Theiah insights

Why innovate through a pandemic and recession?

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Firstly, the economy is shrinking

The World Bank estimates that the global economy is expected to shrink 5.2% this year, putting us in the midst of the deepest recession since WWII.

...and cutting costs can decrease your chances of surviving.

In a study of 4,700 companies following the last of three major recessions, companies who ruthlessly cut costs in a recession are the least likely to bounce back from economic downturns.

"While many will be fighting to keep the lights on, people who will thrive after COVID-19 has gone will use the time to change the bulb."

Paul Armstrong, Author ‘Disruptive Technologies’

But there is a way to thrive... a secret formula

Studies found companies that find a specific balance between investments in new initiatives and operational efficiencies are twice as likely to become market leaders following the recession.

Bonus: investments in 'green' and sustainable opportunties outperform!

Sustainability has become a key opportunity area to find this balance. Nearly 90% of research reports in this area show that sound sustainability and ESG standards lowered companies’ cost of capital and resulted in better operational performance.

Additionally, there’s a growing consumer expectation for eco-friendly and socially responsible brands, opening up new potential revenue streams to attract and retain loyal customers.

More on the business case for sustainability