The immediacy, pace and extent of change are still widely underestimated, but early movers can seize significant advantages. This report shows how.

Global climate action accelerates. After years of inadequate action to counter the threat of climate change, actors across all sectors are waking up to the challenge. Governments and businesses are setting targets that would have been unthinkable even three to four years ago. In areas where they do not move quickly enough, others, including investors and courts, are stepping in in greater numbers. The dam of inertia is cracking.

Change will happen faster than you think. The netzero transition will decisively accelerate this decade. It will disrupt many sectors of the world economy. Many companies are still ill-prepared because much of the data they use to inform their decisions about the future is outdated. Disruptive technological progress and policy action are all happening in a non-linear way and occurring much faster than anticipated. Collectively, companies underestimate the change ahead and act too conservatively, risking stranded assets and obsolete business models as a result.

The net-zero transition is an opportunity. An accelerating net-zero transition will challenge heritage business models and create opportunities for early movers. Climate leaders can attract and retain better talent, realize higher growth, save costs, avoid regulatory risk, access cheaper capital and create new sources of value for customers. Done well, this will translate to higher shareholder returns and a sustainable source of competitive advantage.