WORKING DRAFT Last Modified 6/7/2011 9:26:42 AM Eastern Standard Time Printed 6/3/2011 12:45:11 PM Eastern Standard Time

Toward a Partnership for Sustainable Cities
World Bank

June 2011

CONFIDENTIAL AND PROPRIETARY Any use of this material without specific permission of McKinsey & Company is strictly prohibited

McKinsey works with city leaders and stakeholders to diagnose, prioritize and implement environmentally sustainable economic development
McKinsey’s Sustainable Cities Service Line

Working Draft - Last Modified 6/7/2011 9:26:42 AM

Creating value for city municipalities, governments, private sector, and other stakeholders involved in driving environmentally and economically sustainable development in cities Engagement archetypes Sustainability diagnostics What we do Build the fact base for informed decision-making including quantitative assessment of costs and benefits and opportunity prioritization tools Work with cities leaders and solution providers on deep dives into specific city issues to find and implement creative and effective solutions that support the city’s sustainability goals

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Sector specific solutions

Economic growth and green field cities Organizational performance and transformation

Scan for economic growth opportunities and development of opportunity capture strategies including district development plans and greenfield cities Strengthen city organizational performance to drive implementation of solutions and ensure successful capture of opportunities

SOURCE: Sustainability and Resource Productivity (SRP): Sustainable Cities Service Line

McKinsey & Company

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Private sector clients are engaging with cities to identify “green” market CASE STUDY: NEW MARKET ENTRY STRATEGY opportunities
Description Our challenge Consumer electronics represent 30-40% of residential energy consumption Residential electricity consumption by end use
Terawatt-hours (TWh)/year, % share of total consumption

The City of Chicago launched a campaign to retrofit 400,000 homes with energy efficient appliances. Our client worked with the city to help reduce their consumer electronics energy consumption through “green” offerings McKinsey was asked to develop a green offering that was distinctively recognizable, could develop with time as the green market matured and could be scaled up throughout the U.S.

Water heating Lighting White goods Heating/cooling Consumer electronics

1,342 112 213 282
332

1,431 112 211 274
321

1,452 118 161
278 341

1,518 124 149
286 361

+13%
Working Draft - Last Modified 6/7/2011 9:26:42 AM

403 (30%) 2005

513

553

598 (39%) 2020

Key findings

2010

2015

▪ ▪ ▪ ▪

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Consumers are interested in being green but remain unsure about what actions to take through CE to reduce their footprints CE contributes ~30% of energy use in home today, but could grow to ~40% by 2020 Most promising green products and services combine high perceived “greenness” impact with a low payback period Helping consumers reduce their footprint through energy efficiency products and services can provide substantial near- and mid-term revenue opportunities in retail

SOURCE: Sustainability and Resource Productivity (SRP) Practice: Sustainable City Service Line

McKinsey & Company

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