourages businesses to innovate, committing to a smart, green world, and anticipating and accelerating demand for the emerging green aspirational lifestyle. Scaling relentlessly through cross-industry and cross-geography approaches to scaling, and targeting first-mover advantages, is the second principle. The third principle is influencing policy progress, cooperating with practicality, waking up to risk and challenges ahead, and addressing the physical risks of climate change are also important.

Case study overview

The report’s case study focuses on the decarbonisation of the light road transport sector, outlining principles and mindset shifts for innovators and incumbents. It suggests that to become industry leaders, businesses should beat the market, driving a shift in the competitive landscape and innovating and committing to a smart, green world. They should also scale relentlessly, cooperate with pragmatism, and wake up to risk and challenges ahead.

Implications

Radical change is needed to successfully decarbonise quickly, and the report suggests that businesses can drive this change alongside societal interests. It proposes a suite of mindset shifts that can support accelerated innovation, and identifies high-leverage interventions and opportunities for profitability in green industries. Aligning business interests with societal ones means recognising the physical risks of climate change and addressing ethical dilemmas around prioritising rapid decarbonisation over sustainable development.

The report focuses on environmental issues concerning climate change. It provides recommendations for businesses on how to align their profit motive with rapid decarbonisation, reducing their carbon footprint, and promoting sustainable development. It also highlights the importance of cooperation with coalitions for information sharing and responsible business leadership.

Overall, businesses that embrace the proposed principles and mindset shifts will ultimately position themselves for a competitive edge in the emerging green industry, leading to strong ESG outcomes, a lower carbon footprint, and increased societal value.