The $2 Billion Climate Opportunity: Why Smart Boards See Climate Strategy as Growth Driver, Not Risk Management

How forward-thinking directors turn climate governance into competitive growth engines

Australian consumers will pay 9.7% premiums for sustainable products while 94% of investors suspect greenwashing in competitors' disclosures. With mandatory climate reporting now in effect, the opportunity to build authentic climate capabilities has never been clearer.

Through my board positions and 25 years in global food systems, I am witnessing climate governance evolve from risk management to the primary growth driver reshaping entire business ecosystems.

The data tells a compelling story: 55% of Australian consumers view sustainability as extremely important (Statista, May 2024), yet widespread greenwashing has created a credibility crisis. This creates massive opportunity authentic climate capabilities simultaneously unlock consumer premiums, green finance access, and competitive positioning.

The Strategic Economics of Climate Growth

Market Premium Reality (2024 Data):

• Consumers willing to pay 9.7% more for sustainably produced goods (PwC Voice of Consumer Survey, 2024)

• 76% pay premiums for locally produced/sourced products (PwC Australia, 2024)

• 46% actively consider sustainability when purchasing (Monash ACRS, June 2024)

The Trust Gap Creates Opportunity:

• Only 4% completely trust sustainability logos (17-market survey, 2024)

• 57% of businesses made concerning sustainability claims (ACCC internet sweep, 2023)

• 94% of investors suspect greenwashing in current disclosures (PwC, 2023)

This creates huge opportunities for organisations with authentic climate capabilities. The sweet spot emerges where consumer premiums meet clean energy transitions and circular economy models.

Climate as Competitive Growth Engine

Australia's mandatory climate reporting began January 1, 2025 (AASB S2), with Group 1 companies now preparing their first sustainability reports alongside financial reports. While many companies are still adapting to the new requirements, smart boards recognised this transition as a growth catalyst rather than compliance burden.

From my board experiences across national organisations and Innovation Gamechangers, leading climate strategies unlock multiple opportunities simultaneously:

Growth-Focused Actions:

• Integrate climate metrics that optimise supplier relationships while accessing green finance

• Use clean energy investments to reduce costs while enabling premium positioning

• Build circular economy models that create new revenue streams while strengthening competitive advantages

The Strategic Reality: When you invest in climate verification, you simultaneously strengthen supplier ecosystems, enable premium pricing, and attract investment. Consumer trust drives premium pricing, which funds clean energy capabilities, which unlocks more growth opportunities creating sustainable competitive advantages.

The organisations thriving in 2025 won't be those minimizing climate risk only, they will be those using climate governance to unlock productivity, competitiveness, and long-term value creation.

Strategic Questions:

• For Directors: How is your board positioning climate governance to unlock growth opportunities across clean energy, circular economy, and premium markets?

• For Industry Leaders: What collaborative climate initiatives could strengthen industry competitiveness while creating first-mover advantages?

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About Feed Forward (LinkedIn): Strategic insights for directors and C-suite leaders navigating industry transformation.

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