Companies ignoring climate change will be on the ‘wrong side of history,’ says World Economic Forum executive chairman

Companies ignoring climate change will be on the ‘wrong side of history,’ says World Economic Forum executive chairman

Klaus Schwab, the founder and executive chairman of the World Economic Forum, said companies must focus on three principles: profitability, people, and the planet.

Schwab, the author of "Stakeholder Capitalism: A Global Economy that Works for Progress, People and Planet," has championed the stakeholder capitalism model, in which businesses serve both shareholders and society as a whole.

"If they haven't bought in yet into the stakeholder concept, they are on the wrong side of history," said Schwab, a speaker at the Insider's event, "Act to Impact: Keeping Our Promises to the Planet."

He said executives who are focused on the long term have adopted the mindset of creating shareholder value while also taking care of the planet. But, "if you want to make a fast buck, it's a different matter," Schwab said during the "Holding Stakeholders Accountable" session.

"Companies will recognize that they will be better off economically if they take care of nature because young people don't want to work anymore for a company or an organization which is damaging nature, and customers do not want to buy products of such a company," he told Insider's Marguerite Ward.

He added that he'd like to have a discussion with billionaire investor Warren Buffett, who said