1、How incumbents can succeed in climate-driven growth investments As incumbents navigate through cycles,early moversand our hyperscaling formulaoffer insight into how to approach and successfully build climate technology businesses.by Anna Granskog,Mark Patel,Rajat Gupta,and Stefan HelmckeApril 2025Wh

2、ile there has been a recent,notable shift in sentiment toward investing in climate solutions,it is important for companies to maintain a long-term,through-cycle view,as action to mitigate emissions is needed more than ever.Corporate investments in building new climate technology businesses have been

3、 rising consistently from 2019 to 2023,driving growth for those investing actively,but current deployment levels of low-emission technologies are at only 10 percent of the levels required to reach net zero by 2050.1Incumbent companies,particularly in capital-intensive industries,can play a role in b

4、ridging these gaps.As some of the most well-established companies across the globe,these incumbents have inherent advantages including balance sheet size,organizational scale,experience in capital project delivery,and strategic and R&D capabilities.There has been recent turmoilincluding announcement

5、s of delayed investment,abandoned projects,and watered-down corporate decarbonization commitmentsbut looking at the historical development from 2019 to 2023,there has also been a clear ramping up in investment.In the midst of recent headwinds,it is imperative for incumbents to also focus on profitab

6、ility to ensure sustainable growth,as they navigate through cycles in climate technology businesses.This report looks at the incumbent companies that have invested in new climate techdriven businesses in the recent past to identify what can be learned from their experiences.We explore how incumbents