In an effort to aid clients in combating climate change, McKinsey is investing in sustainability initiatives. This is evidenced by the firm’s recent acquisitions of Vivid Economics and Planetrics. McKinsey’s acquisitions signify a trend in consulting toward green, sustainability-focused investments. We expect to see this trend accelerate over the next decades. Let’s dig into some details about McKinsey’s recent acquisitions.
Acquisitions Reveal Where McKinsey is Investing
Vivid Economics is a strategic economics consulting firm. It recently launched an analytics arm of the business, Planetrics, to help financial firms quantify, report, and manage climate-related risks and opportunities. This ultimately helps firms move toward net-zero carbon emissions. These two acquisitions signal how and where the strategy giant is both investing and re-allocating resources. This reveals short- and long-term hiring needs for McKinsey, and also hints at the firm’s long-term strategy. It seems that sustainability is becoming more than just a buzzword for McKinsey & Co.
McKinsey hopes that the acquisitions will serve as another tool in the firm’s toolbelt to help clients develop socially sustainable solutions to business issues that have a negative impact on the environment. Planetrics has pledged to price the risks of climate change with a keen focus on future impacts that could further exacerbate climate risks. The company hopes these solutions, backed by analytics and technology, will ultimately signal the future of green businesses. The acquisition builds on McKinsey’s broader goals of helping global business leaders reduce greenhouse gas emissions and better the planet. It also doesn't hurt that the global green technology and sustainability market is set to grow towards $57.8 Billion by 2030.
Conclusion
McKinsey’s acquisitions reveal a conscious effort to take sustainability seriously. Vivid Economics and Planetrics will bolster McKinsey’s climate change capabilities and aid the firm’s efforts to equip businesses with the tools to navigate the climate crisis and make a tangible impact on the environment. They also position themselves to tap into the future growth of a burgeoning market.
Additional Reading:
- McKinsey Announces Earliest Application Deadlines Ever
- McKinsey Salary
- Top 25 Consulting Firms
- Strategy Simplified Podcast