| Shortlist readers can be forgiven for not wanting to think about the next potential crisis: climate change. At the same time, how the world emerges from the pandemic can help it tackle the risks of a warming planet. Plus, the move to digital speeds up, and Jacqueline Brassey, a McKinsey learning expert, on how to maintain mental health. |
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| As economies begin to restart after worldwide coronavirus lockdowns, the world is rightly focused on lives and livelihoods. At the same time, many are noticing what might be called a silver lining: quieter cities, drops in air and water pollution, and wildlife emerging in unexpected places. Whether these trends continue once human activity returns to full strength is anyone’s guess. |
| One thing is certain—the virus has upended the world’s operating assumptions. Amid this dislocation, it’s easy to forget that just a few short months ago, the debate about climate change, its socioeconomic impact, and the collective response it calls for were gaining momentum. Sustainability was rising on the agenda of many public- and private-sector leaders. |
| But now, given the scope and magnitude of the public-health crisis, can the world afford to pay attention to climate risk and the broader sustainability agenda? Our belief is that we simply cannot afford to do otherwise. Not only does climate action remain critical over the next decade, but investments in climate-resilient infrastructure and the transition to a lower-carbon future can also drive near-term job creation while increasing economic and environmental resiliency. |
| Change is already in progress. For starters, certain temporary adjustments, such as teleworking and greater reliance on digital channels, may endure long after the lockdowns have ended, reducing transportation demand and emissions. Second, supply chains may become more localized, reducing some Scope 3 emissions (those in a company’s value chain but not associated with its direct emissions or the generation of energy it purchases). |
| And another thing. Markets may more accurately price in risks if they better appreciate physical and systemic dislocations. Our research has also shown that executives and investment professionals largely agree that environmental, social, and governance programs create short- and long-term value. |
| This is a moment where individuals, companies, governments, and society can raise awareness of a potential climate crisis that could create long and deep disruptions. We can begin now to integrate the thinking and planning required to build greater economic and environmental resiliency as part of the recovery ahead. |
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| OFF THE CHARTS |
| What a 1.5-degree pathway would take |
| Scientists estimate that limiting warming to 1.5 degrees Celsius would reduce the odds of initiating the most dangerous and irreversible effects of climate change. McKinsey recently set out to do the math on a 1.5-degree pathway and found three challenging—yet possible—scenarios. The first scenario frames deep, sweeping emission reductions across all sectors; the second assumes oil and other fossil fuels remain predominant in transport for longer, with aggressive reforestation absorbing the surplus emissions; and the third assumes that coal and gas continue to generate power for longer, with even more vigorous reforestation making up the deficit. |
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| INTERVIEW |
| Dwight Eisenhower, ‘balancer in chief’ |
| William I. Hitchcock, author of The Age of Eisenhower: America and the World in the 1950s, spoke with McKinsey recently about how Dwight D. Eisenhower’s worldview was defined by the sense that life could be fragile. “The good times could come, but they could also go,” Mr. Hitchcock noted. While we tend to think of the 1950s as calm compared with the tumult of the ’60s, it was also an era of uncertainty. When Eisenhower became president, “the country was only eight years removed from the end of the Second World War. Virtually all of the people who voted for him had either served in the war or had family members who served in the war. They had been touched by its sacrifices, and also by its fears, struggles, and losses.” |
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| MORE ON MCKINSEY.COM |
| The COVID-19 recovery will be digital | The rapid migration to digital technologies driven by the pandemic will continue into the recovery. Here’s how to accelerate your organization’s digital capabilities to keep pace. |
| What the world can learn from China’s travel restart | Travel will return. By acting early and flexibly, companies can better adapt to the changing needs of travelers. China’s early signs of recovery provide useful lessons for the whole travel industry. |
| Emerging from COVID-19: Australians embrace their values | By following 12 Australian families for a week, we found shifts in spending, an accelerated adoption of digital technologies, and new household dynamics, including the mental strain of isolation. |
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| THREE QUESTIONS FOR |
| Jacqueline Brassey |
| Jacqueline Brassey is a director of learning and part of the global learning leadership team in McKinsey’s Amsterdam office. She is also an adjunct professor at IE University and a research fellow at VU Amsterdam. Her work focuses on executive learning and development, including mental health and well-being in organizations.
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| The emotional effects of the coronavirus pandemic are going to be with us for some time. How can people stay balanced? |
| We have heard from many people that they are doing their best to remain calm and keep everything going in the middle of the storm, yet they also report an underlying feeling of vigilance, or alertness. That is a state that may be damaging to one’s health if it goes on too long. When we become drained and emotionally exhausted, it takes a toll on the body. Eventually this may lead to burnout, or even heart-related illness. |
| To manage continual stress effectively, people should think about their own “operating model.” That means consciously choosing times when you are “on,” and making time for other things when you are “off,” or in relaxation mode. |
| I wrote a McKinsey blog post about how building long-term resilience to stress starts from within. While it was written well before this crisis erupted, its points are more relevant than ever. Two in particular stand out—building mindfulness, or being aware of our emotions and surroundings or immersing ourselves completely during daily activities. Just a few minutes a day of exercise, meditation, or listening to music builds the mental muscle needed for focus and peak performance. |
| And there’s acceptance: when outside our comfort zone, we have to face our fears and emotions. Accepting and acknowledging fear and observing it in a nonjudgmental way reduces its negative impact dramatically. |
| How can leaders in particular maintain optimism when events are changing so quickly and people are looking to them for fast answers? |
| As the coronavirus emerged as a threat, we saw that many leaders went into overdrive, working around the clock to respond effectively. It was only after some time had passed that most started to build more structure into their lives. |
| Developing what we call “integrative awareness” helps leaders recognize stress responses as opportunities to pause and reflect before acting. When they do that, instinctive biological reactions will start working for them and not against them. Not only will this practice lead to increased effectiveness, but it is also essential to managing personal health and energy over a longer period of time. |
| On a personal level, it’s easy to get caught up working long hours. How do you make sure your family life isn’t suffering? |
| I always tell people that it’s important to put your oxygen mask on first before taking care of others. The fallout from this pandemic is going to continue for months, if not years. So how can you keep the pace of work up while also focusing on your family? |
| While it may seem counterintuitive, first make sure you have healthy meals, sleep sufficiently, and take time for exercise and relaxation. Working parents know this; family time rejuvenates people. Play a game, go for a walk, plan family meals, do video calls with friends and relatives. Choose moments that are nonnegotiable for you. Block them in your calendar so nothing can get in the way. And don’t feel guilty! |
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| BACKTALK |
| Have feedback or other ideas? We’d love to hear from you. |
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