Net Zero Business Models

INTRODUCTION: HOW TO USE THIS BOOK

The primary purpose of Net Zero Business Models is to prepare companies, their executive teams, and their boards of directors to compete successfully and win in the net zero emissions economy. Net Zero Business Models outlines a process to conform a company's business model to a net zero emissions economy and be commercially successful.

In the context of the net zero economy and this book, a company that is commercially successful enjoys positive revenue growth, funds operations and capital expenditures internally, and produces an economic profit greater than the cost of capital over the timeframe needed to attain net zero emissions. (See Exhibit I.1.) Net Zero Business Models provides a framework for companies to use to develop their net zero transition plans to be among the winners in the transition from an economy based on fossil fuels to a zero‐emission one, which we call the “Great Transformation.”

Although we wrote Net Zero Business Models primarily for officers and directors of public companies, the book is useful for asset owners, asset managers, and other institutional investors who need to discern whether their portfolio companies have credible and bona fide net zero transition plans or are just greenwashing.

Net Zero Business Models provides asset owners, asset managers, and other institutional investors with useful frameworks to analyze how well their portfolio companies are progressing toward net zero and managing the related ...