Climate change poses a real risk to a business, and developing implementable plans to manage this is one of the most complex issues businesses face today.
The global response to climate change is creating a wide range of challenges that businesses must understand and manage. Developing and executing a plan that not only manages risk but also identifies the new business opportunities created by these challenges requires a unique combination of strategy, business acumen, and deep energy, climate and environmental policy expertise.
Assessing risks, identifying opportunities
ERM works with leading organizations provide technical, regulatory and economic analysis of emerging regulations through multi-company coalitions to comprehensively assess the impact of climate change on their business and develop an integrated program that cost effectively mitigates the material risks, captures opportunities and tracks progress. Additionally, we work with technologists, governments and civil society organisations to create supportive environments and deploy vital technologies to support the wider economic transition.
Deep knowledge across the economy
Our deep experience provides our clients with the broad range of insights required to build these plans. We have decades of specialist knowledge at every stage in value chains, including:
- Primary energy resources and conversion;
- Systems integration, storage and energy networks (gas, electricity and heat);
- Energy use in buildings, industrial processes, manufacturing and transport; and,
- Carbon removal, waste energy use and chemicals recycling.
This is combined with decades of experience of hands-on engagement with industries which has built strong experience in:
- Local, regional and national climate and energy policy and regulation;
- Carbon and alternative fuels markets;
- Economic trends and drivers; and,
- Risk management.
Delivering value tailored to companies’ needs
ERM has over 50 years of experience assessing and delivering broad environmental services, and our energy and climate change capabilities include:
- Comprehensive GHG inventory and management, from advice on policy and regulatory change to strategy and project planning, permitting and implementation
- Deep skills in lifecycle assessment, with which we help our clients to understand and manage environmental impacts throughout the product value chain
- A long track record in the transition pathways analysis including policies, technologies, and economics across all our knowledge areas covering topics such as hydrogen, carbon capture, industrial processes, energy networks & storage, building heating & cooling, alternative fuels & chemicals
- Insights and tools to help transport operators to reduce emissions from road, rail, maritime and aviation
- A successful record helping clients to secure public funding for innovative demonstration projects and providing program management for such projects
- Effective building-level energy management using our custom methodology (Quick Environmental Savings Technique (QUEST), which is focused on driving operational excellence and generating rapid energy savings
- Strategy development which helps clients develop strategies to comply with requirements, anticipate future requirements, and understand the potential operational implications of litigation
- Legislation and regulatory assessments based on local knowledge of regulatory requirements combined with global experts and multidisciplinary teams
- Information systems experience that helps companies make fact-based decisions, track progress, measure risks and report performance as required
- Economic and financial insights to help develop risk-based strategies for compliance and mitigation
- Development of quantitative risk assessments and response plans designed to protect businesses across their supply chains from the physical risks of climate change
Low Carbon Transition, Climate Change and the TCFD
The G20 Financial Stability Board’s Taskforce on Climate-related Financial Disclosures (TCFD) was set up to develop guidelines for analysis and disclosure of climate-related financial risk and opportunity for the benefit of investors, lenders, insurers and other stakeholders. ERM wrote the technical supplement on the use of scenario analysis in relation to climate-related financial risks and opportunities to determine strategic response options.
Using our deep understanding of the TCFD requirements, we assist clients to assess financial risk from climate change and to deliver strategic responses to capture opportunities emerging from the low carbon transition.
We work with clients to comprehensively assess their operations and strategically evaluate options for achieving net-zero greenhouse gas emissions by a certain date. We assist clients to obtain input from other stakeholders, including investors and environmental organizations.
We provide strategic advice to clients on their net zero journey on the emerging options for transitioning to a lower carbon system, including electrification, renewable gas, biogas, energy storage, Carbon capture use and storage (CCUS) and hydrogen. Our domain expertise in the analysis, investment and deployment of cutting-edge low-carbon technologies supports market differentiation. We work with clients to consider company and consumer costs, feasibility, technological maturity, as well as other key factors for the client.
By proactively and pragmatically assessing climate change impact on a business, executives can make informed decisions about where and how to invest across their business.