Go Green, Boost Profits

Michael Lierow

Developing a sustainable business is not just good for the planet. It’s also good for business. Done right, a company can gain a significant and lasting competitive advantage by developing a more environmentally-sensitive business model. That’s because it will enable a company to pursue new avenues of growth and avoid soaring resource costs, consumer desertion, and unending regulatory pressure.

Our research shows that companies in countries that are members of the Organisation of Economic Co-operation and Development can boost their annual profits by at least $765 billion and reduce their carbon emissions by 2.5 billion tons if they implement selective measures such as reducing material input and waste or improving their supply chain operations. The time to take these actions is now.

Michael Lierow is a Munich-based partner at Oliver Wyman and head of the firm’s Sustainability Center.

Source: US Census, EIA study on the rail sector, US Department of Transportation annual report, 7th framework program for research and development (Eureapa), Oliver Wyman analysis
Note: OECD countries only, potential impacts of selected

Go Green, Boost Profits


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