What is the annual investment required for a transition towards sustainability?

Prepare for the ESCP Sustainability and ESG Exam. Study with targeted flashcards and multiple-choice questions, each providing hints and detailed explanations. Enhance your knowledge and pass your exam with confidence!

The annual investment required for a transition towards sustainability is estimated to be approximately $3.5 trillion. This figure encompasses a wide range of necessary investments across various sectors to address climate change, enhance energy efficiency, upgrade infrastructure, and promote sustainable practices in business operations.

This investment is critical for meeting global climate targets, as laid out in frameworks such as the Paris Agreement, and for fostering sustainable development goals (SDGs). It includes expenses related to renewable energy technologies, sustainable agriculture, and improvements in resource efficiency, among other vital areas.

Identifying this specific amount reflects significant research and consensus from various organizations, including the International Energy Agency (IEA) and other relevant institutions that track financial flows related to climate and sustainability initiatives. The magnitude of this investment indicates the scale of commitment required from both public and private sectors to enable a comprehensive transition towards a sustainable future.

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