The Great Shift – The Transition as a Business Driver

Today, we see a growing number of areas where the world’s most pressing sustainability challenges intersect with significant business potential. These intersections can be described as opportunity gaps—situations where a clear societal needs align with a viable business model and limited competition. For companies that identify and act on their opportunity gaps, there are major gains to be made—both in terms of positive impact and new business.

Traditionally, some companies have viewed the sustainability transition as a risk to manage, a regulatory compliance issue, or a cost to minimize. But a new mindset is emerging: one that sees sustainability as a pathway to future-proof business, innovation, and competitive advantage.

In light of urgent societal needs and the breaching of planetary boundaries, the demand for solutions is now on a scale we have never seen before. This shift is creating a new market logic. The UN’s Business and Sustainable Development Commission has estimated that achieving the Sustainable Development Goals could open up $12 trillion in new market opportunities globally by 2030 (source: Better Business, Better World, 2017). More recent estimates, such as from the World Economic Forum and Systemiq (2023), suggest that the climate transition could unlock over $10 trillion annually in global economic gains by 2050.

Businesses are uniquely positioned to capture these opportunities. Governments can set the rules through policy, researchers can identify the problems and their urgency, and individuals can influence change through consumption and voting. But it is within the private sector—whose combined revenue far exceeds public budgets—that the financial power resides, along with the capabilities to build business models, scale technologies, design offerings, and reach global markets. That’s why businesses must shift from being seen as part of the problem to becoming the engine of the solution.

CSRD: A Tool for Strategic Shift – Not Just Reporting
From our experience supporting Swedish companies with their first CSRD reports, we’ve seen that many start by focusing primarily on risks and compliance. Opportunities are often mentioned only in passing, and few connect the double materiality assessment with business development and strategy in this first round.

However, EU guidance, the TCFD, and reporting standards all convey a clear message: sustainability-related risks and opportunities must be integrated into strategy, governance, and decision-making.

We believe CSRD can be a powerful tool to shift the conversation from “What’s required?” to “What’s possible?”. The real question is: Does your company want a piece of the opportunity pie? The potential business value in the transition is enormous—and CSRD offers a structured opportunity to identify and pursue it.

One sign of this shift toward value creation is the emerging focus on avoided emissions—emission reductions that occur outside a company’s own footprint thanks to its products or services. These frameworks help companies capture and communicate their indirect contributions to the transition.

What Is an Opportunity Gap?
An opportunity gap exists when:

• The need is clear (climate, water, resources, health, nature)
• The business model works (willingness to pay, technology, policy support)
• Competition is not yet saturated
• The company can contribute directly or indirectly

This goes beyond traditional transition sectors like energy, steel, or agriculture. The focus now is on indirect contributions—companies that consume energy and materials, create digital tools, offer financing solutions, build capacity, or influence behavior. These often offer both scalability and speed.

Examples:

• A communications agency helping consumers adopt circular lifestyles
• A fintech company enabling green investments
• An HR firm reskilling people for green jobs
• A tech company using AI to predict food waste, optimize mobility, or balance energy usage
• A construction firm building modular, resource-efficient housing for circular systems
• An e-commerce platform integrating reuse, climate impact information, and product life extension

Few of these companies are currently seen as “sustainability-critical.” That needs to change.

From Insight to Strategy – Finding Your Opportunity Gap
We suggest the following approach to identifying business opportunities within the transition:

1. Identify Needs – What sustainability challenges are urgent in your value chain or external environment? (e.g. energy transition, circularity, nature loss)
2. Identify Strengths – What are you truly great at? (e.g. data, customer reach, product design, change management)
3. Connect to a Gap – How can you combine your strengths with these needs to develop solutions the market will value?

Often, a paradox emerges: the market isn’t yet asking for what you can offer—because it doesn’t know it exists. This can make market research misleading: no one seems to want your idea, even though the need is real. The solution? Don’t just look at current demand—analyze structural needs, policy signals, and blind spots in the value chain. If you lead with a new perspective, you can shape demand—not just respond to it.

2050 Helps You Identify and Activate Opportunity Gaps
We support companies in:

• Understanding global needs vs. industry-specific opportunities
• Strategic dialogues on opportunity-focused double materiality and CSRD
• Workshop formats to identify new value-creating offerings

Reach out to us if you want to stay ahead—seeing the transition not as a barrier, but as a field for growth.

“It’s time to shift the question from ‘What does sustainability cost?’ to ‘How can we be part of the solution—and grow because of it?’”

Elin Engkvist
Seniorkonsult på 2050