The Climate Has Changed

Based on data from 1,763 companies, the report shows that low-carbon investments, particularly in energy efficiency and renewables, can deliver significant internal rates of return (IRR). It highlights that 'forward-thinking' companies—those aligning targets with climate science—outperform peers financially. However, it notes that most corporate targets remain insufficient to meet the 2°C global temperature rise limit, calling for stable, long-term policy frameworks to incentivize more expensive, transformational decarbonization.

• Low-carbon investments can yield high financial returns, with an average internal rate of return (IRR) of 27% for forward-thinking companies that align their targets with climate science and reduced emissions intensity between 2012 and 2013.
• Process energy efficiency is a highly profitable low-carbon action, with an average global IRR of 23%, reaching 81% in the United States and 46% in South Africa.
• Between 2012 and 2013, approximately 1,450 companies invested over US$170 billion in low-carbon projects, resulting in annual carbon savings of more than 420 million metric tonnes of CO2e.
• Most companies are not setting carbon reduction targets that align with the scientific requirements to limit global temperature rise to 2°C.
• In the European Union, stringent regulations have driven higher carbon returns per dollar invested compared to the US, although financial returns (IRR) are lower because 'easy-win' efficiency options have already been exhausted.
• Renewable energy investments provide the highest level of global emissions reductions, with industrial sectors seeing an average return of 22% and finance/retail sectors seeing a 29% IRR for installations like rooftop solar.
• Simple behavioral changes, such as switching off lights and computers, offer high returns on investment, with companies reporting an average IRR of 88% and savings of 2.7 million tonnes of CO2e.
• Companies in emerging economies, specifically India and South Africa, are achieving strong financial and carbon returns because they can utilize proven technologies to achieve reductions.
• To accelerate the transition, the report argues that businesses should adopt a 'balanced' portfolio approach, combining high-IRR projects with high-carbon-return projects that may have longer payback periods.
• The report calls for policymakers to provide long-term certainty and 'carrots and sticks,' including the elimination of high-carbon energy subsidies and the implementation of meaningful carbon pricing.

APA

Figueres, C. (n.d.). The Climate Has Changed. We Mean Business Coalition. https://www.wemeanbusinesscoalition.org/wp-content/uploads/2017/08/The-Climate-Has-Changed_3.pdf

Chicago

Figueres, Christiana. The Climate Has Changed. We Mean Business Coalition, n.d. https://www.wemeanbusinesscoalition.org/wp-content/uploads/2017/08/The-Climate-Has-Changed_3.pdf.

Wikipedia

{{cite report |last1=Figueres |first1=Christiana |title=The Climate Has Changed |publisher=We Mean Business Coalition |url=https://www.wemeanbusinesscoalition.org/wp-content/uploads/2017/08/The-Climate-Has-Changed_3.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{figueresndclimate, author = {Figueres, Christiana}, title = {{The Climate Has Changed}}, institution = {We Mean Business Coalition}, url = {https://www.wemeanbusinesscoalition.org/wp-content/uploads/2017/08/The-Climate-Has-Changed_3.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }