Are you in (the Move-2-clean) or not ?
In case you’re still in doubt, the transition to a low-carbon economy is inevitable. But what matters most is understanding the risks of a wait-and-see approach.
Hesitation to adopt more sustainable practices largely stems from a preference for the status quo, driven by loss aversion. This mindset leads to a risky bet—assuming the energy transition might fail, which is highly unlikely.
Key points covered in this excellent article:
- The disappearance of the “green premium”: Clean technologies have become affordable, making their adoption more profitable in the long run.
- The growth of electric vehicles (EVs): Demand is skyrocketing despite supply chain challenges.
- Regulatory incentives: Laws like the U.S. Inflation Reduction Act are accelerating investment in clean technologies.
- Sustainability commitments: A growing number of companies are pledging to cut emissions and adapt their offerings under pressure from both customers and shareholders.
A wait-and-see approach is risky; it’s better to act proactively to position yourself in the decarbonized economy of tomorrow. Or you can always wait—and risk being caught off guard by regulatory and competitive pressures…
To go further
“Don’t Bet Against the Move to Clean Energy”
by Steven Goldbach, Geoff Tuff, and Derek Pankratz, MIT Sloan Management review Sept.2024.
© Copyright Business Digest - All rights reserved
