The McKinsey Week in CHARTS

 

 

 

Following the money for racial justice

 February 28, 2023

Companies continue to pledge funding to fight racial injustice. But where is the money going? The answer is often unclear, find partner Duwain Pinder and colleagues. In a recent analysis of racial equity commitments from Fortune 1000 companies, more than USD 112 billion worth of commitments have been broader in scope, versus pledges dedicated to specific areas such as small and medium businesses and affordable housing. In some cases, companies donate to an initiative that pools funds, and the initiative leaders are then responsible for deploying the money.

 

To read the article, see “Corporate commitments to racial justice: An update,” February 21, 2023.

 

 

Betting the farm on agtech?

March 2, 2023

Agriculture technology (agtech) can provide operational cost savings and boost growth that is less resource-intensive, note partner David Fiocco and coauthors. But their global survey of more than 5500 farmers revealed that agtech adoption—for technologies including farm management software and remote sensing—varies widely depending on region, with some farmers concerned about ROI and high prices.

To read the article, see “Agtech: Breaking down the farmer adoption dilemma,” February 7, 2023.

 

Dollars and planetary sense

 

March 1, 2023

Climate change is just one sign that humans have put a strain on the planet. According to the findings of senior partner Hamid Samandari and co-authors, human activity has pushed the Earth beyond a safe operating space in at least four areas: biodiversity loss, chemical and plastic pollution, nutrient pollution, and greenhouse-gas emissions. Practices such as regenerative agriculture and reducing food waste, among other measures, would not only give the planet a lifeline—they could provide a positive return on investment for companies.

To read the report, see “Nature in the balance: What companies can do to restore natural capital,” December 5, 2022.

 

Calling on dispatch

February 27, 2023

Renewable energy sources are a critical component of Europe’s decarbonization efforts, and are expected to provide 60 percent of the continent’s energy capacity by 2030, find senior partner Alexander Weiss and colleagues. However, wind and solar are intermittent sources of power—that is, they aren’t dispatchable. Without more clean sources of dispatchable capacity (battery systems and hydrogen, for example), Europe could face a dispatchable capacity gap of 116 GW by 2035—the equivalent of 19 %  of peak-load demand.

To read the article, see “Four themes shaping the future of the stormy European power market,” January 27, 2023.

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