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Thursday, February 7, 2008

'How companies think about climate'

About 60 per cent of global executives surveyed by The McKinsey Quarterly regard climate change as strategically important, and a majority consider it important to product development, investment planning, and brand management.

Fewer companies, however, act on these opinions. More than one-third of executives say their companies seldom or never consider climate change when developing overall strategy.

Nonetheless, executives express optimism about the business prospects of addressing climate change. Sixty-one percent expect the issues associated with climate change to boost profits—if managed well.

Despite the uncertainties around regulation, a remarkable 82 percent of executives expect some form of climate change regulation in their companies’ home country within five years.

The survey, which included respondents from a range of industries (some 40 per cent of whom are evenly split between finance and manufacturing, with another 8 per cent in energy, transport, or mining), finds that fully 60 per cent of global executives view climate change as important to consider within their companies' overall strategy. This feeling is most widespread in developed Asia, China, Europe, where 71, 68, 75 per cent of executives, respectively, agree.

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