Green growth is strong among the Alliance of CEO Climate Leaders BOX 2 In a separate survey, companies in the World Economic Forum’s Alliance of CEO Climate Leaders61 reported similar results to the wider market, with green revenues growing two times faster than conventional ones. Alliance members achieved an average 8% growth per annum in green revenues between 2020 and 2024 (across categories including electric vehicles, clean chemicals and energy-efficient equipment) compared with 4% for their conventional businesses.62Across our portfolio, we are seeing strong market demand that translates into top-line growth. Green solutions have become a key driver of growth. Katharina Beumelburg, Chief Sustainability & New Technologies Officer, Heidelberg Materials 3.2 Companies in the green economy typically obtain access to cheaper capital Companies with green revenues can benefit both when raising equity and borrowing capital. They often enjoy better financing terms, including lower weighted average cost of capital (WACC). BCG analysis found a correlation consistent across all industries that companies with green revenues secure a lower cost of capital at an average of ~43 basis points (bps) less than companies without green revenues (see Figure 15 for detailed WACC discounts on selected industries). Notably, new debt financing vehicles often offer lower-cost financing to companies funding green projects (e.g. green bonds). A lower risk profile of companies in green markets can also justify a lower cost of debt. Leading financial institutions highlight that companies with access to cheaper capital can often generate higher share prices.63 This means that secondary share issues and mergers and acquisitions transactions are less dilutive. A better valuation may support lower interest rates, lowering overall capital costs . As a result, companies with access to cheaper capital can invest in green growth opportunities more easily and efficiently – creating a virtuous cycle that improves revenues, overall financial performance and market valuations . Companies in the green economy accessed capital at up to 104 bps less than non-green competitors Average WACC1 of companies with vs. without green revenues (WACC, n=7,760, 2024)WACC discount2 for companies with green revenues vs. companies without green revenues, selected industries with high green opportunities3,4 (bps, n=4,167, 2024) Companies without green revenuesCompanies with green revenuesUtilitiesConsumer staples Materials Industrials Energy5Consumer discretionary7.4%7.0% -104 bps-95 bps-58 bps-34 bps-16 bps-10 bpsHighest discount Lowest discount -43 bpsAccess to capital for companies with and without green revenues (2024) FIGURE 15 Notes: The analysis only includes companies with a minimum end-market capitalization of $1 billion regardless of whether they engage in green or conventional activities. 1. Simple average weighted average cost of capital (WACC). 2. Discount is calculated as the difference of the average WACC of companies with green revenues minus average WACC of companies without green revenues. Companies with green revenues are defined as all companies with green revenues in 2024 according to Refinitiv database. 3. Selected industries excluding real estate, information technology, healthcare, communication services and financial industries (n=2,593), even if these industries also show a WACC discount for companies with green revenues vs. companies without green revenues. 4. These industries are defined in detail in Appendix 2 . 5. Energy industry includes oil & gas companies. Sources: see endnote.64 Already a Multi-Trillion-Dollar Market: CEO Guide to Growth in the Green Economy 26

Already a Multi-Trillion-Dollar Market 2025