There is no Planet B: Why sustainability should be the last word when it comes to new technology

English writer and philosopher Aldous Huxley observed, “Facts do not cease to exist because they are ignored.”

Put more plainly, when it comes to the global climate crisis, there is no Planet B. 

By 2050, the anticipated global cost of adapting to climate change could reach $500 billion, with the potential to wipe out as much as 18 percent of global GDP. Industrial sub-sectors with low- and medium- temperature heat requirements, such as construction, food, textiles and manufacturing, need to accelerate the electrification of their operations quickly. All told, they need to electrify at more than twice their current level by 2050, from 28 percent in 2016 to 76 percent in 2050. 

Fortunately, for the first time in history, world leaders and business leaders alike are aligning to reduce the impacts of climate change as public opinion has shifted toward making wholesale changes. This includes the subset of investors, consumers and state and federal governments putting new pressure on manufacturers to adhere to stricter environmental standards. Investors are putting more money into climate-conscious companies, with almost $90 billion invested in companies developing climate technology in the year leading up to June 2021 — an increase of 210 percent from the year prior.

Consumers are also much more aware of the environmental impact of their purchases than they have been in the past. Meanwhile, states are passing laws establishing stricter and stricter limits on greenhouse gas emissions, and federal regulators are also taking action. In March 2022, the U.S. Securities and Exchange Commission (SEC) proposed a rule on climate-related disclosures to help investors better understand the climate impacts a company may be facing, as well as how its board and management teams are navigating those impacts. The writing is on the wall: Manufacturers will be rewarded for investing in sustainability and held accountable if they do not. 

The good news is that manufacturers are rising to the occasion across the board. In the past decade, American industrial companies have reduced their carbon footprint by 12 percent, and many are working to accelerate their efforts. For over a decade, many companies have requested that their suppliers reduce their greenhouse gas emissions, with some going so far as to ask suppliers to publicly report their emissions. Many companies are embracing innovative technologies to upgrade their equipment, increase efficiency, as well as replace fossil fuels with alternative renewable energy sources. These moves are both improving the sustainability of companies and enhancing productivity in a positive feedback loop that will drive the acceleration of efforts. 

Rewards are also earned through appealing to increasingly environmentally conscious customers, as well as via attracting the next generation of innovators and problem- solvers to jobs in companies that are leading the way.

The global climate crisis is a major concern for younger people, with half of this generation of students reporting that they want to work in an environmentally sustainable business.

College counselors report that a recent surge in students pursuing environmentally related degrees just keeps gaining momentum.

For many in Gen Z, purpose outweighs profit. Luckily for them — and us — we can do both.

Asutosh Padhi is a senior partner and the managing partner for McKinsey & Company consulting firm in North America. He is the co-author (with Gaurav Batra and Nick Santhanam) of” The Titanium Economy: How Industrial Technology Can Create a Better, Faster, Stronger America” (Public Affairs, October 2022).