Already a Multi-Trillion-Dollar Market: CEO Guide to Growth in the Green Economy

Foreword 3

Executive summary 4

1 The green economy continues to grow 5

2 One of the biggest growth opportunities on the planet 11

Observation 1: Solutions to decarbonize more than 50% of total emissions are already cost-competitive 12

Observation 2: Markets for deep decarbonization technologies are growing– but much more unevenly 15

Observation 3: Green growth is increasingly spearheaded by China 17

Observation 4: Energy independence is an increasing driver of low-carbon investments 21

Observation 5: Climate adaptation markets are becoming material, including in the Global North 22

3 Companies in the green economy often outperform 24

3.1 Companies grow green revenues faster than conventional lines on average 25

3.2 Companies in the green economy typically obtain access to cheaper capital 26

3.3 Companies in the green economy often benefit from higher valuations 27

4 How to grow in the green economy: lessons from past winners 29

4.1 CEO guide to growing in the green economy 30

4.2 Different avenues to success 38

4.3 Lessons from past winners 41

5 Call to action: how business and government can accelerate the green economy 42

5.1 For companies: plenty more opportunities to harvest 43

5.2 For policy-makers: an opportunity to build resilience and growth 44

Conclusion 45

Appendix 1: Definitions of green economy segments 46

Appendix 2: Definition of Industry Classification Benchmark (ICB) industries 48

Appendix 3: LSEG definition of green revenues 50

Contributors 51

Endnotes 53