Climate change, resource scarcity, and biodiversity loss are not abstract future scenarios; they are already affecting supply chains, business models, and investment decisions today. Companies play a dual role in this context: they cause environmental impacts—such as through greenhouse gas emissions, resource and energy use, and land consumption. However, they are also drivers of innovation in industries such as cleantech and circular economy, and thus a driving force of sustainable transformation.
Transition plans play a key role in the climate and energy sector. They link science-based decarbonization targets (e.g., along the SBTi methodology) with concrete measures across all scopes, establish robust governance structures, and set milestones. This enables companies to integrate physical risks (such as extreme weather events and changes in precipitation) and transitional risks (market changes and regulatory shifts) into their corporate and financing strategies.
Biodiversity loss poses a comparable systemic risk, and only by systematically analyzing their dependencies, impacts, and opportunities can companies actively manage it. Closely linked to climate and biodiversity is the circular economy, which closes raw material loops and reduces resource dependencies.
Proactively managing these transformation issues enhances future viability and creates opportunities for innovative value creation. This includes tapping into new markets and customer segments through new products and services, as well as building greater resilience. This is achieved, among other things, by more efficient use of resources and energy, thereby reducing dependencies in times of geopolitical uncertainty.