Untapped potential
The report’s findings are based on 16 green transition indicators, assigning participating companies an average score on their progress in implementing green initiatives. Companies then indicate how these measures have impacted their competitiveness across 11 indicators.
The report shows that companies have made the most progress in reducing energy, water, and material consumption. However, there’s still a clear untapped potential for most companies when it comes to supply chain initiatives. Additionally, though nine out of ten companies have implemented at least some green initiatives, only two out of ten have developed a plan or strategy for their green transition.
Although green transition cannot be reduced to a formula, the report highlights that it is the interplay between green initiatives that particularly strengthens competitiveness.
For example, companies may develop new products with lower climate impacts, but without understanding demand or actively communicating these efforts, the business gains can be difficult to realise.
Archetypes of green transition
To deepen the understanding of the relationship between green transition and competitiveness, the analysis divdes companies into five archetypes – Visionaries, Goal-Oriented, Pragmatic, Exploratory, and Reactive – based on how far they have progressed, the pressures they face, and how they approach the agenda. And this is an important additioin to make the evidence of the report more actionable.
“In addition to illustrating the connection, the report provides a deeper understanding of the challenges and opportunities companies face. This offers a solid foundation for targeting future initiatives and ensuring that we, as a foundation, focus where the challenges are greatest while helping companies identify where they can reap the most benefits,” concludes Anders Ziegler Kusk.