4.3 Lessons from past winners The list of reasons why the green economy represents a massive growth opportunity is long and well understood. But how companies can seize the opportunity to build valuable new green businesses is far from straightforward. Over the last couple of years, CEOs have witnessed this firsthand. A summary of some of their lessons learned is presented below in Box 4. Lessons from past winners BOX 4 DOs: Top advice for CEOs entering or growing in the green economy 1 Personally champion your green ambition : Sustain a clear, driven vision and embed green growth deeply into your core strategy rather than as a side initiative or compliance requirement. 2 Insist on business case rigour: Align your purpose and strategy with value creation, building a resilient operating model. 3 Future-proof your market: Invest in R&D and early pilots to prove your concept before rapidly scaling-up to industrial level. 4 Proactively manage expectations on financials: Bring investors and employees along the profitability journey – in some immature markets short-term profitability may not be the best measure.1 Misguided value proposition: Over-indexing on a green narrative without a robust business case or commercial viability against decarbonization alternatives. 2 Underemphasising costs: Putting too much trust in the long-term ability to charge a green premium while neglecting the need to rigorously slash unit economics. 3 Overreliance on policy: Expecting perpetual policy support or public funding during market scale-up. 4 Incrementalism: Lacking boldness and understanding of green customer value, for example offering a product with “-10% carbon footprint” rather than a “truly net-zero” product. 5 Overcome silos early: Be open to unconventional partnerships with players throughout the value chain, financial institutions, governments and even peers to evolve your industry’s ecosystem.DON’Ts: Common pitfalls for CEOs to avoid Already a Multi-Trillion-Dollar Market: CEO Guide to Growth in the Green Economy 41

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