Introduction to the Green Economy: 5 Things to Know
The green economy is rapidly becoming the new frontier for businesses, governments, and individuals. Want to get involved? Here are five essential things you should know...
In 2021, a British Business Bank report highlighted small businesses' significant contribution to UK greenhouse gas emissions, accounting for half of all emissions from companies and around a third when including households and public sectors.
However, the transition to net-zero emissions is driving a new economic boom, outpacing the tech explosion of 2009-2019, according to Joe Ahern from WPI Economics, during our 'Sustainability Reimagined' series on LinkedIn.
Small businesses play a crucial role in the green economy, as they shift to sustainable practices and capitalise on new opportunities.
As the world collectively addresses the climate crisis, the green economy is rapidly becoming the new frontier for businesses, governments, and individuals.
Want to get involved? Here are five essential things you should know:
- Carbon Disclosure is Becoming Mandatory
Countries worldwide are making carbon disclosure mandatory, recognising the financial risks climate change poses to businesses.
This shift increases the demand for professionals and technology to support measuring, reporting, and verifying carbon emissions.
As companies need more support in reporting their emissions and assessing climate risks, professional services firms can capitalise on this opportunity by offering their expertise in these areas.
2. Climate Litigation is on the Rise
Climate litigation is becoming an increasingly common issue, with a sharp increase in climate-related cases in recent years.
Companies must manage risk and understand their exposure to legal action. Professional services firms can benefit from this trend by offering expertise in designing and implementing low-carbon transition plans, reporting on climate-related risks, and demonstrating compliance with new standards.
3. Climate "Quitters" Influence Hiring and Retention
Young professionals are increasingly prioritising environmental, social, and governance (ESG) credentials in their job search, leading to the phenomenon of "climate quitting."
Companies must have credible ESG plans to attract and retain top talent. By 2025, 75% of the working population will be millennials, making ESG commitments essential for companies seeking a skilled workforce.
4. The Low Carbon Economy is Growing
The green industrial revolution presents enormous opportunities for job creation, energy security, and export growth. The U.K. net zero sector alone is worth over £70 billion, employing over 800,000 people across 20,000 businesses.
With the potential for growth in green industries, leaders of professional services companies should consider ways to support and participate in this growing ecosystem.
5. Sustainable Marketing is Becoming Essential
Sustainability in marketing is gaining momentum, with sustainability-aligned KPIs, carbon targets, and budgets becoming standard requirements.
Greenwashing claims and fines will increase, and agencies will be implicated alongside their clients.
Educating marketing teams on sustainability and sustainable marketing will become crucial to avoid creating generic and misaligned advertisements.
Digital marketing, specifically, needs to address its hidden impact on the environment, such as the carbon footprint of emails and the energy consumption of video streaming.
Understanding these key aspects of the green economy is essential for businesses and individuals alike, as it presents opportunities for growth, innovation, and creating a more sustainable future.
Embracing these changes will help you stay ahead of the curve and contribute to the global effort in combating climate change.