Responsibility in 2019 Starts with Our Climate

Of the many societal responsibilities facing each firm, addressing climate change must increasingly rise to the top of all our lists. It certainly has for BCG. And we don’t just need to improve; we need to do more now. Because the less the world improves today, the more ground we have to make up in the years ahead and, given feedback loops, the greater the negative impact on future generations.

We are all experiencing the rise in the earth’s temperatures. The top five hottest years on record were in the past ten years, a period that has also brought warming oceans and rising sea levels, as well as an increase in extreme and catastrophic weather events. Reports since October from the UN and the US, as well as last week’s report on rapidly rising ocean temperatures, have heightened the urgency. So in my first LinkedIn post for 2019, I wanted to share what we are doing to make a difference in this area, and to share the foundation for how we will work to get better in the years ahead.

We are focused on three big areas of opportunity, and as of last year, are a Participant in the UN Global Compact as part of our commitment. First, BCG is uniquely positioned to work with the leading companies in the world to help them shape their agendas. Second, we have opportunities to collaborate with leading public, private, and social sector organizations to create the case and priorities for collective action. And third, like every business, we have the need to improve our own sustainability performance. In this note, I want to briefly highlight what we have been doing on all three fronts. In the months ahead, I will share further thoughts on upcoming opportunities in each area.

Total Societal Impact (TSI) as a Foundation for Individual Company Actions

We have been researching this topic for years—highlighting the need for more action and showing our clients how to make a societal impact agenda work for them. It’s the right move to make—not only for society and because employees and customers care about these issues, but also because it’s good for business. Our extensive research clearly demonstrates the shareholder value creation that comes from smartly investing in sustainability, climate issues, and other ESG performance measures. Subsequent research by Goldman, Citibank, and Bank of America in 2018 drew similar conclusions.

TSI is not about expansion of corporate social responsibility. It’s about leveraging the core business and developing strategies that address substantial societal needs—an approach that will allow companies to responsibly survive and thrive by creating both societal value and shareholder value. We have already been working with many companies on their TSI agendas. In October, we decided to formalize our social impact team as part of our broader practice area community so we can expand its reach and impact.

Working with Industries and Governments on a More Ambitious Climate Agenda

BCG is urging organizations and governments to move far beyond current emissions policies and adopt much more ambitious emissions reductions in their strategies and planning. Last year, we released a new study that outlines the positive economic case for systemic action against climate change. In another major study, BCG worked with 70 leading German industrial companies and associations from all economic sectors across the country. We showed how Germany could most efficiently achieve its climate targets of reducing emissions by 80% to 95% until 2050—a blueprint for many other countries around the world. Reaching these goals will require significant investment but are expected to result in a long-term positive GDP effect on the German economy.

BCG has also worked with WWF, with whom we have been partners since 2012, on a range of projects, including a strategy to accelerate the shift from coal to renewables, research on the economic value of oceans, a strategy to stop the ivory trade, and scenario planning for the future of water in South Africa. We’re currently working with WWF to launch a pioneering new social venture: a blockchain-enabled supply-chain traceability and transparency platform that drives responsible production and consumption.

Upping Our Own Game to Tackle Our Carbon Footprint

Beyond our client and social impact work, BCG aims to be as responsible as possible as a company—to live our purpose and values in everything we do and to constantly seek ways to get better. As part of achieving this, I am very pleased to share that BCG became carbon neutral for all of our emissions starting in 2018. We are fully committed to reducing and offsetting our own carbon footprint, and we have formed a team and set ambitions to accelerate our progress in the years ahead.

We have identified a portfolio of offset projects that directly align with our values, the work of our Social Impact practice, and our TSI and priority UN Sustainable Development Goals. These projects are located in geographies where our emissions are generated, leading to a lasting impact on our communities. And where possible, we selected projects that allow us to partner with clients.

We will look for ways to continue to accelerate the improvement efforts underway in BCG offices around the world and in finding opportunities in our travel patterns, which constitute the bulk of our emissions. We can’t take travel out of consulting work, but we can do better and work smarter—and we will.

 You can learn more about this agenda here, and we will be communicating regularly about this as we learn and evolve as a firm. BCG is a unique platform from which we can make change in the world in so many ways, and we will work hard to make sure that tackling climate change is a top priority. We look forward to engaging with you, learning from you, contributing insights and impact, and being a passionate advocate for change.