Climate change is impacting businesses and societies around the world, making climate risk and sustainability a top priority for organizations in all industries. But preparing for such dramatic change is not easy and requires deep expertise and powerful analytics.
Our acquisition of Vivid Economics, a strategic economics consultancy with broad sustainability and macroeconomic capabilities, and Planetrics, a climate analytics suite that helps quantify, report, and manage climate risks, will help our clients navigate the urgent implications of climate change and transform towards net-zero carbon emissions.
Climate risk and response: Physical hazards and socioeconomic impacts
“While progress has been made, the majority of stakeholders are unprepared for the physical and financial impact to their businesses and to society,” says McKinsey senior partner Dickon Pinner. “This acquisition will enable us to help clients across all sectors and geographies transform themselves to successfully navigate the risks and opportunities presented by the economy-wide transition to a more sustainable future.”
“Vivid Economics and Planetrics are a passionate group of people,” Dickon adds, “and together we share a common desire to positively impact business and society.”
In addition to our ongoing research and analysis of climate change and sustainability, we have been regularly convening top business leaders, scientists, government officials, and other influencers in an effort to translate knowledge into action. Vivid Economics and Planetrics will bring expertise, analytics, and experience to our firm, helping clients assess climate and nature-related risk; develop environmentally and socially sustainable strategies; navigate large structural economic shifts; and create value through sustainable transformations.
“McKinsey has been a leading voice in sustainability and climate change,” says Jason Eis, CEO of Vivid Economics and Chairman of Planetrics. “We are looking forward to combining our collective experience, technology, and our analytical and creative thinking in the pursuit of tackling such critical global challenges.”
“We are proud to be joining McKinsey to help clients create a sustainable future,” adds Robin Smale, Director and Co-Founder of Vivid Economics. “This acquisition is a testament to the passion, courage, skill, and hard work of the Vivid Economics and Planetrics teams.”
We are looking forward to combining our collective experience, technology, and our analytical and creative thinking in the pursuit of tackling such critical global challenges.
The addition of Vivid Economics will accelerate our existing Sustainability and Risk & Resilience capabilities and talent, while the Planetrics suite will help our clients generate detailed company and business models that depict the impact of decarbonization and other moves related to climate risk.
“Embedding climate risk factors into every sector has now become an imperative,” says McKinsey senior partner Cindy Levy. “The financial impact of climate change is significant, and stakeholders need the latest intelligence on physical and transition climate risks to re-allocate capital and transform portfolios.”
For more information and to stay informed on our latest research and insights on these topics, please visit McKinsey Sustainability and McKinsey Risk & Resilience.