As the total size of the green economy is poised to surpass $7 trillion within this decade, opportunities still abound. Recent changes in the global environment should not dissuade companies from making bold (albeit well-informed) investments. For many of the companies that have already made those moves, the bet has paid off. Several Boston Consulting Group correlation analyses show that on average these companies are exposed to higher-growth markets, typically obtaining access to cheaper capital and outperforming on revenue- focused multiples. As a result, they often grow faster and excel in capital markets.56 3.1 Companies grow green revenues faster than conventional lines on average Given the strong growth of the underlying market segments, it is not surprising that green revenues grow faster than conventional ones. Between 2020 and 2024, the 6,500+ publicly listed global companies57 analysed by London Stock Exchange Group (LSEG), a global provider of financial markets infrastructure, grew green revenues in aggregate by 12% annually – twice as fast as conventional business lines (see Figure 14). Growth was strongest among companies where green products made up a material part of their business: more than half of the companies achieving a CAGR greater than 30% over the surveyed period had at least 10% green revenues in 2024. Conventional vs. green revenues, average and by industry (2020-24) FIGURE 14 Higher green growth is widespread across sectors. In nine of the largest 11 sectors,59 green revenues grew faster than conventional revenues over the analysed period. Energy stands out with strong double-digit growth across all areas: the sector’s green revenues grew at 33% CAGR from 2020 to 2024 – over twice as fast as conventional revenues at 14%. Nearly all sectors achieved double-digit compound annual growth rates in green business. Even in industrials, which already had the largest green revenues in absolute terms, demand for green solutions still grew at almost 10%. This sector is a perfect example of a market where green activities continue to grow rapidly, while some “grey markets” are losing momentum and even stagnating.60 More than half of the companies achieving a CAGR greater than 30% over the surveyed period had at least 10% green revenues in 2024. Green revenues grew on average 2x faster than conventional revenues from 2020 to 2024 Conventional vs. green revenues evolution ($ trillion, n=6,964, 2020-24)Conventional vs. green revenues evolution, selected industries with high green opportunities1,2 ($ trillion, n=3,052, 2020-24) Conventional revenue Green revenue2020 2020 2024 2024 2020 2024 2020 2024 2020 2024 2020 2024+6%+12%CAGR 2020-24 x2.1 +7%+25% x3.9 +4%+12% x2.8 +14%+33% x2.3 +6%+10% x1.6 +5%+6% x1.1$ trillionHighest difference in growth Lowest difference in growth Consumer discretionary Consumer staples Energy3 Industrials Utilities CAGR 2020-24CAGR 2020-24CAGR 2020-24CAGR 2020-24CAGR 2020-24 4454 93%12%7% 1% 2% 2% 4%15% 13%23% 24% 88% 99% 98% 98% 96%85% 87%77% 76%5 34759 Notes: The analysis includes only companies with a minimum end-market capitalization of $1 billion, regardless of whether they engage in green or conventional activities. For LSEG’s definition of “green revenues”, see Appendix 3 . 1. Selected industries, excluding real estate, information technology, healthcare, communication services, financial industries and materials (n=3,912). 2. These industries are defined in detail in Appendix 2 . 3. Energy industry includes oil & gas companies. Sources: see endnote.58 Already a Multi-Trillion-Dollar Market: CEO Guide to Growth in the Green Economy 25

Already a Multi-Trillion-Dollar Market 2025