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Rising temperatures and their impact on the climate 2022
Business and Climate Change: Towards Net Zero Emissions
Adapting to climate change is critical because, as a recent McKinsey Global Institute report shows, with further
warming unavoidable over the next decade, the risk of physical hazards and nonlinear, socioeconomic jolts is
rising. Mitigating climate change through decarburization represents the other half of the challenge. Scientists
estimate that limiting warming to 1.5 degrees Celsius would reduce the odds of initiating the most dangerous
and irreversible effects of climate change.
While a number of analytic perspectives explain how greenhouse-gas (GHG) emissions would need to evolve to
achieve a 1.5-degree pathway, few paint a clear and comprehensive picture of the actions global business could
take to get there. And little wonder: the range of variables and their complex interaction make any modeling
difficult. As part of an ongoing research effort, we sought to cut through the complexity by examining,
analytically, the degree of change that would be required in each sector of the global economy to reach a 1.5-
degree pathway. What technically feasible carbon-mitigation opportunities—in what combinations and to what
degree—could potentially get us there?
We also assessed, with the help of McKinsey experts in multiple industrial sectors, critical stress points—such
as the pace of vehicle electrification and the speed with which the global power mix shifts to cleaner sources.
We then built a set of scenarios intended to show the trade-offs: If one transition (such as the rise of renewables)
lags, what compensating shifts (such as increased reforestation) would be necessary to get to a 1.5-degree
pathway?
The good news is that a 1.5-degree pathway is technically achievable. The bad news is that the math is
daunting. Such a pathway would require dramatic emissions reductions over the next ten years—starting now.
This article seeks to translate the output of our analytic investigation into a set of discrete business and
economic variables. Our intent is to clarify a series of prominent shifts—encompassing food and forestry, large-
scale electrification, industrial adaptation, clean-power generation, and carbon management and markets—that
would need to happen for the world to move rapidly onto a 1.5-degree pathway.
None of what follows is a forecast. Getting to 1.5 degrees would require significant economic incentives for
companies to invest rapidly and at scale in decarburization efforts. It also would require individuals to make
changes in areas as fundamental as the food they eat and their modes of transport. A markedly different
regulatory environment would likely be necessary to support the required capital formation. Our analysis,
therefore, presents a picture of a world that could be, a clear-eyed reality check on how far we are from
achieving it, and a road map to help business leaders and policy makers better understand, and navigate, the
challenges and choices ahead.
This Motivational video: https://uii.io/climate1
This Motivational video: https://uii.io/climate2
This Motivational video: https://uii.io/climate3
This Motivational video: https://uii.io/climate4

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Rising temperatures and their impact on the climate 2022

  • 1. Rising temperatures and their impact on the climate 2022 Business and Climate Change: Towards Net Zero Emissions Adapting to climate change is critical because, as a recent McKinsey Global Institute report shows, with further warming unavoidable over the next decade, the risk of physical hazards and nonlinear, socioeconomic jolts is rising. Mitigating climate change through decarburization represents the other half of the challenge. Scientists estimate that limiting warming to 1.5 degrees Celsius would reduce the odds of initiating the most dangerous and irreversible effects of climate change. While a number of analytic perspectives explain how greenhouse-gas (GHG) emissions would need to evolve to achieve a 1.5-degree pathway, few paint a clear and comprehensive picture of the actions global business could take to get there. And little wonder: the range of variables and their complex interaction make any modeling difficult. As part of an ongoing research effort, we sought to cut through the complexity by examining, analytically, the degree of change that would be required in each sector of the global economy to reach a 1.5- degree pathway. What technically feasible carbon-mitigation opportunities—in what combinations and to what degree—could potentially get us there? We also assessed, with the help of McKinsey experts in multiple industrial sectors, critical stress points—such as the pace of vehicle electrification and the speed with which the global power mix shifts to cleaner sources. We then built a set of scenarios intended to show the trade-offs: If one transition (such as the rise of renewables) lags, what compensating shifts (such as increased reforestation) would be necessary to get to a 1.5-degree pathway? The good news is that a 1.5-degree pathway is technically achievable. The bad news is that the math is daunting. Such a pathway would require dramatic emissions reductions over the next ten years—starting now. This article seeks to translate the output of our analytic investigation into a set of discrete business and economic variables. Our intent is to clarify a series of prominent shifts—encompassing food and forestry, large- scale electrification, industrial adaptation, clean-power generation, and carbon management and markets—that would need to happen for the world to move rapidly onto a 1.5-degree pathway. None of what follows is a forecast. Getting to 1.5 degrees would require significant economic incentives for companies to invest rapidly and at scale in decarburization efforts. It also would require individuals to make changes in areas as fundamental as the food they eat and their modes of transport. A markedly different regulatory environment would likely be necessary to support the required capital formation. Our analysis, therefore, presents a picture of a world that could be, a clear-eyed reality check on how far we are from achieving it, and a road map to help business leaders and policy makers better understand, and navigate, the challenges and choices ahead. This Motivational video: https://uii.io/climate1 This Motivational video: https://uii.io/climate2 This Motivational video: https://uii.io/climate3 This Motivational video: https://uii.io/climate4