Description

In today's rapidly evolving global landscape, marked by decarbonization, urbanization, and digital transformation, Frost & Sullivan recognizes the imperative for firms to redefine their fundamental purpose. There is a growing awareness of the significance of the value creation of climate change mitigation across all stakeholders, including consumers, employees, suppliers, and policymakers. This consciousness has led to an increased emphasis on adhering to environmental standards.

Businesses at the forefront of implementing climate actions have embraced a holistic approach that acknowledges the interrelation of all stakeholders. They integrate environmental considerations into their strategies, operations, and reporting practices transparently, fostering trust across stakeholder groups. By prioritizing climate change, these businesses deliver direct and indirect benefits to all stakeholders, such as sustainable profitability, enhanced employee morale, responsible supply chains, and positive community outcomes.

Conversely, failure to effectively address environmental concerns can lead to value erosion for organizations. Despite recognizing the importance of climate change mitigation, many organizations are still navigating their decarbonization journey, struggling with challenges in implementation and communication. Balancing near-term profitability with climate action responsibilities proves to be a common struggle for firms, as they aim to align monetary objectives with sustainability goals. Additionally, effectively communicating climate action progress remains difficult, which hinders the translation of actions into trust among stakeholders.

Frost & Sullivan employs a rigorous evaluation framework to assess the top 50 companies in the homes and buildings industry based on their progress in climate action, leveraging published environmental metrics. The Climate-smart Performance Index (CSPI) is a comprehensive evaluation tool that Frost & Sullivan has developed to assess and rank companies based on their climate action efforts and sustainability practices within the homes and buildings industry. The CSPI provides stakeholders, including investors, policymakers, and consumers, with valuable insights into the environmental performance and climate resilience of companies operating in this industry.

Climate-smart solutions in the built environment encompass hardware, software, and services designed to mitigate the environmental impact of buildings and infrastructure while promoting decarbonization in the face of climate change. Innovations that reduce carbon emissions, enhance energy efficiency, and optimize building performance define this market. This analysis provides market size and forecasts for climate-smart solutions with 2023 as the base year and a forecast period between 2024 and 2030.

Author: Anirudh Bhaskaran