The future will only be prosperous if businesses embed sustainability at their core. Treasury can play a vital role in this approach, tapping into sustainable financing to help firms embrace different operating models and emerging technologies that benefit both the corporation and the environment.
The global population will be nudging 10 billion by 2050, according to the United Nations, and the energy demands of that number of people will accelerate the climate crisis – unless action is taken to create sustainable systems. This is urgent: the US Energy Information Administration estimates energy demands will grow by almost 50% by 2050.
Meeting that growing demand will require governments, the financial sector, and companies to work together – whether that is in creating new business models with lower carbon footprints or supporting technology, products, and services that offer a greener vision of the future. Treasurers have an essential role to play in that collaboration.
The great pivot: business is changing
There are plenty of incentives for companies to look into environmental, social, and governance (ESG) focused services and products. For example, research from EY finds that revenue from sustainable products is growing at around six times the rate of other products. This is one reason why the number of companies committing to net-zero emissions by the end of the century tripled in 2020.