CEO climate alliance ‘demonstrates sustainable growth’ by cutting emissions and increasing revenue

The World Economic Forum (WEF) CEO Climate Alliance achieved an aggregate 10% emissions reduction while increasing revenue by 18% over the three years to 2022.

The alliance was launched around the time the Paris Agreement was signed, and includes more than 120 CEOs and senior executives across 12 industries such as healthcare, retail, heavy industry and agriculture. It is co-chaired by the Chairs and CEOs of Ingka Group, Novonesis, ReNew, Royal Philips and BCG, and the Managing Director of the WEF’s Center for Nature & Climate.

Together, the members representing US$4 trillion in revenue and 12 million employees reduced emissions by 10% (a total of 450 million tonnes) from 2019 to 2022, all the while growing sales and revenue at a faster pace than global GDP growth. 

This result, shared at Climate Week NYC, serves to “demonstrate the achievable reality of sustainable economic growth”, according to the WEF.

Green growth is ‘a real value driver’

“This is clear evidence of the value of membership in this type of alliance,” said Feike Sijbesma, Chair of the Supervisory Board of Royal Philips and founding Co-Chair of the Alliance of CEO Climate Leaders. 

“The results prove that green growth is not just an idea for the future but a real value driver today. Moreover, they highlight the benefits of collaborative action for front-runners like the alliance members who are committed to driving real-world change. Our members continue to work together, sharing knowledge and learning from each other’s transition efforts – which has helped us to achieve this remarkable value creation with simultaneous emissions reductions.”

Alliance of CEO Climate Leaders: Focus on Scope 3

The alliance’s members include companies praised for their climate policy engagement, such as Ingka Group (IKEA), DSM-firmenich and Unilever, as well as Bank of America, H&M, HSBC, Mastercard, Nestlé and PepsiCo.

They collectively reduced emissions by addressing all three scopes, with a particular focus on Scope 3, since this category represents over 85% of the alliance’s combined footprint. As an example, in 2023, 19% more alliance members included sustainability criteria in their procurement decisions, supported suppliers to measure and reduce emissions, and engaged in financing initiatives such as paying green premiums. 

At the same time, 12% more members started addressing their Scope 3 downstream emissions through sustainable product design and client partnerships.

“We hope these results encourage more businesses to join us in applying their knowledge and skills to transition to a truly global, net-zero economy that benefits communities all around the world,” said Sumant Sinha, Chairman and CEO of ReNew and Co-Chair of the Alliance of CEO Climate Leaders.